June 16th, 2010 8:46 AM by BILL WILBANKS
This is not big news I guess since they have both been running at Penny Stock levels just under a dollar to just over a dollar a share quarter after quarter and other than saving the annual fee to have a seat on the exchange I'm waiting to find out why now and what ramifications if any it will have in the short term strategy for these guys. It may be nothing more than house cleaning and a forgotten footnote.
Hey, the $8,000 first-time buyer tax credit that front loaded last minute sales ended April 30th. Why would we be shocked that annualized housing starts are down from 659k in April to 593k in May and new permits down to 574k. May single family starts are down 17.2% which is the largest decline since 1991. Are there two people out there that didn't see this one coming? Old news in my opinion. The sooner we work off the inventory the better for existing homeowner values and everyone else in the business that have been hampered by an over abundance of product out there. I just feel bad for the construction industry worker and supply industry that has been in a virtual job lock out for a couple years now.
Side Note: Fixed rates appear to be back down 0.125% to yesterday mornings level. So the afternoon's 0.25% to 0.375% point hit was recovered this AM.