Brought some NWHM in the low 8.80's. Here is what I like.
1) I expect earnings for q2 to be in the .10-.20 range. So NWHM is a second half story, but it is a good growth story nonetheless.
2) I expect about $1.50 for fy 16 which means the stock is way too cheap I feel FV is around $15.
3) Trades under book value, so cheap from that perspective, isn't my reason why I'm buying it, but other would buy for that reason.
Conclusion: I think NWHM is very attractive after selling in the 11's when I took profits I decided to buy back in the upper 8's as I find the risk/reward very attractive again for the next 6-12 months at current prices in my opinion. All is just my opinion, and I could always be wrong though.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.