Centex Corp (CTX) shares are down nearly 9% so far this
morning after the company said its its preliminary fiscal third-quarter results
show new home orders plummeted 80 percent while its backlog and closings shrunk
by nearly half.
The company cited abrupt and sweeping changes in the
economy caused unprecedented home-buyer hesitancy, which severely impacted
sales early in the quarter.
The company had suspended its dividend payouts in early
October to help preserve liquidity for its operations.
The Bottom Line
Shares of CTX lost nearly 60% of its value in 2008. The stock has technical
support in the $4-5 price area. If the company can turn things around, we see
initial overhead resistance in the $12 price range. We do not currently rate
this non-dividend paying stock. We would look elsewhere for better investment
Centex Corp (CTX) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well
as a detailed explanation of our ratings