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

To: Spekulatius who wrote (36292)	12/24/2009 1:15:52 PM
From: Paul Senior	Respond to of 78774

Homebuilders: I chose MDC primarily because, per Yahoo, it has more cash than debt: MDC: $1.6B cash : $1.0B Total Debt TOL: 1.8 : 2.1 KBH: 0.9 : 1.8 Haven't confirmed accuracy of those numbers (Yahoo sometimes being wrong). I'm figuring that in a protracted downturn, MDC with its high cash to debt ratio will be a survivor, and could/will pick up market share. Of course, this may have nothing to do with putting a floor under the stock. MDC and all others could drop to earlier lows and stay there or worse. In the past cycle, I have used p/bk to value these homebuilders. I have read that some pro analysts who follow these stocks also use p/bk as a key factor. EV/sales I don't follow, but it may be even better, I don't know.