Savvy Trades and Investments

[cliffvb]

NWHM Loss of 4c vs loss of 8c estimate. although they had some severance expenses bringing the loss to 10c. Revenues were strong as I expected, but their gross margin was too low so they still lost money. They are taking steps to reduce overhead which is why they had severance costs in Q1. Backlog is also down yoy and revenue guidance for Q2 is down a little yoy too.

overall, I was mildly disappointed. Stock is so cheap now at 40% of BV that I can't see selling here. This one could become a buy out target for a large builder, although I don't know if mgmt would be interested either. Part of the reason that WLH was up so much yesterday, was the announcement that they are open to selling the company.

Bottom line, I think this stock is too cheap to sell but I've lost my appetite to add shares too. I haven't listened to the CC yet.

Oh well, great action in CCS on earnings more than makes up for this one.