- KBH is expecting to reverse a valuation allowance that will more than double the tangible book value of equity.
- KBH will take advantage of the later stages of the housing recovery more than its peers because of its focus on first-time home buyers.
- KBH has been experiencing increasing average selling prices and margins.
- This is a clear short squeeze opportunity.
- The macroeconomic environment remains favorable, as home builders have been reporting very strong results so far this year.