Whining like a four year-old…

September 14, 2003

You gotta love it when a company with a nearly $2 billion market cap whines like a four-year old over a change in accounting rules that they perceive to be unfair. But that’s exactly what Hovnanian Enterprises (HOV) is doing in its 10-Q filed late Friday. Management believes that the new rules on off-balance sheet obligations that were put in place to protect another Enron-like fiasco were “not clearly thought out for application in the homebuilding industry.” During the third quarter ended July 31, Hovnanian says it consolidated 9 VIE’s for $13.7 million, or pocket change for a company like Hovnanian. Total VIEs stood at $93.2 million at the end of the quarter, though the company doesn’t give details on what they were at the end of 2002’s third quarter.

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