Hovnanian Enterprises announced it's running a special sales promotion this Friday through Sunday, with the home-builder offering price incentives of as much as $100,000 to try to lure buyers into the lackluster housing market. The event is called Deal of the Century, and the 72-hour sale will take place in 31 different communities around the U.S. Hovnanian hopes to sell 1,000 homes as a result of the special deal.
Meanwhile, CEO Ara Hovnanian told Bloomberg that the slumping housing market's bottom is very near but I think it's going to stay along the bottom for a while before a recovery, which he doesn't expect until 2009.
HOV is up more than 1% this morning, but the struggling home-builder has lost about 70% year-to-date. The stock faces overhead resistance from every one of its 10-unit and 20-unit moving averages. As a result, investors are understandably wary of HOV its Schaeffer's put/call interest ratio rests at 1.58, higher than 74% of other such readings taken in the past year. Similarly, HOV bears have sold almost 60% of the stock's available float short, and analysts have not awarded the stock a single buy rating.