Savvy Trades and Investments

[cliffvb]

MHO NWHM
MHO had all kinds of great news in that earnings report. Besides that huge beat in earnings and revs, new contracts soared by 30% .their debt ratio dropped substantially and they have no borrowings against their $500 million revolver. Pretty amazing considering all the homes they have under construction now. Book value was up 21% yoy to $38.34, which is only a little below the current SP. This one remains cheap here, IMO.

I see NWHM reports tomorrow morning. Technically, this one is the cheapest builder out there at only .38X BV. Their problem is that they seem to consistently disappoint on earnings. They have taken steps to alleviate the situation by moving into lower price areas where they are building and expanding into AZ. It looks like the analysts gave up on them as I don't see any estimates out there. I took a gamble and did open a small position this morning to hold into earnings.