Can anyone explain why Homebuilders are up over 100% in a year, while new home sales are up 8%? Class, anyone? Anyone?
The MBA reported Wednesday that its widely watched measure of home loan refinances, the MBA refinance index, fell 24.2 percent to 1783.0 in the March 8 week. Also, refinancings have fallen 21 percent from a year ago.
At the same time, the industry trade group's measure of demand for applications to buy a home, the MBA purchase index, fell 6.2 percent to 314.6. While they were off in the latest week, applications to buy homes were up 8 percent from a year ago.
No, my friend, wrong again. Earnings for 2000 were $5 something. Once again, BZH price has never been depressed. Give it a rest already.
be ugly. BZH is testing 50 day MA and it should bounce on the first try. But to me it is just a matter of time not an if, till it fails to bounce and then there is no stoping till $70.
<<<According to Value Line BZH was trading for
under $40 last March. Their info is usually
Not a short, lay off me already, would you?
BZH's warnings were half of what they are now so their P/E was the same as now. In other words their P/E has never been 4-5 as you are trying to say. The stock price has never been depressed. All of the homebuilders vaulted up due to EXTRAORDINARY confluence of curcumstanses: lowest interest rates in 60 years, record fast rate reduction, tax rebate, low energy prices, hystorically low unemployment, low building material prices, unusually warm weather, absence of real recession, absence of inflation, willingness of consumers to take on huge debt, nesting instict in the wake of 9/11, interest free car financing, absence of competing investments (fixed income vehicles, stock market equities)
Say goodbuy to them.
Use an analogy: record capital investing before Y2K, relaxation of the margin rules, FED pooring liquidity, the longest postwar economic expansion, investors willing to assume the highest margin interest in hystory, the lowest unemployment rate in hystory, venture capital at all time high, nation wide love for stocks --- result, tremendous spike in equity prices. Final result --- second longest and second deepest bear market in the history of the USA equity markets. The gains of 1997, 1998, 1999, 3/2000 were erazed COMPLETELY.
Homebuilders had a bull market of their own due to EXTRAORDINARY synergy of factors. Final results are remained to be seen. I'll cover BZH at $40.