Russell Upsomgrubb

Small Homebuilders: A Bargain vs. Book Value

BHS, back around November of 2005, had a tender offer for their shares at $55. At that time and currently, BHS was a subsidiary of Canadian conglomerate Brascan, now known as Brookfield Asset Management (BAM). Brascan tendered 10 million of their own shares of BHS, so I tendered all of mine. The stock has tanked since thenGuess who has been buying back the shares on the cheap since then? I wouldn't go near that stock. Foreclosures were just up 48% over last year. The top three states were California, Nevada and Florida. BHS operates in two main areas- California and the Washington, D. C. area. They only have 10 million in cash and 800 million in debt. The recession is yet to come