Sector: Residential Construction
Fundamentals: DHI's ROE has dipped below the Residential Construction industry's average ROE over the last five years. DHI's 1 year ROA is 35.67% lower than the industry average, which may indicate that DHI has not used assets as successfully as its competitors have. DHI's long-term debt/shareholder's equity ratio has risen above the Residential Construction industry's average within the last five years. DHI's net profit margins have fallen below the Residential Construction industry's average over the last five years.
Technicals: Two Bearish Pattern Recognition as of Close May 09, 2008 as: 'Continuation Wedge (Bearish)' and 'Double Top (Bearish)' with target of $7.75 and $12.20 respectively. Also note that trendline on weekly chart has been broken with PPO bearish divergence. Attached image shows them.
Cost basis: Shorted at $14.91
Target: $13.15
Stop loss: $16.21 [Reason Parabolic SAR(0.05,0.5)]
Stop loss: $16.21 [Reason Parabolic SAR(0.05,0.5)]
Next Earnings: 24-July-08
Last Analyst Rating: Strong Buy (!!!)
Other comments: Shares of homebuilders fall on more signs turmoil in the housing market is not over (http://biz.yahoo.com/ap/080519/homebuilders_sector_snap.html?.v&quicken=2)
No comments:
Post a Comment