professor, what do you think of american homebuilders in your theme of k-shaped economy? i'm talking about affordable home builders like smith douglas homes, that looks like the equity is trading at 2-3x its normalized pre-tax income. i know you covered another douglas (elliman) on luxury side.
I stumbled my way into really good luck with American homebuilders when I saw the price of lumber crash. I listened to an earnings call in January, and they all said their showrooms were full and demand was unlike anything they'd ever seen. I bought BZH and FOR, but now only BZH is below book value. And BZH has management problems. I've been thinking about LSEA for a while as well. I believe I have an early writeup on them on the substack. I think the theme is solid, but the early inflection gains have been had.
professor, what do you think of american homebuilders in your theme of k-shaped economy? i'm talking about affordable home builders like smith douglas homes, that looks like the equity is trading at 2-3x its normalized pre-tax income. i know you covered another douglas (elliman) on luxury side.
I stumbled my way into really good luck with American homebuilders when I saw the price of lumber crash. I listened to an earnings call in January, and they all said their showrooms were full and demand was unlike anything they'd ever seen. I bought BZH and FOR, but now only BZH is below book value. And BZH has management problems. I've been thinking about LSEA for a while as well. I believe I have an early writeup on them on the substack. I think the theme is solid, but the early inflection gains have been had.
another good ONE professor
Thanks :D