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Varchild2008 (83.82)

SPF is over $6 now. Where are all the Wammy Pammy Cupcake Naysayers Now?

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April 05, 2008 – Comments (4)

Standard Pacific Corp's stock price is up to $6 and with Congress thinking about bailing out the housing sector....  These companies are going to be awash in cash.

 There's no better time to get into the Housing Sector in your portfolio with Phulte or SPF or any number of Housing Stocks.  By the end of this year everyone is going to talk about the return of the housing bubble in my opinion.

4 Comments – Post Your Own

#1) On April 05, 2008 at 5:38 PM, wolfhounds (29.25) wrote:

The provision you're refering to is to extend the NOL carryback period an addtional 2 years so homebuilders can get taxpayers money from the years they had enormous profits. Congress is already getting an earful from constituents and the news networks have taken up the bashing too. This may not make it into law, so I wouldn't count my eggs yet. Even if it does, homebuilders still have to sell new homes to cover fixed costs and there's no guarantee that will occur with so many cheaper resales and foreclosures on the market. It may only extend the life of the weakest.

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#2) On April 05, 2008 at 6:16 PM, bellard (99.32) wrote:

I am not sure the NOL carryback will happen. But I do agree that the US will keep bailouts for housing coming.....

SPF first quarter will be brutal imho. My 3-6 range is still my SPF forecast, so I would not buy here, but shorting any HB here is way too risky. The US will contiue to buy mortgage securities, just like they started with the bear 30B CMO purchase. My guess is about 500B more to come 

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#3) On April 06, 2008 at 10:29 AM, TMFJake (58.88) wrote:

Next to "nattering nabobs of negativity," I think "wammy pammy cupcake naysayers" maybe my favorite taunt of all time! :)

 

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#4) On April 06, 2008 at 10:54 AM, Varchild2008 (83.82) wrote:

Hey TMF Jake,

I can't quite take credit for that taunt as I borrowed it from a T.V. Commerical for Priceline.com.  The Star Trek guy whose name leaves me called the guy on the computer "wammy pammy" and "cupcake" and "mommas boy" for not asking for real low pric for his hotel stay.

Anyhow..  I am not sure about the other Homebuilders but SPF's financial report released quite awhile ago showed that they are consolidating their properties.

I expect a pull back on SPF  (big pullback)  to about $4.80 soon especially with the earnings report.  So I wouldn't get on board SPF immediately but instead put it on your watch list.

SPF is indeed overbought and overextended right now.
But, the long term growth for SPF is HUGE.

The biggest thing I like for SPF is their move towards Condos in areas where their new homes are selling (california/nevada/arizona).  These CONDOS will have a long term benefit as more baby boomers retire and move out of their family homes to these more manageable condos.

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