Homebuilders were murdered Monday. Investors seem to be anticipating more bad news when the government reports existing home sales data Tuesday. Meanwhile, industry giants Lennar (LEN) and KB Home (KBH) report earnings this week. Has the housing market bottomed?
Karen Finerman expects to see write-downs and says the real question for her is, what will be the magnitude of these write-downs.
She recommends avoiding highly levered companies such as WCI Communities (WCI) and Hovnanian (HOV).