And "everyone" thinks the next two are Beazer (BZH 5.81) and Hovnanian (HOV 6.61). At least that what the credit default swaps say.
But take a look at the "unusual" owners of BZH.
BZH has 39.23 million shares outstanding. 25 million shares are already shorted in BZH. So many shares are shorted illegally that the institutions hold 53.9 million shares or 14 million more shares that currently exist!
Homebuilders going chapter 11? Hardly an original idea! But the companies need to survive, otherwise the value of the NOL (net operating loss carryforward) is gone with a change of control.
So these homebuilders will just plod along at the bottom.
But does anyone think that the Fed would ever force these shorts to make an honest delivery?
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