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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ahhaha who wrote (91933)10/18/2007 10:05:23 AM
From: GraceZRead Replies (3) of 306849
 
Is RYL a buy?

Sorry, I took so long to answer, I'm up to my eyeballs in work.

I don't think it's a buy even at this level (at best it was a ST trade). I think it might be a buy around 14 but it just might take the round about way to get there. If you bought it at 14 you'd have to be willing to hold it down to 9 or so and that could be rough because it would have to establish a base all over again and who wants to hold dead money. I wouldn't count on it hitting 9 but even one BK in publicly owned HB sector will take them all down very hard for a period of time regardless of how well run they are. I think Ryland will be one of the survivors, they are doing what is necessary. Chad isn't a Harvard B-school CEO, the guy grew up in the bare knuckle world of construction.

It remains to be seen whether there will be any public HBs going under. I think a TO is more likely for the mortally wounded. These guys are always looking to expand market share during a bust but the other HBs might not have the means, they're all trying to shore up their balance sheets and preserve cash.
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