This company is continuing to perform amazingly well. The one year target price was just raised to $85 by NV Vollemaan. I would expect others to follow suit soon. This company is a particularly Strong Buy among the Strong Buy titans.
That was one hell of a bump. Stephen Kim of Citigroup fame upgraded BZH with a price target in the $70 - 90 range in 2006. There are so many people being paraded one after another on CNBC calling a bottom in housing. Many of these same people were calling a bottom two years ago. It is so pathetic. Even IF housing has bottomed many of the builders would not survive. Now anybody with an IQ greater than their shoes size knows that is not the case and there is a lot of pain ahead for the builders. Cramer has been pumping the builders almost every single day. One of these days we will read about him being assaulted. It is just a matter of time.
What amazes me about BZH is despite all of the lawsuits they have yet to make any estimate of potential losses. They are REQUIRED to setup a contingent liability. Their auditors are doing a great job.
I lightened up before the split. Is it time to get back in full force? What is amazing, mortgage rates continue to stay down, even with Greenspan raising interest rates? Do you know what is causing this stock to move right now? Good Luck to you.
I don't think that the recent decline in stock price made much sense. There was a lot of empty hype about the stock split which really shouldn't have occurred and it pulls in the wrong crowd and causes some volatility. Those folks are mostly gone now. Investors that are looking at the BZH business almost have to come to the conclusion that BZH is a good buy in the $50-$60 range. I am counting on those people to carry this stock forward in the coming months and years. No huge jumps, just some common sense price increases.
There are ten million shares short this stock. I think investors saw a write-off and a lawsuit settlement as a negative and considered BZH the weakest homebuilder and a good short candidate. All that is behind now and this company has a large backlog and easy comparisons going forward. Similar in size to SPF, which I also own, this company has a smaller market cap but about the same earnings power. Looking for $2,00 in earnings or more every quarter looking ahead. Like Alex on the PHM board I'm looking forward to the shorts losing big.
People are still trying to figure out Q2 earnings released last week. BZH guided to $7.00 to $7.25 for the year, which ends in Sep. meaning about $4.50 in earnings for the next two quarters. This company has a PE of five and a growth rate of about 50% in the coming quarters, including next year. Earnings estimates have not been updated in yahoo consensus est. but are way below what the company has presented.