is ridiculous. The balance sheet is solidified (switched from short term to long term debt), the earnings are consistently setting records, back-orders are increased, current PE under 8, and the price is going down?? I just bought more, and now have 2600 shares. I figure this one is under the radar screen to most in the market (like this board), but I am confident the co's continued execution of their business plan will result in stock catching up eventually. It was higher fifteen months ago than it is today, and things are MUCH better now for the co than they were then. Short of some disaster in the company, I cannot see this being under 35 in six months, and a 40% return over 6 months is fine by me.
I am pretty much talking to myself, but I just backed up the truck and loaded up. The news that I was wondering about, mysteriously causing this stock to drop, appears to have been a) getting the credit line increased from 300m to 375m, and b) the purchase (albeit for an undisclosed price, which I do not like) a small Baltimore builder. Big whup, the co is about to report over $4/sh in earnings for the TTM, and so the PE is about to be under 5.5. I think they can buy the occasional small company and finance the debt to acquire a co building about 120 houses a year. This valuation makes absolutely no sense to me. I have loaded up, most recently at around 22. I note the close today was 21 1/4. If I was not already loaded up, I have have 4,000 shares, I would buy more. As it is, I will just wait for earnings and a turn around and be patient, this co will rise far from here.