A rumor that billionaire investor Warren Buffett was buying shares of Hovnanian Enterprises lifted the Red Bank-based homebuilder’s shares 12 percent last Friday.
But so far today, the shares, while up, aren’t going nuts.
According to BigCharts, the shares were at $18.70 in early trading, up 17 cents.
Even Friday, there was some discounting of the rumor, as reflected in an article on TheStreet.com.
From that story:
Two sources who closely follow the homebuilding industry said they would be surprised if the rumor turned out to be true.
” [Buffett] was never involved in past. I don’t think he would get involved now,” says one sell-side analyst.
A hedge fund source also expressed skepticism. “Housing has not bottomed yet, so why would he buy now?” he says.
