This is where KB Homes bottomed earlier (around $15/share), so I'm averaging down. My original thesis was that KBH would be a long term buying opportunity. So, with my paltry sums of cash I'm collecting shares.
According to the 2nd quarter conference call, they are still reducing inventories and stockpiling cash. I still believe this is the best strategy for the big home builders during this downturn.
lessons: I did get started too early.
I should have sold when I was up 5%, and bought back in now.
--Brad
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