Replies to post #78689 on Savvy Trades and Investments

[bbotcs]

r59: There is NO question that professionals are fleeing cities for the suburbs, especially ones who live in small housing that was fine before the pandemic and they now find are too small to live comfortably when home all day.

They are fleeing Baltimore! Crime didn't bother them. But living in a unit or house that is too small does.

Buy housing stocks.

[cliffvb]

Home builders have definitely been in correction mode recently, many are down 8-10% in the last two days. Besides TPH strong earnings report, PHM and MTH also just announced great numbers and they are greeted with large sell offs too.
PHM beat by 19c with net new orders up 36%. MTH beat by 46c with new orders up 70% yoy.

I've been adding more in the group this morning. MHO is probably my fav right now. They report next week. Last quarter they beat by $1.00 earning $1.89. Orders in June were up 79% yoy and they also said in their last CC that surge continued into the summer.

[bbotcs]

r59: INVH Interesting

Just heard Josh Brown recommend this company on CNBC.
They buy and rehab high-end houses in the burbs in the West, Florida, Texas, and the Southeast. They just entered into a joint venture with a company to buy more houses. The JV also will provide management services.
INVH's debt is enormous but the free-cash flow is great, and unlike CCS, MHO, TPH, TOL and TMHC, INVH pay a dividend that yield about 2 percent.

Millennials are their customers, among others. This might be a great play for a year or two. I haven't bought any shares--yet.