Ntilda: Thanks for the posts regarding home builders.
Seems like on this thread, as on Wall Street, they don't get too much respect -g-. Except maybe for manufactured housing, not much discussion here.
From what I can tell, almost all of the stick home builders are undervalued. We'll know in about 18 months - if not sooner. I've recently posted that I've added to my positions in SPF and to WBB. I'm looking now at KBH. (I like the way they operate and that they - like SPF - are strong in the booming California market.) I've passed on Schuler (SHLR)-- they are a good play for the Hawaiian market, but that market is apparently or allegedly depressed and SHLR profits seem like they might be coming now from a merger with a firm strong in the booming Denver market. Occasionally, I'll review HOV as an East Coast play, but I've not bought. Similarly, I like UH as a "national" home builder, but I've never stepped up and bought. It looks attractive now too - especially I'd guess, if it could maintain its current volume. BZH gets mentioned here once in a while. Since I've already got some exposure to the group, I've not really considered LEN, DHI, or CTX.
I do also like ancillary businesses to the home builders. For example, raw land holders in California. This thread has discussed Tejon Ranch (moved up very nicely from its recent lows), Newhall Land (finally starting to build homes on its big tract), and Catellus Development (which I own and which stock has languished). Also in Florida, St. Joe has been mentioned several times by at least one knowledgeable person. Couple more were mentioned briefly on this thread also.
And the stuff that goes into houses, I'm interested in too. I'm passing on Pulaski Furniture (PLFC) for now even as it has a low pe and the stock is hitting new lows. Also passing for now on carpet manufacturer Mohawk Industries (MHK) which is near its lows and reporting good quarterly earnings.
And then there's property & casualty and mortgage insurance. But that's another story.
Paul Senior |
