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Review of Homebuilding Stocks - Very Ugly Downsides

The homebuilders are on the downside of a price cycle that began in 2000 and peaked at all-time highs in July and August 2005. Most of the homebuilders are down more than fifty percent from their peaks and a few are down more than ninety percent (table).

iShares Dow Jones US Home Construction (ITB), an exchange-traded fund, that owns homebuilding stocks is down 61.86 percent from its high.

Be careful with these stocks - buying on the downside is always dangerous.

20 Homebuilding Stocks
Company
Quote and Chart
Close 12/7/2007
Close Bubble Peak Jul & Aug 2005
% Decline From Peak
NVR
$558
$938
40.51%
MDC Holdings
$38.89
$84.24
53.83%
Toll Brothers
$22.68
$58.25
61.06%
D R Horton
$13.86
$39.77
65.15%
Brookfield Homes
$16.32
$48.72
66.50%
Ryland Group
$26.68
$81.26
67.17%
Centex
$25.81
$78.84
67.26%
KB Home
$23.70
$80.10
70.41%
Lennar
$18.32
$65.84
72.17%
Pulte Homes
$11.52
$47.33
75.66%
Meritage Homes
$16.49
$95.75
82.78%
M/I Homes
$10.24
$60.21
82.99%
Beazer Homes USA
$10.06
$65.16
84.56%
Hovnanian Enterprises
$9.39
$73.19
87.17%
WCI Communities
$4.05
$35.27
88.52%
Standard Pacific
$3.58
$48.53
92.62%
Levitt
$1.70
$32.14
94.71%
Comstock Homebuilding Companies
$0.99
$27.80
96.44%
Dominion Homes
$0.60
$22.35
97.32%
TOUSA
$0.24
$29.65
99.19%
NOTE: Price data are from finance.yahoo.com as of December 7, 2007.


Related Articles:

Homebuilding Stocks - Articles on buyupside.com
Home Builders Have Stock Gains that Indicate a Price Bubble
Price Patterns - A Bubble Top Is an Extreme Pattern
Ugly Downsides - Avoid the Price Downside


Posted December 8, 2007.




 

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