HOV: HOVNANIAN (HOV) WORST IN BREED HOMEBUILDER. (SHORT HOVNANIAN!!)

The housing market is falling, consumer health is worsening, and the US economy has a huge risk of falling into a recession. For most investors these conditions have made the stock market a terrible place to invest in, in the past few weeks. You may have lost a bunch of the gains your portfolio had and are nervous about losing more. One way to not lose money in a down market and even gain a lot of money in a down market is by shorting stocks. The concept of shorting a stock can be confusing for many investors, basically by shorting a stock you are betting that the stock price will fall and you make money if you are right. Investors often also do not want to short stocks because shorting is risky. I want to give you short position ideas that are almost guaranteed to pay off and are not very risky. Last week I recommended shorting Home Depot (HD) as its business is heavily reliant on the housing market and with a falling housing market their sales would be hurt. This week I am also recommending shorting a company whose business is heavily reliant on the housing market and this company is Hovnanian Enterprises (HOV). Hovnanian Enterprises (HOV) is a home builder company. They design, build, market, and sell homes. These homes vary from single family detached homes, attached homes, condominiums, mid-rise and high-rise condominiums. With a miserable housing market you can probably guess that Hovnanian's business would be hurt. With less people buying homes Hovnanian will not sell as many homes and also not build as many homes, resulting in lower company profits. Companies' stock prices go up if the companies are making profits but if the companies aren't making profits then the companies' stock prices will go down. Hovanian's profits will almost defiantly be hurt if the housing market is bad so the stock price will go down, so short Hovnanian. Below are some data figures which I believe show that Hovnanian is one of the worst in breeds in the home builders sector. Growth: Earnings per Share Growth: .210.43% (Peers' Average: 35.70%) Revenue Growth: -27.08% (Peers' Average: 21.13%) Hovnanians growth figures are terrible. It's earnings per share growth is negative while its peers' is positive. Its revenue growth is also negative while its peers' is positive. Profitability: Return on Equity: -16.05% (Peers' Average: 19.65%) Return on Assets: -4.90% (Peers' Average: 5.50%) Return on Investment: -5.75% (Peers' Average: 9.08%) Hovnanians is not very profitable compared to its peers. Its return on equity is much lower than its peers. Its return on assets is also lower than its peers. Its return on investment is also lower than its peers. Hovnanian's earnings come out December 18th, the stock price will be driven greatly down up to earnings and probably even more after earnings. Hovnanian I even think may become bankrupt in the first half of 2008. Most of your portfolios have been hurt due to the latest market downturn, you probably are desperately looking for stocks to buy to make up for those gains. That is really hard to do in the current market condition, bad stocks will be driven down and good stocks will be driven down. Take the easy way to make profits just short a bad company and that company is Hovnanian Enterprises, Inc (HOV). Short (HOV).