Jim Cramer added home builder Hovnanian Enterprises (HOV) to his “Sell Block” following the company’s weak earnings report. Hovnanian reported a $2.67 a share loss, unit orders were off 38% year-over-year, and cancellation rates on home orders were 33%. Analysts had been looking for a loss of $1.68 a share. Cramer explained that Hovnanian issued 14 million new shares of stock in May, which is very dilutive to current shareholders. The company also sold $600 billion worth of bonds with an 11.5% interest rate. Cramer said the company’s balance sheet is horrible with $2.5 billion in senior debt and only around $677 million in cash. He mentioned that HOV is going to need financing to survive and the company is sacrificing future profit growth to pay off interest. “Hovnanian is a lot more expensive than it looks,” he added. Cramer finished by saying the company is going to have a tough time making it. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!