This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE! J.P. Morgan Collects Cash

KB Home Earnings Plunge, But Stock Hangs Tough

KB Home (KBH) announced that its third-quarter loss quadrupled from a year-ago period, as revenue dropped by 56% amid sluggish sales and falling home prices.

Revenue dipped to $681.6 million from $1.54 billion, as excessive inventories and less mortgage availability hurt sales across most markets. The scariest statistic reported was that half of the company's homebuyers backed out of their contracts in the quarter. Hopefully, these weren't speculators still sniffing out deals; that would only delay the inevitable housing bottom.

We recently removed the stock from our "recommended" list, but we have to say it was not an easy decision. The stock has been resilient, and if today's early indication is correct, we may have to re-evaluate our decision. We do like to watch a stock's reaction to news, and the homebuilding stocks have been unusually resilient. We'll keep you posted.

KB Home is not a recommended dividend stock at this time, holding a rating of 3.4 out of 5 stars.

JP Morgan Raises Cash Quickly With $10 Billion Offering

JP Morgan Chase (JPM) has priced 246.9 million shares at $40.50 each -- for total proceeds of $10 billion -- as the bank moves ahead in its purchase of Washington Mutual's (WM) assets.

At the completion of the deal, the price tag for JPMorgan Chase to acquire Washington Mutual is around $1.9 billion. The bank plans to write down Washington Mutual's loan portfolio by about $31 billion. JPMorgan Chase also acquired the once-mighty Bear Stearns (BSC) -- which was also forced to sell -- back in March.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs