Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (81702)	7/23/2007 1:56:14 PM
From: Think4Yourself	Respond to of 306849

40? You are very generous. I am expecting it to be trading below 20 within 12 months. Wouldn't be surprised if it decisively breaks below 40 just on this quarter's earnings. Maybe that is what you are saying? An awful lot of people are thinking about fair value for the builders based on where stock prices were in the past few years. I believe it is more appropriate to look at where they were in the early 90's to get an idea of where they are headed. The business conditions then were a little better than they are now. Centex was trading in the single digits then. I agree it will take some time for people to accept that the good times are over, business conditions are really ugly out there, and it's not getting better anytime soon. There won't be any homebuilders trading above $30 a year from now, unless there is some major event such as a merger.