Filed under: Major movement, Earnings reports, Bad news, Industry, KB HOME (KBH), Options, Technical Analysis, Housing

KB Home (NYSE: KBH) announced before the opening bell today that it posted a fourth-quarter loss of $772.7 million, or $9.99 a share — a much wider loss than analysts’ predictions of $1.08 per share. The company cited write-downs related to the sub-prime mortgage crisis in the earnings report. KBH Chief Executive Jeffery Metzger blamed continued “challenging market conditions” for the losses. If you think this stock won’t be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on KBH.

After hitting a one-year high of $56.08 in February, the stock has hit a new one-year low today. This morning, KBH opened at $17.76. So far today the stock has hit a low of $16.67 and a high of $18.86. As of 2:00, KBH is trading at $17.53, down $0.95 (-5.1%). The chart for KBH looks bearish and improving slightly, while S&P gives the stock a neutral 3 Stars (out of 5) Hold rating.

Continue reading KB Home (KBH) falls on ‘challenging market conditions’

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This entry was posted on Tuesday, January 8th, 2008 at 10:55 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.