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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (27496)	7/27/2007 7:29:32 PM
From: E_K_S	Read Replies (1) \| Respond to of 78764

Hi Jurgis - I have bookmarked your homebuilder selection Meritage Homes Corporation (MTH). I still think the company can trade lower and I will wait for a buy entry around $17.00. I am familiar with Nevada real estate and recently homes that sold for $620,000 are now selling at $490,000. After listening to their conference call they confirm this as MTH was seeing the largest declines in Nevada off 74% this year. California was off more than 53% but Texas was doing good. Looking at the balance sheet the company has a strong balance sheet but debt to equity is misleading as the company has been marking down their current inventory. Book Value decreases as their mark downs continue but at some point their market inventory value will stabilize and the value investor will be better able to evaluate the value of their hard assets. Since MTH operates in many of the markets that are of interest to me and seem to be an efficient builder, this might be one to watch when the market turns. I think it is still too early to buy in the current cycle, this may be a good one to own when the time is right. EKS