Yes -- we just finished Year One of the recovery - at least 3 more ( at 20% CAGR ) to get back to normal building levels. New home sales were up over 40% in West -- SPF's market -- where Existing Home Inventory is very very low.... people are turning to new construction ( no Investors, no short sales, no banks to deal with)... and you get what you want - fully renovated.
You are right on all counts -- Warranty and the Influence of Asian buyers on the West Coast -- I'm a long term investor since Fall 2011 -- I've sold a bit -- but will continue to hold for the next several years - as long as the fundamentals stay in place. Be careful, unfortunately the short position is distorted by amount of Convertible Debt outstanding... but there continues to be a lot of skeptics out there. California was one of the first markets to Rollover -- and is definitely leading the market back. The Bay Area -- especially Silicon Valley is back to record highs -- hard to believe. SD County still has a way to go... but the trend is great.
Sentiment: Strong Buy
Initiated with Buy, $68 PT at Wunderlich -- movement to 4G LTE Smartphone, Location Based Services --- will continue to drive reservations online... not just for 1% and business market -- they are Copying Priceline model --now targeting small restaurants -- control their websites/reservation systems.... the same way PCLN did with small hotels in Europe. A win-win for business owners and customers.
Back in October
TearLab Corporation (NASDAQ:TEAR): California passed a law that enables optometrists to perform clinical lab tests within their practice. According to the firm, the law will be a long-term positive for TearLab and its osmolarity system. Shares have a Buy rating
Sentiment: Strong Buy
"The US markets potential alone includes 50,000 eye specialists who see on average six dry eye patients per day, equating to a $1.8 billion opportunity." according the Cannacord
well another new high ! still believe this is a very long term trend --- the Commodity craze that ran from 2000 to 2011 was due in part to China building out it's infrastruture - airports, roads, railroads, shipyards, housing -- next 10+ years will be the rise of the middle class -- once they start buying Klennex, Toothpaste, etc.. they won't go back... GLTA
It is the Internet on Steroids --- the quality of apps in increasing dramatically -- speed, function, usefullness -- will drive a dramatic shift in consumer behaviour. The web 2.0 -- so many Apps are now better then their desktop counterparts -- FB, YELP, PCLN, EXPE, OPEN, TRIP
New Homes sales up 70% with prices rising 13% -- a great combination.
Toll Brothers -- talked on their called about the ability to raise prices -- haven't seen that in a long time.
Resale prices in Vegas -- up 25% on a price per square foot yr/yr -- now at $90psft (which is still down 50% from the June 2006 peak).
More good news to come. Lag of supply (hard to believe in the resale market) could constrain upward momentum.
SPF -- geographically well position in California and with first time home buyers bodes well.
Resale Price per square foot in Miami up 16% yr/yr -- up for 13 straight months, yr/yr... for SFH-- at $109 vs $192 peak in May 2006
Bought JNJ and AGN are flush with Cash -- both are looking for acquisitions -- and both have strong holds in Opthamology.. plus with a $1.0B + market potential for TEAR products (just in the US) it is a decent size acquisition either Company - both can easily push the product through their existing sales channel.
More to follow.