TheStreet.com TV Recap: Hovnanian Hapless

The only reason Hovnanian (HOV Quote) can talk about its cash flow being positive for 2008 is because the company canceled its preferred dividend, Jim Cramer said on TheStreet.com TV's Wall St. Confidential Web video Wednesday.

People have been saying that maybe the worst is over for the homebuilders and that Hovnanian has done a great job selling land, but this is not accurate.

"What they did is they screwed the preferred guys," Cramer said. "When you do that and then you trumpet the fact that you might be taken over, but you don't want to be with Toll Brothers(TOL Quote) and you talk about [how you're] very pleased with your cash management, I'm aghast. ...