Mathieu Lagarde

What Is Correct Way to Value Homebuilders?

I Agree that it is a simple analysis, my point is to give a warning that builder are not a value play right now. But keep in mind they are bigger because it is a bubble market and they won't build as many houses as the did in the past couple of year. The capital the have now can evaporate real fast if they have support unsold inventory and sold at loss. I had lot of commentary about this article and I will be honest with you that the correct way I should have done it is 2001-2002 eps plus a premium like 15-20%. Still It is not a value play for most of them.

The Housing Bubble: Buy for Cash Flow, Or Else...

Low yield exist only because lots of fools think that this time it is different, real estate will continue to go up and can not go down! Same as in 2000! The economist has a article a year ago about renting vs owning in the UK and the conclusion was that renting is a better choice. You have to the you homework in your down, with a present value and you will know which is best right now.