Despite a slew of negative housing data, Hovnanian Enterprises CEO Ara Hovnanian says fears of a double dip for homebuilders are overblown.
Given the home buyer tax credit , Hovnanian says a "ramp up" in home sales should have been expected for March and April. With the credit expiring June 30 , the markets should have anticipated a "ramp down" in May and June.
"Both of those should have been discounted," says Hovnanian. "People are overacting."--------------------(scroll down for more)--------------------
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But with Hovnanian's $1.8 billion in debt and book value negative $3.47 per share, host Melissa Lee asked if the company will have liquidity should the downturn continue. Hovnanian says his company has been operating with considerable cash profits and has no concern about liquidity.
Hovnanian is optimistic about the housing market's future, citing a growing US population that will spur demand.
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There is too much volitility in the homebuilders, says Patty Edwards of Storehouse Partners. She prefers Plum Creek Timber , which boasts a 5% dividend yield.Page 1 of 4 | Next Page