Beazer Homes (BZH) just blew up again. Recently, I have been harping on the inevitable declines ahead.
Tonight, it is further playing out as usual. The rise, the distribution, the fall and the denial. Through it all, shameless promotion and lies. In the end, millions of small shareholders will own 100 share lots of Beazer that their broker sold them on ‘Value’. They will replace the thousands of insiders and bankers that created the paper during the long rise.
The uptrend ended a while back.
It was time to take Beazer off your screen 40 points ago (unless you truly know how to trde and short stocks and do it for a living).
So many great lessons in just this one stock chart:
You don’t have to catch the beginning of an uptrend or downtrend to make money.
Trends end. They END QUICKLY!
They can end badly.
Don’t fight the big price trends.
“Don’t trust Whitey” (in this case…any investment bank)!
BTW – great post from the Chairman on the subject of ‘The Beaver‘…I mean Beazer.