Everyone is talking about the AI bubble...but I'm honestly baffled at homebuilders over the past 5 months. Past two earnings have shown declining margins (rate buybacks as opposed to price drops). QoQ cancelation rates of 20 to 50%.. Increasing inventory, and reduced future orders....YET we're sitting at nearly ATH on pretty much any ticker (DHI, LEN, KBH, TOL, you name it).
Granted I lost my ass going long on puts so I'm slightly jaded...but I still cannot see a bull case for these prices unless WS is easily tricked by their obvious and unsustainable buy down tactics, or somehow sees value in parking their money in these for 5 years down the road at which point they MAY reach peak covid purchase levels.
Feel free to explain to my denseness...
[link] [comments] https://www.reddit.com/r/stocks/comments/13rva6l/explain_homebuilders_to_me/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
