High Tolerance Plasticity Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: The Ox who wrote (10831)	11/30/2001 12:08:03 PM
From: Sharp_End_Of_Drill	Read Replies (2) of 23153

My take on the home builders is that their PE should be about 5 in a good market. The fact that they are 7-9 in what many people consider to be the peak of a boom tells me they are about 50% overvalued right now. These guys are flying on the rate cuts, elimination of the 30 year bond, and last gasp greater fool move as evidenced by the analyst upgrades. I say let them run, and then short again. Don't underestimate the effects of the refi boom, but also don't forget the economy in general and long term valuations. In past sizable downturns the vast majority of home builders have gone belly up. History will probably repeat. Sharp

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next