Been trying to evaluate HK.............fast moving, fast growing, lots of debt.
Cash flow could end up @ $600 -700 for the year, which is good. Debt was $2.7 billion on June 30, who knows where that'll end up for the year. Debt around 4 X cash flow, an aggressive, but not insane number. Looks like they'll want to spend more on capex and land buys than cash flow will generate. So, that means more debt or equity offerings for the time being.
Summary.........looks OK in the low 5.00s, but only for a speculative position (maybe 3-4% of your portfolio). Interesting, but very aggressive and debt laden company.
Let's talk numbers.. HK revenue was 816% that of last yr.. margin at 74%.. Projected EPS of 80%.. revenue growth 28% for last 5 yrs... yes, they have debt and yes there was an offering, but this company knows how to make money has a good track record. You fellas can sit on the sidelines, but I am taking a small position ... Best of Luck