Looks like we could be in for another jump in price. Again, SPF had a solid last quarter, the markets that they are in continue to outperform the national market and with the higher price homes they offer, there will continue to be a opportunity for additional margin as we saw last quarter when their margin grew.
$9.00 would be a nice surprise by the end of the week. Again, SPF had a solid last quarter, the markets that they are in continue to outperform the national market and with the higher price homes they offer, there will continue to be a opportunity for additional margin as we saw last quarter when their margin grew.
"Investors bearishly selling these stocks in November fail to understand the post-crisis model the home builders are following. They are carefully cherry-picking locations, metering-out their home construction and sales, and catering to more-affluent buyers. The mantra Location, Location, Location has never been better applied. If investors want to assess the builders' future profitability, gauging their prospects by extrapolating national statistics on the housing recovery is only part of the story.
The builders' actual business continues to be solidly profitable - bullishly so. As soon as a metro area begins to "heat up" with job growth, they move in - either by starting a new home community; or by acquiring a local private builder with a stash of lots and land that is either for or under development (entitlement, roads, sewer, utilities hook-ups, etc)."
From a recent article...prospects continue to look good for SPF.
Another strong start of the day for SPF. Again, financials look good, and housing continues to be strong in the markets that SPF is in. Shorts will have to start to cover at some point soon.
There must be something going on with this big of a jump in volume and price...only thing coming up that I know of is the shareholder meeting this Friday. Is there anything going on with new applications for their technology?
No, but the fundamentals behind the stock and the strong housing demand in the markets that SPF is in will make it go up...plus at some point, the shorts with start having to cover.
Looks like another great opportunity to buy...recent earnings report looked solid, stockholder equity increased by appx. 150m and housing sales in the markets that SPF operates continues to be strong.
With the possibility that IO will wind up paying more than the $10m they have set aside for the judgement against them, plus the drop in new offshore drilling exploration, the short term outlook for IO is a big question mark!
I'm guessing that they lost some of the lower pricepoint volume by moving upscale...and with that the improvement in margins(25.3% in 2013 vs 20.2% in 2012). My guess is they can live with the miss in sale expectations(they were still up 61% vs 2012) if they can continue to beat concensus on the bottom line. And the higher pricepoint homes will be less sensitive to mortgage rates over the long hall.
Someone may have had trouble reading the tea leaves on today's earnings release. Higher sales, higher margins, higher pricepoints, higher backlog...looks like a great quarter and balance of the year to me.
The numbers for the recent quarter should be strong, reflecting the continued rebound in new housing sales in SPF's key markets. I think we'll see another big bump in a few days.
With the housing market still HOT in the states that SPF operates, I would expect a positive surprise with the end of October earnings release.
I'm guessing that since they have not drawn anything on the Credit Line and extending the Credit Limit at the current rate, may mean that there is an acquisition coming...just my opinion.