Tuesday, August 30, 2005

Homebuilder insider selling seen as a red flag

Homebuilder insider selling seen as a red flag - Home Construction - Manufacturing - Analyst - Economy - Markets/Exchanges - Market News: "'There has been record insider selling within the last 10 months across a broad range of homebuilding companies despite very few sell ratings by Wall Street analysts and the general perception by investors that the stocks are undervalued,' Richard Bernstein, the firm's top strategist, wrote in a note to clients.
Based on data going back to 1985, Merrill found that insider net selling at eight major homebuilders -- including bellwethers such as such as KB Home (KBH: news, chart, profile) , Ryland Group Inc. (RYL: news, chart, profile) and Toll Brothers Inc. (TOL: news, chart, profile) -- has hit record levels at some point in the last 10 months."
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