Bernanke to the Rescue: Homebuilders Bounce - For Now

... a whole new round of 'value investors' pushed the builders higher as they, completely ignored what David Seiders, the chief economist of the National Association of Home Builders [NAHB], said only last week.

"Housing," Seiders warned last Tuesday, "is in its deepest, most rapid downswing since the Great Depression."

But more often than not those former big winners will likely turn out to be nothing more lead weights around the ankles of those bargain hunters as the shares of those companies continue to get 'cheaper'.

...

... according to historical analysis, on average the sector still has a risk of about 50% to the downside as gross revenues fall, margins shrink, and their PEs return to 'normal'.