The Ryland Group, Inc. (RYL)

TheGarcipian (99.15) Submitted: 11/3/2008 6:49:05 PM : Start Price: $18.31 RYL Score: +8.76

Lots of debt (Debt/Equity = 92.8%). Losses are piling up, and little new building is being done. Profit margins are at -21.3%, operating margin is barely above water at 3% as is Return on Assets at 1.8%, while Return on Equity is a blistering -47.2% in the most recent quarter. I see the economy continuing to slip down the backside of this housing bubble for another 12-18 months, so do not anticipate much new real estate buying for at least the next 9-12 months. Ryland only has $4.68/share in cash, and they'd better hold onto that as long as possible, for it will be their life line during the next year. They must convert more of their properties to cash, but I don't see that happening. The only fly in this downward trend may be occasional blips upward as the Shorts Percentage against this stock is currently H-U-G-E at 32.6%. A short squeeze could push this stock up to $30-$33/share, but I think that run-up will be short-lived.

Thanks to DemonDoug and dexion10 for their insight via their reviews of this Thumbs-Down choice. Please see their pitches too.