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WCI communities initiated at JPMorgan with a Neutral; shares lower

WCI Communities (WCIC) slips on a tepid initiation from JPMorgan today with a Neutral rating and a $20.50 price target. This runs counter to FBR Capital, who also initiated the shares today with Outperform rating. FBR says that owning WCIC gives investors "rifle access" into the state of Florida, as well as an opportunity to own one of the lowest-cost land portfolios in the public homebuilding sector.
Comments (1)
  • I have 2 friends who live in their Venetian Golf Club property in Venice and WCI is a first rate developer who has a lot of benefits for those wanting housing exposure. Also, per their ER this past week, their buyers are not particularly impacted by rising rates (they have a lot of cash buyers and those financing a mortgage are financing very little-exact figures are in their deck from ER).

     

    They also will be making a killing once they start selling the 500 lots at Sarasota National Golf Club which they acquired for a song. Sarasota National is a good footprint of an 18 hole golf course and WCI is going to start selling houses there in 30 days. This is a thinly traded stock so less subject to day traders which I like. It's under-followed right now but worth watching. I bought a lot in last months IPO.
    21 Aug 2013, 05:43 PM Reply Like
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