Hovnanian Enterprises, Inc. (HOV)

TheGarcipian (98.67) Submitted: 6/10/08 9:38 PM : Start Price: $7.03 HOV Score: 11.80

Hopefully this one has a little bit more blood to let...
Re-downing this one. From my original Pitch:
While its houses may not fall down, its stock certainly has and will continue to do so. Apparently, not a well-run company from what I gather on Yahoo! Finance: forward P/E of 28 (for a housing builder?!), negative profit margin, while oper.margin isn't that much better (+5.4%), RoA=3.4%, RoE is negative (-6.3%), negative YoY growth in both revenues and EPS. While it's nice to see that insiders hold 12.5% of the stock, it makes me very nervous that a company with such a huge market cap ($1.1B) has so tiny a hard-cash backup (only $10M), with a high D/E ratio of 141%. Should hard times fall, as they are now in the Northeast building sector, this company is going to struggle mighty hard to pay operating expenses until they can sell more houses.

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