HOV Equity Offering Gives the Shorts an Out By Jim Cramer About this article: If you are a manager at Hovnanian , you are not thinking about earnings per share, you are thinking about surviving. That's why any rally with your stock is an opportunity worth taking, an opportunity to issue more stock. So what if the company bought a ton of shares higher when things were better, why not offer 14 million shares now, much lower, because going under gets taken off the table? Dilution means nothing to a company like HOV. Nothing. That's a term for shareholders, not for managers. They want to be able to keep building homes, and they know that the short-sellers are keeping their equity high enough to be able to put out stock at a more inflated price than they would otherwise be able to given the gigantic losses the company is reporting and has reported for the last five quarters. Two-thirds of... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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