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Stocks H / Hovnanian Enterprises


Subject:  Insider Activity - HOV Date:  4/11/2010  11:53 PM
Author:  Ronpad1 Number:  33 of 35

I've been looking at the housing market and which stocks might benefit most in the early stages of recovery. Looks like Beazer Homes and Hovnasnian are very spread out nationally and spurted a bit on the little bit of housing stability news.

Hovnaian (HOV) strikes me as having some great potential. The stock sold from the mid-20's to the mid-60's in the period mid-2003 to mid-2008. It is in the tank right now - and I am worried a bit about the fundamentals. Can it survive? Don't know.

What I do know is that the insiders of the company seem to be buying a load of this stuff from January through March 20th of this year. Including the new COO (Thomas Pellerito) who bought 300,000 shares, the founder of the company (Ava Hovnanian) who bought a net 50,000 shares, and the Chief Financial Officer (Larry Sorsby) who bought 40,000 shares on March 20th. Since mid-1st Quarter, the stock has climbed steadily and closed up last week almost $.50 to $4.81. It was in the mid $3.00 range earlier in the year.

Does anybody have any thoughts on this stock. I was a broker many years ago - and remember two things told me by my manager (1) insider trading (especially by the inside numbers people) was like miners watching a canary in a coal mine. When they started dumping, it was time to leave the mine. When they started buying, pay attention to the charts. (2) Buy when there's blood on the street. Sure is with this stock - Down from $70's to a low of under $1.00 in early 2009.

Anybody else watching this stock? I've taken a pretty good position from $4.10 to $4.64. Any suggestions?
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