Thank you fellows!! I'll remember this one
In Latin languages "Toro" means Bull. Something tells me that Hoofy is looking at Toro (TTC) using a variant of "bull", as the company has done a truly pre-Spitzer sandbag job on the bovines. After "boosting" guidance on May 13, resulting in a 10% rally, today the company says that they will kick the next quarter because homeowners have gone AWOL due to the weather.
I am on the dark side of TTC via this "pairs trade" so I have no beef with the action. And Lord knows I have learned to take losses without complaining. But if I were long TTC this morning, I can assure you my former law partners would have a new matter on their desk.
You'd figure that companies would play "cleaner" these days. But apparently TTC did not get the memo that pumping the stock in advance of reporting bad news is not cool.
On a separate front, new home sales notwithstanding, please note that TTC has a greater than .93 (w/ 1 being the max) 1-3 year correlation with the Housing Index (HGX), and even longer and tighter correlations with some individual homebuilders. If after today's stunt one wants to believe in TTC's "the weather did it" excuse, please email me for some special deals on Mohave Desert real estate.
This is NOT advice Minyans, just venting my humble opinion on games people still play, in hopes that it adds value to the process.
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