BMHC ==> The Auggie Doggie Winner!

[bknight]

So what's your point? You think BMHC will continue to trend down? Let's hear your fundamental reasoning.

I view this as a technical correction and feel that BMHC is a very good value here. I've seen these things happen dozens of times.

Ernie:

I'm curious if you use stop losses in your trading scheme? I haven't been around long enough to know for sure.

[New-born baby]

His spokesman

Ernie:

I'm curious if you use stop losses in your trading scheme? I haven't been around long enough to know for sure.

Ernie's gone tonight, so I'll give you an answer, and he can answer more fully later: no. He has complete confidence in what he buys. He knows it will go up. He uses no stops.

[mrmarket]

Ernie's gone tonight, so I'll give you an answer, and he can answer more fully later: no. He has complete confidence in what he buys. He knows it will go up. He uses no stops.

Couldn't have said it better myself.

[bknight]

Couldn't have said it better myself.

Good luck on this one. If I had some spare mragin, I would buy some as I think it is way oversold.

[mtm]

I technical look from a weekly chart for BMHC.

Negatives:

1. Heavey volume at top
2. Topping tails
3. Heavy volume confirmed (negative) with heavy dowside volume
4. Wide range bar down

Positives:

1. X1 trendline still has stock in bullish uptrend
2. Home builders have seen this sell off twice and rebounded (excluding the volume which could prove to be key)

Just a heads up for some of you non-TA's.

[IIC]

Another Non-Technical view...Barron's BASHED real estate today again...Whether you agree with them or not...they have a lot of "emotional" influence...IIC

[mrmarket]

Another Non-Technical view...Barron's BASHED real estate today again...Whether you agree with them or not...they have a lot of "emotional" influence...IIC

I've made Barron's my girlfriend on more than one occasion. Even if real estate is cooling down (which I don't believe is happening) who's to say that it won't perk right back up again?

[IIC]

I've made Barron's my girlfriend on more than one occasion. Even if real estate is cooling down (which I don't believe is happening) who's to say that it won't perk right back up again?

Ernie...I wouldn't be surprised to see a rebound at some point...but interest rates are gonna be a killer over the next few years...just a matter of time...Doug(IIC)

[New-born baby]

Tear jerker stock

Another Non-Technical view...Barron's BASHED real estate today again...Whether you agree with them or not...they have a lot of "emotional" influence...IIC

Please, IIC, you are making me cry
This BMHC has taken the biggest beating of 'em all. Look at the chart. Right now she is sitting on gap support. It might hold against one market test, but if it gets pounded twice she'll shatter like glass. I like this stock at current levels. But the question is whether or not the rest of the market likes this stock at current levels.

[mrmarket]

Please, IIC, you are making me cry
This BMHC has taken the biggest beating of 'em all. Look at the chart. Right now she is sitting on gap support. It might hold against one market test, but if it gets pounded twice she'll shatter like glass. I like this stock at current levels. But the question is whether or not the rest of the market likes this stock at current levels.

The market is, incorrectly, getting way ahead of itself here. Taking macro factors like a slight increase in interest rates and a strong job report and translating this into a big drop in earnings for BMHC, KBH and TOL is a bit too clairvoyant for me.

As an investor, I like to wait and see what happens to a company's earnings. Last time I checked, they were all growing handsomely. I'm not afraid of the market. On the contrary, I have seen this song played before with other homebuilders in my string of winners.

Go back and look at the chart of DHI over the period that I owned it and also look at its earnings over the same period.

[lemonjello]

I'm new following the Huge One's picks, but if there're options available on a stock you could try doing a spread. E.g., on BMHC I bought the Sept 80 calls / sold the 90 calls and even tho the stock took a slide I'm definitely down a lot less than having bought the stock directly. You give up a small amount of potential profit but limit that sinking feeling you get when you see BMHC sliding. Since MRMARKET usually takes out only 15% anyway the option selection can almost mirror the stocks upside gain.

[mrmarket]

I'm new following the Huge One's picks, but if there're options available on a stock you could try doing a spread. E.g., on BMHC I bought the Sept 80 calls / sold the 90 calls and even tho the stock took a slide I'm definitely down a lot less than having bought the stock directly. You give up a small amount of potential profit but limit that sinking feeling you get when you see BMHC sliding. Since MRMARKET usually takes out only 15% anyway the option selection can almost mirror the stocks upside gain.

Sounds like a terrific idea. I'm not that smart though.

[spikefader]

I'm new following the Huge One's picks, but if there're options available on a stock you could try doing a spread. E.g., on BMHC I bought the Sept 80 calls / sold the 90 calls and even tho the stock took a slide I'm definitely down a lot less than having bought the stock directly. You give up a small amount of potential profit but limit that sinking feeling you get when you see BMHC sliding. Since MRMARKET usually takes out only 15% anyway the option selection can almost mirror the stocks upside gain.

Ya know, that really is clever of you lemonjello! And for anyone not willing to sell calls, what kind of play would you recommend as far as buying puts and calls together?

And I guess it should be noted that if one does play an each way option play for these picks, one must realize that should the stock stay stagnant you will lose premium as time progresses. The way to make the money is if the stock moves.

The more I read about options the more my head spins and I realize there really are some very clever options specialists out there. There really is a lot to it.

[mrmarket]

Titan Omega and I sometimes buy call options on MM picks. We use the money we earn to finance gambling trips to Atlantic City. As a matter of fact we'll be there in less than 2 weeks.

[IIC]

I don't know if any of you know who this guy is...He and have very different investing philosphies...But he is one of the sharpest Investors I know of:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1242420&cmd=show