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$17.37 1.93 (12.50%)
7/8/2008 4:04 PM

KB Home (KBH)

CAPS Rating:
*

Homebuilder with domestic operations in the following regions: West Coast, Southwest, Central and Southeast. Also provides mortgage banking services to the majority of its domestic homebuyers through its wholly-owned subsidiary, KB Home Mortgage Company.

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Avatar StocksForCash (< 20) Submitted: 2/13/08 9:41 AM : Outperform Start Price: $24.48 KBH Score: -22.48

Okay ... so I tried a swing short on some of the homies that had popped up a few weeks ago. Most of them worked out for minor gains and a few lost. Now, with the rate cuts, Fed. stimulus, gas going down and whatever else, ... changed my thinking that now is the time to be accumulating home builders in anticipation of the economy pulling through this and landing on its feet over the coming 1 to 3 years. Granted, we might bounce through a recession but longer term, these should perform okay to great. Also, with the whole sector in a trough, good time for some consolidation (I got luck on QMAR and YHOO being picked up in my few short weeks playing CAPS). I wanted to put this whole shpeel on the blog but I'm at work and can't be blogging ....

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Avatar mammothtusk (< 20) Submitted: 2/21/08 8:00 PM

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You are correct you should not be blogging - this stock is dead money

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Avatar Streetkill (87.36) Submitted: 3/24/08 8:32 PM

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I think you're onto something. Rated five stars by Morningstar, with a significant amount of cash, and not burdened by the land holdings some other builders have. And still about 70% off its high.

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Avatar creek79 (84.27) Submitted: 5/09/08 11:25 PM

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Not the time to be accumulating home builders. Trust me i want to pull the trigger on these as bad as you do, were gonna make a ton of cash on these but its way too early. Wait for all the subprime news to disappear, B of A to figure out what its gonna do with CFC's debt, and citigroup to stack some cash, after all that wait another 6 months and check the housing starts. If all this is good then lock n load my homie.

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Avatar cubanstockpicker (72.68) Submitted: 5/15/08 3:47 PM

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There is something not visibly apparent to most people thinking the homebuilders will go up. Who is going to do the financing? What will be the terms of the financing?
As of date, I have seen maybe 5% of borrowers bring money from their own pockets to drop a down payment.
Americans cant save to buy a home now, because GAS and food are sucking their savings up faster than a HUMMER downs a full tank. That is assuming they have a savings.

The sad reality is, if we do not let the market correct on its own and allow properties to go down in the hot zones, we will create a secondary bubble courtesy of the FED.

DID ANYONE MISS THE HOME FORECLOSURES LIST from April, up another 4% from March(mar was already a record month)?? Those homes aren't going to disappear snd if the fed bails out, it will mean the people who got these low doc and even full doc loans may have lost their job, or even worse, NEVER REALLY MADE THE MONEY!!!! and I will not buy a KB home for 300k when I got a recently foreclosed home in GREAT CONDITION for 66% of the price?
Maybe I am alone on actually trying to buy an affordable home and trying to pick up a bargain. And people will buy the 300K home .
That said it means they need to come to closing with 10% down payment closing costs. OOOOOh and they need to make around 45,000 a year and be almost 0 debt. You know anyone like that? Few and far between.

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