Seeking Alpha

BAML likes the homebuilding industry, unleashing Buy ratings on D.R. Horton (DHI), Toll Brothers...

BAML likes the homebuilding industry, unleashing Buy ratings on D.R. Horton (DHI), Toll Brothers (TOL), Masco (MAS), and Owens Corning (OC).
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Comments (4)
  • Paulo Santos
    , contributor
    Comments (24833) | Send Message
     
    If there's a bubble, it NEEDS to be upgraded.

     

    That said, I too believe homebuilding will continue to recover. It's just that the stocks already discount the next 2 recoveries.
    11 Jan 2013, 09:22 AM Reply Like
  • PSalerno
    , contributor
    Comments (4068) | Send Message
     
    Recently I bought DHI , it is cheap by PE, PB, PS.
    11 Jan 2013, 09:42 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (24833) | Send Message
     
    Are you saying TTM P/E? There's something wrong with that, and EV/EBITDA is like 25 times... though DHI doesn't seem the worst of them.
    11 Jan 2013, 09:45 AM Reply Like
  • PSalerno
    , contributor
    Comments (4068) | Send Message
     
    The 3th quarter earnings of 2.47 are exceptional, probably there is some non-recurring item. It is not a big position, cash flow is weak, but sales are improving. I sold also some short calls spreads on LEN which looks overvalued.
    11 Jan 2013, 10:03 AM Reply Like
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