Hovnanian (HOV) NewsBite - HOV Down on Analyst's comments

Posted on Monday, January 14, 2008 1:30 PM
Hovnanian (HOV) opened at $6.11. So far today the stock has hit a low of $5.52 and a high of $6.11. HOV is now trading at $5.77, down 0.13 (-2.19%). After hitting a one-year high of $37.58 in February, the stock hit a one-year low of $4.25 last week. Shares of HOV are falling today after a Motley Fool article listed competitor Beazer Homes (BZH) as the worst stock for 2008. The article identifies the homebuilder sector as a suffering industry likely to be targeted by bargain-hunters, but warns of the sector, "Sometimes, ugly is an opportunity, but other times, ugly is just ugly." Technical indicators for HOV are bearish and steady, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating. If you’re looking for a hedged play on this stock, consider a February bear-call credit spread above the $7.50 range. HOV hasn't been above 7.50 since December. The stock could gain up to 29.9% and this trade would still be profitable. [LHF- Seven Summits Strategic Investments NewsBite]
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