Interest Rate Roundup

Friday, October 13, 2006

Home builders actually SOLD on bad news

Just a quick hit note here: Home builder Centex (CTX) had terrible news out after the bell yesterday -- big earnings miss ... tens of millions of dollars of land option losses and write-downs ... a 28% YOY decline in net orders, and more. CTX is certainly not the first builder to deliver an ample helping of bad news. We've seen warning after warning from the sector in the past several weeks. But today is the first day a home building stock sold off on bad news AND STAYED DOWN. Most of these recent bad news bombs have been viewed as "buying opportunities" by the Wall Street crowd. Is this just a blip or a change in trend? We'll see -- but it's worth noting.


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