In an effort to unload inventory, Hovnanian Builders announced a $100K price reduction in many of its homes. I can’t tell you how many as its server is overrun with inquiries! The CEO was interviewed on Neal Cavuto’s show Friday afternoon saying that even with three times as many servers their internet site was overwhelmed. But today the stock rallied on the news, check out the chart using the symbol HOV.
Hmmm, prices falling, would that be deflation?
When Price and Supply don’t match something has to give, will this lead to more sales or perhaps auctions to clear out home inventories?
What does this say about best practices and inventory control that we study in managerial accounting? The lack of inventory control can result is severe adjustments….
Professor Elam 
Leave a comment