Before you cast aspersions, go listen to the DHI conference call embedded below.
You know that I am biased, favouring names like BZH, HOV, FBHS and USG. But there are at least 25 names that will rise as the housing market recovers. It’s simply a matter of mathematics, as America’s population increases, the need for more homes increases. We should build over 1 million homes in 2013, up from 750k in 2012. However, to get to a normalized market, we need to get up to 1.5 million.
Do you have any idea how high USG’s stock price will be if we get to 1.5 million new builds?
Ask Warren Buffett, the second largest shareholder of the company.
Here is a list of 16 names that fit a specific criteria, from my ‘Housing Resurgence’ screen inside of The PPT.
I searched for companies with positive earnings growth, 15%+ quarterly revenue growth, alongside 6 month and YTD share price performance stats.
It’s worth noting, ELLI, has become a battleground stock, despite their fantastic numbers. I suspect the stock will remain under pressure until earnings are reported in mid-February.
BTW: Your best possible trade here is to buy actual property, due to leverage.
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