A New Line of Business For The Homebuilders: Stock Trading

While some may argue that that homebuilders don't do a very good job building houses, one thing they know how to do well is trade their own stocks.  Some may remember back in 2005, when insiders at TOL sold over $164 million in stock just days before the stock hit its all-time peak.  By not holding that stock, these insiders saved themselves nearly $100 million.

Not only are insiders at the homebuilders good sellers, but it appears that they are good buyers too.  During the month of January, insiders at Hovnanian (HOV), purchased 389,000 shares of stock at an average price of $5.3.  Now only six days into February, HOV's stock is trading at $9.8 for an 85% gain.  Not bad for less than a month's work.