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MKM Partners makes a bullish call on homebuilders, upgrading KB Home (KBH +1.8%) and D.R. Horton...

MKM Partners makes a bullish call on homebuilders, upgrading KB Home (KBH +1.8%) and D.R. Horton (DHI +1.7%) along the way. The firm expects new home sales growth to accelerate heading into fall, which in turn will lift valuations. Positive comments made by KB following its FQ2 report, together with equity offerings from Meritage (MTH) and Beazer (BZH), are seen as reasons for optimism. (Hovnanian)
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Comments (3)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
    I am a contrarian here. I plan to short this market, and the IYR, when both become insanely overbought (not that they aren't already approaching this realm).
    13 Jul 2012, 04:13 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1053) | Send Message
    I have to disagree. I personally believe the housing market has basically reached its bottom (or very close to it) and provided you have a multi-year time horizon, now is the time to take a close look at the homebuilders. I've been gradually stepping into ITB since mid-March and will continue to do so until fully invested. I'm not expecting miracles, but I think if you have the patience to wait, you'll be pretty satisfied with the results in 18-24 months.
    14 Jul 2012, 12:20 AM Reply Like
  • Getsome
    , contributor
    Comments (45) | Send Message
    Ok, So we have unemployment numbers at 8.2 percent after the numbers have been tweaked and contorted. The real unemployment numbers are at 17 percent. Then we have to take into account the six million homes in for closer the Banks will not release. Then we have the hoops one has to jump though to get credit as the numbers of those with poor credit encreases every week. So who is buying these homes? Headfake....
    14 Jul 2012, 03:21 AM Reply Like
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