Tom Reese/Paul Rubillo, Dividend.com
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 opportunities.
Centex Corp (CTX) does not currently pay a dividend.
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