Buying Homebuilder MDC Holdings For The Long Term

| About: M.D.C. Holdings, (MDC)

While it could be dead money for a while, MDC Holdings is a premium company within the homebuilding space and is selling for an attractive price.

MDC is a buy and hold, long-term growth play. Of all the homebuilders, MDC probably has the best balance sheet. Their land policy is extremely conservative, as the company avoids spec homes and doesn't purchase land until they are ready to build. The stock, at $50, is selling at a slight premium to book (around $47 and change). Given the company's conservative business approach, book value is meaningful, tangible and not at much risk, especially compared to many other builders. MDC is in a prime position to capitalize on opportunities within the industry as the shake out continues.

Disclosure: We own shares of MDC Holdings.

MDC 1-yr chart:


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