My most favored homebuilder continues to be SPF, though I haven't owned it for many months. I look to buy shares again when the sector isn't under so much siege, not sure when that will occur. I'd be a buyer at 30 bucks, but not sure it will dip that far.
Like MDC that you mentioned the other day, SPF's estimates have not dropped at all, other than a small dip in Q4 due to regulatory delays, and I like the way they run their business, attempting to avoid selling to speculators, and keeping their qualification process conservative. I have dropped by various properties in this area at different times, and always found the salespeople to be well versed in this strategy, which (IMHO) goes a long way toward improving the success of the overall company.
As for TUX, I think it's a low risk play on increasing land values, but since I did know that it is basically run by WNMLA, I hadn't bought shares separately. I certainly don't see a major problem with owning both though, as TUX stands decently on its own, with the asset of undeveloped land, and turning a small profit each year. Could be one of those that goes nowhere for a long time, then doubles overnight if they sell the land. |
