KB Homes Addiction to Land

KB Homes (KBH) is a land junkie. They have an insatiable or uncontrolled drive to acquire land regardless of its economic value. Today in the conference call Chief Executive Jeffrey Mezger commented on the SEC investigation in their land valuation practices. The earnings release also disclosed that they are still acquiring land. The outlook for housing and consumer spending continues to look grim. These guys are a one trick pony. Who has the strategic vision at KB Homes?

Disclosure: No position in any stocks mentioned in this post.