Use access key #2 to skip to page content.
$23.18 0.15 (0.65%)
8/29/2008 4:06 PM

The Ryland Group, Inc. (RYL)

CAPS Rating:
*

A homebuilding and mortgage-finance company. The Company consists of six segments: four geographically-determined homebuilding regions, financial services, and corporate.

View All Commentary (RYL)

Recs

3

Avatar TMFEldrehad (99.99) Submitted: 7/24/07 5:39 PM : Outperform Start Price: $32.44 RYL Score: -12.96

What's this?! Another outperform call on a homebuilder? Has this TMFEldrehad guy gone off his rocker? Lost his marbles? Is he suddenly a taco or two short of a combination plate? Doesn't he read the newspapers? Watch T.V.? Listen to the radio? Surf the internet? Read the financial press?

Um, well yeah, I do. Make no mistake, this is a highly risky and speculative call. That said, often the time to pounce in situations like this is exactly the time when nobody, or almost nobody, thinks it's a good idea.

This is contrarianism at it's finest - and it takes a strong stomach. Good thing for me it's only CAPS points that are on the line, because truth be told, this isn't a plunge I'm willing to make with real money, at least not quite yet.

Report this Post Replies: 4 | Reply

Avatar echofarmer (32.19) Submitted: 7/24/07 9:14 PM

Recs: 4 | Rec This

From "Liar's Poker," by Micheal Lewis:

"... when all investores were doing the same thing, he would actively seek to do the opposite. The word stockbrokers use for this approach is 'contrarian.' Everyone wants to be one, but no one is, for the sad reason that most investors are scared of looking foolish. Investors do not fear losing money as much as they fear solitude, by which I mean taking risks that others avoid. When they are caught losing money alone, they have no excuse for their mistake, and most investors, like most people, need excuses. They are, strangely enough, happy to stand on the edge of a precipice as long as they are joined by a few thousand others."

Report this Post Reply

Avatar SidBord (65.43) Submitted: 9/26/07 5:11 PM

Recs: 0 | Rec This

". . . a taco or two short of a combination plate?" (LOL!) Good one TMF.

Speaking of contrarians, I just bought a LOT of shares of ABAT.OB this morning (contrary to the "all stars" recommendations), and it had gone up over 11% by the end of the day. I gotta admit I was sweating that one, but something about it just seemed right.

Report this Post Reply

Avatar BetterMoney77 (68.44) Submitted: 12/06/07 3:18 AM

Recs: 0 | Rec This

With 10,000 regular stocks to choose from, you have to pick a piker BB stock.

Report this Post Reply

Avatar FleaBagger (98.84) Submitted: 5/22/08 11:29 AM

Recs: 0 | Rec This

Far be it from me to criticize the oldest and wisest of the CAPS pantheon, but (okay, so it be not so far from me) you are not alone in this except among CAPS All Stars. You have CAPS <20's and - more disturbingly - real $ investors with you on this one. If you were really alone on this pick, homebuilders would be going down a lot more and a lot faster, but there always seems to be P/E-only value investing novices and short-term stock gamblers ready to swoop in to save them from the consequences of their poor decisions made in times when real estate values were going up 1-2% every month and money was free and easy. Most homebuilders should be in penny-stock purgatory right now, and most of the rest should be at absolute zero. RYL is not one of the few who deserve to be trading at more than one tenth of their bubbelicious all-time highs, let alone one third! RYL is more than one third its all-time high! (?) Come on! That was with eternal 10% real estate price increases priced in!

Report this Post Reply

Featured Broker Partners