Monday, September 17, 2007

Hovnanian: Housing Hype?

Housing hype or indication of turn around in home sales?
clipped from
  • Sometimes it’s all about marketing, as Hovnanian Enterprises saw its shares climb 3% after the company held a ballyhooed “Sale of the Century” in an attempt to clear some of its unsold inventory. The event worked better than expected, as the home builder sold 2,100 homes, more than doubling expectations (as CEO Ara Hovnanian claims, anyway), and helps generate some cash flow. What it means for the housing industry is unclear — Citigroup analysts point out that “we cannot interpret strong results as evidence that the market has improved,” as discount buyers can generally be enticed by a good deal. Lower prices set by Hovnanian’s recent sale event should trigger significant impairments industry-wide in 3Q,” note Bank of America analysts, pointing out that as one goes, the entire industry goes, so expect discounts from rivals, and a near-permanence of this one-time “deal.”
  •  blog it

    No comments:

    Post a Comment