Price/Volume Alert: Gafisa S.A. (GFA, TOL)

Posted in General 
November 11th, 2008

Gafisa S.A. (NYSE: GFA), the Brazilian homebuilder was delayed on opening this morning.  There was increased selling in Brazil today, and it probably didn’t help that Toll Brothers (NYSE: TOL) in the U.S. said that the company cannot predict a profit in fiscal 2009.

This expected home weakness is sort of mind boggling that anyone would genuinely expect a housing recovery next year.  Obtaining loans has become rather difficult, GDP is finally starting to tank into the red, and some economists are predicting that we see 8% or higher unemployment in the U.S. in late 2009.

Shares of Gafisa have re-opened and the stock is down 12% at $8.86 on over 200,000 shares.  This marks another new 52-week low as the prior range had been $9.91 to $50.07.  Its market cap is still $1.16 billion and it does have stock options.  Average daily volume is 1.1 million shares.

Toll Brothers is down almost 4% at $18.20.

JON OGG

NOV, 11, 2008 (9:42 AM EST)

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