Time To Enter LGI Homes

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About: LGI Homes, Inc. (LGIH), Includes: DHI, KBH, LEN, NVR, PHM
by: Caterer Goodman Partners
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Caterer Goodman Partners
Growth, Hedge Fund Manager, foreign companies, Tech
Summary

LGI Homes has fallen below a PE of 10 which is a good entry point for long-term investors.

Q3 earnings were solid and the outlook remains firm as a boost in active communities will boost sales.

The exchange of convertible debt to equity in mid-November contributed to the current better entry point, but also reduced debt/interest load.

LGIH is now the 10th largest US homebuilder and management is now aiming to grow the company to top 5.

Since we last wrote on LGI Homes (LJIH), the stock price has fallen about 15% from ~$83 per share to barely more than $70. Our tactical timing could definitely have been better; however, nothing has