My guess is these stocks have a higher likelihood of bankruptcy than other on first glance:
BZH, DHI, SPF, HOV
Just a Guess But These Housing Stocks Have Highest Chance of Bankruptcy
Started by
Cirrus
, May 07 2008 07:45 AM
3 replies to this topic
#2
OEXCHAOS
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Mark S. Young
Posted 07 May 2008 - 08:27 AM
Yup. I'm not agreeing with the picks, per se, but this sector is going to lose a number of members. They're the walking dead, hiding behind financial legerdemain.
They tend to be levered and they tend to build and overextend regardless of conditions. Right now, there's no margin and tightening credit. How can they make money?
Mark
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#3
Jnavin
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Posted 07 May 2008 - 08:30 AM
Problem: already very high short interst on those stocks. DHI is at 15%, I think, last I checked.
#4
Cirrus
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Posted 07 May 2008 - 08:50 AM
Short Interest is high for a reason. My guess is short interest is frequently very high in any company before bankruptcy. You can use ITM puts if you can't borrow the stock.
