Stocks don't just pop 15% for nothing..... Something is going on here. Someone obviously knows something. Think about it... examine the chart. Go back over the quarterly results. Whats in store for earnings in November.....? Will we see $3 or $4 per share by the end of the year?
Pulte result. Have you noticed that LEN, and MTH were leading the homebuilding sector recently, and today PHM all with good profit beating and less revenue. http://finance.yahoo.com/news/pultegroup-tops-earnings-revs-orders-173005735.html This is what we all heard from conference calls after Q2. 'Sell less homes with higher margin.' RYL moved up over 5% with the earning report on Oct 29. SPF and DHI will follow. Nov is the CHCI month.
There are a few new investments or restructuring in homebuilding companies: AVHI, TPH, ... Those guys with big money seem to think homebuilding will win big time soon.
A Seeking Alpha report of the day.
•With interest rates already sharply lower than during Q3, investors look past the slowdown in new home orders last quarter at PulteGroup (PHM +7.6%) . Also reporting today, M/I Homes (MHO +7.6%) records a similar gain after new contracts of 869 homes gained 15% from a year ago.
•Not unnoticed is the average 30-year fixed mortgage rate falling 15 bps last week to a 4-month low of 4.13%.
•Other builders: Toll Brothers (TOL +2.5%), KB Home (KBH +2.9%), Ryland RYL, Hovnanian (HOV +2.5%), Standard Pacific (SPF +2.5%).
•ETFs: ITB +3.1%, XHB +2.4%.