Re: House Builders
[ QUOTE ]
Seems like the last 2-3 months, the housing builders have just been getting punished. A combination of lending issues and an overall downturn in the RE market seems to be the catalyst. Isnt stuff like this cyclical? Is this a decent time to buy into this market?
[/ QUOTE ]
Yes, they have been, yes it's cyclical, no, no one can tell when it will turn, usually around Book Value historically, the sector trades btw 0.7-1.2x Book right now depending on level of distress and fin'l security.
12-yr high for short interest ratio...sector has returned about 20% CAGR since that date including this downturn. I find that somewhat interesting.
The sector will move up 6mos b4 biz improves, same as always. You want to buy these at high PEs [20+ now] and sell at low PEs as others have noted [2005].
Rinse, wash, repeat. No positions yet.
|