D.R. Horton, Inc. (DHI)

[MiamiGent]

DHI D.H. Horton, homebuilder- a little DD:

http://stockcharts.com/h-sc/ui

*Great 10Q today- nearly all matrics solidly improved
*Healthy cash balance and have lined up plenty of cheap money
*Market leader- disciplined mgmt
*Sell affordable homes- favorable mkt segment
*Have own mortgage co & credit repair service- sidesteps sticky banks
*Favorable analyst ratings.
*PPS is 2.3x's book- reasonable
*Positive outlook for 2013- quote,"Great Expectations"


So why did PPS drop nearly 6% today?

*Profit taking- has had a v nice run this year
*Selling on concern for potentially higher capitol gains tax in 2013
*Concern about "fiscal cliff"
*Mkt was lackluster today


Thoughts:
*DHI is riding an upward trend in real estate
*If housing continues to improve (which I believe it will), there's room in the PPS.
*Good way to play R.E.

MG