KB Home Hit by SEC Issues (KBH, XHB)

Posted in pre-market 
October 12th, 2009

KB Home (NYSE: KBH) is being hit after the company disclosed in an SEC filing that the Securities and Exchange Commission is investigating its accounting and disclosure practices.  We show shares down over 5% at $15.60 as of 8:46 AM EST after closing at $16.46 Friday.  The 52-week trading range is $6.90 to $20.70 and average volume is over 4 million shares.  Volume is likely to increase substantially after the specialist frees up more shares.   While this is stock-specific and not a sectorwide issue that we can tell yet, we’d look at tickers LEN, RYL, DHI, TOL, PHM, MDC, and others.  The SPDR S&P Homebuilders (NYSE: XHB) is teh ETF that follows homebuilder stocks.  JON C. OGG

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