Replies to post #88067 on Savvy Trades and Investments

[gilead23]

Do you have an opinion on how long the big run in housing lasts? Still bullish on homebuilders?

[littlejohn]

Building, Lumber broke below $1,000 on Monday...


https://finviz.com/futures.ashx


Still likely that lumber needs

to drop back below $700 level

to stabilize building with more

customary, albeit still high,

lumber pricing...


Aluminum and Copper are also

highly priced...


Cement cost rise is likely driven

by higher fuel costs for delivery...


so we watch...LJ

[SSKILLZ1]

TMHC

I purchased Some TMHC here at $23.59 today. Here is what I like.

This homebuilder has gotten killed, but I do like this stock here alot. Stock is trading now under 5 times earnings estimates and is waaaaaaaaaaaaay oversold with a rsi around 27. Stock is a very attractive play at this point. I feel FV is probably about a 7 multiple which next years earnings according to analysts are expected to climb to $5.59 (So mid to upper 30's is what I come up with), so about 4 times those. Maybe I'm wrong, but I do like TMHC alot and believe the synergies will continue to kick in in the back half and into 2022, which is a plus that is going to happen regardless what the housing market is doing in my opinion. All is just my opinion, and I could always be wrong though.