Real Estate Bubble

[swampboots]

HCDI 2.80:
Possible case for HCDI investment before Jan.:

Had previously owned but always followed.
" If the real estate market conditions continue to be characterized by severe shortage of residential inventory, low interest rates and urban flight, we anticipate operating profitably on an annual basis for the foreseeable future."
https://seekingalpha.com/article/4469612-harbor-custom-development-inc-hcdi-ceo-sterling-griffin-on-q3-2021-results-earnings-call

Today they issued this PR:

https://seekingalpha.com/news/3776888-harbor-custom-development-to-buy-997-unit-master-planned-community-in-blaine-washington

This town is 33 miles from expensive Vancouver, and many commute from there to save rent.
I have not seen the place in Washington state, but $14000 average purchase of a unit is quite cheap from almost any stand point! I have followed this company which has toxic stock (dilution seems part of growth plan) , because they have grown from 20 million to 105 million rev by leveraging their stock for debt and operating expenses during their buying sprees, offset by some advantageous flipping. They seem to have maxed out all they could grab at cheap prices, scaring the heck out of shareholders, who do not know when their next dilution could hit. But they are actually masking GIGANTIC unrealized capital gains.
I could be wrong but I have almost all my investments in similar looking stuff without reviewing all of their material detailed data of their specific reasonable cash flow estimates, or net profit
projections. In brief comparing to a 7 million dollar 4% return on a 150 unit development ( I am involved with) diligently kept up to working class people standards who pay just $400-600 for a one to two bedroom apt in outskirts of Georgia, their lates purchase mentioned today seems "stolen".
So far they are still considered a low float stock, but that can end any time stock makes upward progress, advantaging a new stock selling? issuing spree. Yet, long term insiders own 24%, and think it may be eligible as a no brainer for at least a small Jan.effect buy or eventual
buy out premise?

And there is more!:

If this repurchase program last month still holds, it is even closer to being no brainer in long run? If true no dilution fear but they are not liable if they change mind?

The Board of Directors of Harbor Custom Development, Inc. (“Harbor,” “Harbor Custom Homes®,” or the “Company”), (NASDAQ: HCDI; HCDIP; HCDIW, HCDIZ) on November 3, 2021, approved a new stock repurchase program authorizing the repurchase of up to $5 million worth of shares of common stock beginning November 22, 2021, and continuing through May 22, 2022. The amount of the repurchase program represents approximately 17% of the outstanding shares of the Company’s common stock valued at the closing price on November 3, 2021.
“The Board’s decision to authorize a stock repurchase plan demonstrates their confidence in Harbor’s business and growth opportunities we see over the long term,” said Harbor President and CEO, Sterling Griffin.

The Company authorized management to enter into the trading plan with Piper Sandler in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of its common stock pursuant to the above-mentioned stock repurchase program (the “Plan”). The Plan allows the Company to execute trades during periods when it would ordinarily not be permitted to do so because it may be in possession of material non-public information because of insider trading laws or self-imposed trading blackout periods. Under the Plan, Piper Sandler has the authority, under the prices, terms, and limitations set forth in the Plan, to execute repurchases of shares of common stock for the Company. All shares of common stock repurchased will be retired and returned to authorized but unissued status.