Friday, April 20, 2012

Hovnanian ($HOV) in Barron's Again

“Hovnanian is in trouble,” writes Gimme Credit’s Vicki Bryan. “Profitability is so weak that even with improving sales it hasn’t slowed the acceleration in cash consumption in operations, which has pushed cash to severe lows. Distressed debt transactions and even stock offerings have not staunched the bleeding.”
Vicki is a really good credit analyst.

I've been doing some posts about Hovnanian. Conclusion: the bonds are cheap relative to the stock. 

-- Side note: The CHK long is now the 2nd most contentious thing that has ever been posted here; second only to my thesis that silver should be sold at $40/ounce last spring.

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