The Price Of Lumber Continues To Crash

Down 6% today:


Not only that, the CEO of Standard Pacific Corp homebuilder (SPF)  filed an SEC S-4 document which showed he exercised compensation options to acquire 194,325 shares at $3.10 and immediately turned around and dumped them in the market at $8.91. The shares represented 20% of his holdings.

Homebuilder insiders are dumping their shares right now. The homebuilders moved up today on no fundamental news. Every time the homebuilders spike up, you short them. Cover part of your short when they drop hard, like they did last week, with the DJUSHB index dropping 20 points in 5 trading days. Then repeat the cycle. You want to be short the homebuilders when this market starts to really drop because a LOT of money can be made quickly.

5 thoughts on “The Price Of Lumber Continues To Crash

  1. Dave, a bit off topic . Have you been looking at the current
    water situation ? I think water could be the next oil. If you
    do research on this soon to be valuable commodity I will
    be first in line to buy a report. I’ve been looking at the space
    but have not found a conclusive way to invest. I think it will
    be bigger then oil. Just take a look at the attached
    link concerning Las Vegas. Remember when Vegas runs out
    of water and the hookers can’t bathe it’s game over !

    1. Yep – big problem for States west of Colorado. Going to eventually lead to water rights
      fights between Colo and Nevada/Cali. Fuck ’em

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