Barrier Technology

07 September 2007

Mortgage Bail Out to Lead to Rally in Home Builder Stocks?

MSN Money's Jon Markman released an interesting viewpoint on the "Bush Mortgage Bailout" this week. He summarized Bush's plan as follows 1. convince Bernake to lower interest rate targets 2. direct a bailout to overstretched mortgage holders facing foreclosure 3. move the financial burden for the rescue of homeowners on the nation's banks - not taxpayers

Markman commented that if the market believes in the plan, there may be a rally in the shares of financial-services providers and home builders over the next twelve months - some big-cap banks rising as much as 25% and some home builders possibly doubling in value. He also commented that home-building companies' executives bought $15.9 million worth of their companies shares in August. "The last time insiders even came close to this level of buying, in Sept 2001, the sector rose 55% in value over the next six months with the S&P 500 advanced 10%."

At Barrier - we'll be interested to see how this plan plays out as well. If the mortgage rates do indeed decline, its another positive step in depleting the remaining empty inventory to make way for new building projects. If the potentially foreclosure ridden overstretched home owners are bailed out - that too would prevent growth in the unoccupied housing supply. If the stock market - in relation to home builder stocks - dramatically improves - that may restore some confidence in the investing public.Fire-rated sheathing, town homes, multi-family construction, housing market, small cap, otcbb, ibtgf, barrier, blazeguard, mycoguard, fire-rated paint, intumescent paint, mold, mildew, fire-retardant plywood, frt, sips, structurally insulative panels, fire-rated wall assemblies, commercial modular, modular home construction, green building products, LEED,


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Location: Watkins, Minnesota, United States

Barrier develops, manufactures, and markets proprietary fire resistant building materials designed to help protect people and property from the destruction of fire. Barrier's award-winning BlazeguardĀ® structural wood panels exceed International Building Code requirements in every targeted fire test and application. BlazeguardĀ® is coated with Barrier's patented, non-toxic, non-combustible Pyrotite formulation, which releases water when exposed to the heat of fire.