Working up Courage to Bottom Fish Beazer

Originally Published in Charting the Market 8/2/07

Beazer Homes (BZH-NYSE) sent pulses racing yesterday with a decline that reached 40% at its peak. A snapback later in the day erased some of the sting for the holders, but the sharp decline in this stock has taken our breath away. The heavy trading volume and the FUBAR chart seem vaguely familiar to us; but deja vu is not really an investment methodology. A crappy balance sheet and dozens of friends and family are trying to scare me away from buying this name, but a voice in my head keeps screaming to buy it. Of course, maybe I am just insane.

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