D.R. Horton, Inc. (NYSE:DHI)

Housing play

PE 22-- PEG .95--- 23% Revenue growth est. Business is getting brisk. Rising earnings revisions.

Growing home builder -- housing market is doing well (at least until the next bubble).

It is still cheap after the huge run. I own this one in RL from 12 and change. Was thinking about selling but since I have come this far it should actually be less risky now than it was then. Compared to a more "popular" ticker like LEN it is still selling at a discount.

Construction in general, and home cons. in particular, will make an accelerated comeback from their 5 yr slump. The reasons behind are increases in financing avail. from cleaner lending inst. and improvements in employment, where people will require to resettle to find better jobs. 2012 was good; 2013-14 will be as good or maybe better

Housing is back!

the housing market has already found the bottom and starting on the way back up. Although there tends to be a plateau in this part of the real estate cycle, home builders are the first to benefit. I project numbers will continue to rise for years to come.

Real estate coming back.

Do we really think that US housing has somehow decoupled from the global macro economic problems we face? I think not! Housing has another leg down...

inventory levels are lower than they have been in years, part of that is the banks holding properties in anticipation of rising home prices and part of that is the lack of sellers for the same reasons...how does that play out in real life? buyers have to outbid each other to overpay for a property that won't get through the financing process because the property is listed 20k over appraisal and people aren't smart enough to realize that when they "win" the opportunity to pay way more than it is worth. (stupid people never learn do they ?) the bank won't let tthem buy it anyway... only cash buyers with an ability to overpay and the lack of a working brain can easily get a house these days.. if you have a good credit score and some money down new homes make a helluva lot more sense.. no outbidding nitwits that want to 80K for a house that appraises at 50K..even if you do win a bid on an REO, you more than likely have to fix something to pass the inspection anyway...broken windows, a/c at least if you build a new home you can pick everything you want including location for probably 140-150K without any other headaches...DHI is slowly making money.. one of the few ..and it still has a dividend...thumbs up on DHI and LEN, thumbs down on PHM,BZH....

NV Realtor seeing a second wave of bank foreclosures coming that will keep the values down for several years due to supply versus demand. Also Congress in thier goal to contain the deficti is talking about taking away the tax credit for owner occupied homes and this will also work to lower home values. Investors are buying over half of all homes coming on the market but for cash and deep discounts to obtain positive cashflow but appreciation is years away and that is what is needed before Builders can increase profit margins. The only thing builders are building now is on land inventory they have sunk csts into and it is cheaper to build out and close the subduvision then to let tat inventory sit.

Housing about to begin comeback.

Check out this article to see why I am bullish on D.R. Horton:

http://www.fool.com/investing/general/2012/01/13/earnings-will-drive-this-industry-higher.aspx?source=iaasitlnk0000003

Homebuilders are getting "less bad" but still have a few years of rough road ahead. We are still at least 2-3 years out from recovery mode.

everyone is moving back in with mom and dad.

These guys build the same old cheap crummy small-lot HOA future-foreclosures that we already have plenty of.

No builder should trade above BV

Stability in the sub-prime housing is on the cusp, it just takes the right legislation and availability of money to lend. Whatever the interest rate is doing doesn't matter in a 2-4 year time frame.

following the leader