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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (16649)	9/19/2002 8:20:58 AM
From: jim_p	Read Replies (1) \| Respond to of 23153

7:31AM Hovnanian cut to Neutral at CSFB -- valuation (HOV) 39.05: CSFB downgrades to NEUTRAL from Outperform following an advance of almost 40% since Aug 15. Given the uncertainties (i.e. record delinquency rates, significant weakness in high-end housing, and easy credit standards) related to a potential slowdown in the housing market, firm believes it is prudent to take a disciplined approach to valuing homebuilding stocks and take profits when stocks reach peak trading multiples. Notes that historically group doesn't trade above 9-10x forward earnings or 2.0x book; HOV currently trading at 8.5x EPS and 2.4x book

To: CommanderCricket who wrote (16649)	9/19/2002 9:12:33 AM
From: Sharp_End_Of_Drill	Read Replies (1) \| Respond to of 23153

CC, shorting SLR and SANM was a great play - and you identified it many moons ago. Your take on the situation has been very worthwhile. What do you think of putting a hedge in place, like going long Jabil, and short one that you think won't make it? If the market tanks you would probably be about net zero, if it continues to grind down you would likely come out ahead on the survivor. If it soars which is very unlikely again you might be net zero. Funny things can happen in bear markets when competitors go belly up - sometimes the survivors get a pop in the worst of times. Sharp