Beazer Homes USA (BZH) NewsBite - Beazer Homes Plunges on Recession Signs

Posted on Friday, April 04, 2008 3:00 PM

Beazer Homes USA Inc. (BZH) opened at 11.35. So far today, the stock has hit a low of 10.90 and a high of 11.38. BZH is now trading at 11.00, down 0.39 (-3.44%). The stock hit its 52 week high of 38.76 in May and set its 52 week low of 4.53 in January. BZH has been slipping for most of the past year. Shares of housing stocks have been tumbling today on signs that crises in the housing, credit and financial sectors have inflicted on companies, jobseekers and the economy as a whole. This came in reaction to Labor Department's announcement that employers cut 80,000 jobs in March, the most in five years, while the national unemployment rate rose from 4.8 percent to 5.1 percent. Technical indicators for the stock are bullish and steady while S&P gives BZH a negative 2 STARS (out of 5) sell rating. If you’re looking for a hedged play on this stock, consider a May bear-call credit spread above the $15 range. BZH stock could rise up to 36.4% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]