Rumour: Warren Buffet putting money into Home Builders

M

makloda

http://www.reuters.com/article/topNews/idUKN1331819920070713?rpc=44

UPDATE 1-Buffett rumors lift Hovnanian, home-builder shares
Fri Jul 13, 2007 12:50PM EDT

NEW YORK, July 13 (Reuters) - Shares of Hovnanian Enterprises Inc. (HOV.N: Quote, Profile, Research), the No. 6 U.S. home builder, rose sharply on Friday as rumors swirled that Warren Buffett's Berkshire Hathaway Inc. (BRKa.N: Quote, Profile, Research) would buy an interest in the struggling home builder.

"There is talk that Warren Buffett is buying a stake in Hovnanian," said Jon Najarian, co-founder of optionmonster.com. "We think such a move by Buffett would clearly signal a bottom is finally in or near this battered housing sector."

Hovnanian shares were up 8.4 percent, or $1.39, shortly after noon, at $17.94 on the New York Stock Exchange after rising as much as 14 percent earlier in the session. Hovnanian shares were among the top percent gainers on the New York Stock Exchange.

That helped other home-builder shares climb. Standard Pacific Corp. (SPF.N: Quote, Profile, Research) shares were up nearly 4 percent, rising 69 cents, to $18.23. Shares of KB Home (KBH.N: Quote, Profile, Research) were up 3.2 percent, or $1.14, at $37.33.

"That's what's driving it and of course many of these stocks are heavily shorted so any type of rumors gets the shorts to immediately start covering," Jim Wilson, JMP Securities analyst said.

The Dow Jones U.S. Home Construction Index (.DJUSHB: Quote, Profile, Research), a yardstick that measures home builder performance, rose 3.4 percent.

Buffett was not immediately available for comment. His assistant, Debbie Bosanek, declined to comment, saying Berkshire does not discuss what it is buying or selling except when required.

Investors lately have taken interest in U.S. home builders. Carl Icahn is in a battle to take over WCI Communities (WCI.N: Quote, Profile, Research), a builder of high-end homes and condominiums chiefly in Florida.

Earlier this month, hedge fund Moore Capital disclosed a 5.08 percent stake in Beazer Homes USA Inc. (BZH.N: Quote, Profile, Research), the No. 7 U.S. home builder.
 
Quote from otcstockfund:

this is just as credible as private equity rumor 6 months ago
More...

Exactly...Buffet isn't likely to be buying into an industry that keeps falling with no end in sight as of yet.
 
"There is talk that Warren Buffett is buying a stake in Hovnanian," said Jon Najarian, co-founder of optionmonster.com. "We think such a move by Buffett would clearly signal a bottom is finally in or near this battered housing sector."



SIMPLY AMAZING NEWS. This is what im talking about, it takes one guy worth billions to make a decision thinking that the bottom is in and out of no where these homebuilders rise. This is getting pathetic....it really is. People need to wake the F$%k up!!!!!
 
Is Najarian in bed with Hovnanian?

http://www.reuters.com/article/topNews/idUKN1331819920070713?rpc=44

"There is talk that Warren Buffett is buying a stake in Hovnanian," said Jon Najarian, co-founder of optionmonster.com. "We think such a move by Buffett would clearly signal a bottom is finally in or near this battered housing sector."

http://sec.edgar-online.com/1997/02/27/00/0000950130-97-000752/Section14.asp

On March 1, 1990, the Company sold all of the assets and liabilities of its wholly owned engineering subsidiary Najarian & Associates, Inc. ("N & A") for $3,600,000 to Najarian & Associates L.P., a partnership consisting of the employees of N & A. One of these employees and former President of N & A was Tavit O. Najarian, the son-in-law of Mr. K. Hovnanian, Chairman of the Board of the Company. At the closing, the Company received a cash payment of $720,000 and a $2,880,000 note.
 
Quote from SiSePuede!:

Exactly...Buffet isn't likely to be buying into an industry that keeps falling with no end in sight as of yet.
More...

Sise,

Suppose he did? WEB would have no qualms about lending his shares short and collect the interest. The goal would be to collect the interest till the industry turns around.
 
would make sense in that stocks are trading at or around land value. could be a call option till next real estate cycle.

Quote from otcstockfund:

this is just as credible as private equity rumor 6 months ago
More...
 
Buffet can afford to wait, thinking that eventually it will be worth more than it is today. It probably will be. Gates and Buffet recently bought some home builder stocks (3, 6 months ago?).
 
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