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March 27, 2007

Beazer, bejeezer!, Tues., Mar. 27, 2007, 5:09 PM

A week ago, the Beazer Homes (NYSE: BZH) Exec VP & CFO resigned effective immediately. Now the news breaks from Business Week that Beazer is being investigated for mortgage fraud. The stock is down -12 pct after-hours to $27.65 (and falling).

BZH has had a tough year, trading down from a 52-week high of $69.61.

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I’m sure glad it was never a Cara 100 company. Wow! Now I'm wondering if other homebuilders were doing something similar.

The news report says the ex-CFO O'Leary is headed to Kaydon Corp (NYSE: KDN). I wonder.

This news story from Business Week is going to make for a real ugly market tomorrow, I think.

Posted by Posted by Bill Cara on March 27, 2007 05:09:41 PM | Category: 25 Cons Discretionary

Discourse

GOOD question, Bill. I'd bet ANYTHING what BZH did was "standard industry practise"... Time for puts on the builders'ETF?

Posted by: Jock [TypeKey Profile Page] at March 27, 2007 5:18 PM [link]

Bill,

Now one would think we would have a "real ugly market tomorrow", but given how the market interprets bad news these days, it wouldn't suprise me if we had a green day tomorrow!

Index Futures, however, are taking a pretty good dive right now. On second thought, look like it will be very ugly.

Posted by: onlineaces [TypeKey Profile Page] at March 27, 2007 6:43 PM [link]

I covered my short in BZH this morning before the news. Oh well.

Posted by: moab [TypeKey Profile Page] at March 27, 2007 6:55 PM [link]

Yikes,

I just read that home building giant Lennar (LEN) said business was so soft it withdrew its 2007 earnings guidance entirely. But, Ben is addressing Congress tomorrow and perhaps he will Jedi mind meld the entire planet to believe that "Everything is fine". Will traders believe him this time?

Posted by: onlineaces [TypeKey Profile Page] at March 27, 2007 6:58 PM [link]

Posted by: onlineaces [TypeKey Profile Page] at March 27, 2007 7:00 PM [link]

I added another 20 puts on the S & P today for June. That gives me 30.

Posted by: stktrader [TypeKey Profile Page] at March 27, 2007 7:18 PM [link]

Oil spiked to 68 in after-hours on rumors Iran struck a US naval ship. US denies, but oil holding at 64.10.

Along with Beazer plus Bernanke speaking, tomorrow ought to be quite a day!

Posted by: Bill Cara [TypeKey Profile Page] at March 27, 2007 7:23 PM [link]

I am curious to note the effects on the PM Miners tomorrow. May create some good buying opportunities.
Thanks for the article on UXG way back Bill (Archives). Led to a purchase of UXG at what I believe to be a fair price, given "the jockey". (Although I must admit I was a little early).

Either way, enjoy the market action everyone.

Posted by: Eric [TypeKey Profile Page] at March 27, 2007 10:59 PM [link]

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