Posted by charles_trade on 13th of Apr 2009 at 04:21 pm
FYI, The fundamental are pretty ugly on HOV.
Their cash flow is so bad (see
http://www.reuters.com/article/marketsNews/idINN1960004220090319?rpc=44)
that they had to borrow with secure senior notes at an interest of
18%.
We never know about the future, but a homebuilder
that borrow money (30 Millions) at 18% cannot become cash flow
positive. They are bound to go bust some day.
I know you want to trade on TA instead of fundamental, but
let's say that you should have an exit strategy well in place .
Charles
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HOV
Posted by mikeovanes on 13th of Apr 2009 at 02:02 pm
Dear MAtt:
Do you think HOV is a buy at these price levels 1.75? it seems to fail at these levels?
thanks, Mike...
FYI, The fundamental are pretty
Posted by charles_trade on 13th of Apr 2009 at 04:21 pm
FYI, The fundamental are pretty ugly on HOV.
Their cash flow is so bad (see http://www.reuters.com/article/marketsNews/idINN1960004220090319?rpc=44) that they had to borrow with secure senior notes at an interest of 18%.
We never know about the future, but a homebuilder that borrow money (30 Millions) at 18% cannot become cash flow positive. They are bound to go bust some day.
I know you want to trade on TA instead of fundamental, but let's say that you should have an exit strategy well in place .
Charles