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If you're thinking about investing in housing stocks, you've got to distinguish between a...

If you're thinking about investing in housing stocks, you've got to distinguish between a valuation trade and a fundamental one, veteran housing analyst Ivy Zelman tells Barron's. KB Home (KBH) and Lennar (LEN) are Buys as valuation trades, while home-improvement companies like Home Depot (HD) and Lowe's (LOW) are Buys on the fundamentals. Stay away from USG (USG) and Armstrong World Industries (AWI), Zelman says.
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Comments (1)
  • DagnyTaggart
    , contributor
    Comments (486) | Send Message
     
    KBH a value play. Surely he jests.

     

    I've got a company that makes $0 (about $2.5 billion more than KBH over the last 3 years) that I'd be willing to sell him for $500 million (about half the price of KBH). Now that's a value!
    3 Aug 2010, 02:09 PM Reply Like
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