Book Your Gains at This Homebuilder Along with Insiders
By
Michael Brush
May 25, 2005
Shares of Orleans Homebuilders (OHB)
have advanced 11% since we suggested picking up the stock on March 16
because of a positive insider buy signal.
That’s a pretty decent gain in two months of ugly trading. But now three
insiders – including chief executive Jeffrey Orleans – are bailing.
So I’d sell too.
Insider selling is never a sure sign a stock will retreat. But given the
overheated nature of the housing sector and the chance that mortgage rates
could be headed higher, it might be wise to err on the side of caution with
this one and take your gains.
advertisement
Since May 10, Orleans insiders have sold $530,000 worth of stock for prices
between $18 and $21.79. Still no sign of selling at Comstock Homebuilding
Companies (CHCI),
the other homebuilder with insider buying featured in our March 16 piece (http://www.investorideas.com/insiderscorner/Articles/Housing_Stocks.asp).
And insiders are still nibbling (albeit selling, too) at other homebuilders
like Beazer Homes USA (BZH)
as recently as May 11 – a positive signal for the group.
Disclaimer
At the time of publication, Michael Brush did not own or control shares in
any of the companies listed in this column. Mr. Brush is an independent
columnist for this web site.
For more on Insiders Corner disclosure, see the disclosure section in About
Insiders Corner:
http://www.investorideas.com/insiderscorner/. InvestorIdeas.com
Disclaimer:
www.InvestorIdeas.com/About/Disclaimer.asp. InvestorIdeas is not
affiliated or compensated by the companies mentioned in this article.
|
|
