I don’t want to get too obscure with references but in the Dr. Zeuss story, the poor elephant is the only one who believes in the existance of Whos while everyone else says “pooh pooh.”
Well, against all the naysayers, against every media outlet, against each and every pundit, against thier own piers, against even the great Alan Greenspan – DH Horton says: “Not only was this a fantastic year (beating even this quarter’s inflated estimates by 50%), but next year is looking even better with another 15% bump in revenues!”
The nerve of these people! Don’t they know the housing bubble has burst?
Apparantly, no one has mentioned this to the #1 home builder’s customers who bought a record 18,622 homes last quarter (during, gasp, the Hurricane!). Since 1999 this company has been on a real tear with sales rising from $3Bn to $12Bn and profits rising from 5% to 13$ during that time period. Even between 1997 and 2000, a housing “slump” the company grew profits by 50% annually.
While I would not buy and hold this stock (you cannot fight the negative sentiment on this sector) I do believe it will get a well deserved pop from this news. If it opens higher than 34 I would shy away but if it opens lower I will consider taking a position and looking for a quick 10% on the option.
