ASP increasing because of higher $ markets…hopefully EPS increasing for the same reason.
LGIH can steady the sales but it will cost them margins, I guess that’s the point raised by WFC analyst. I have recently read reports from other sources (who have much stronger batting average for over 10 years) that prices are not going up and start coming down on the coastal.
Remember LGIH has a short order to close window, so it is not like DHI who have a better 6 months visibility. So there is a good chance the management could be blindsided by the sales decline and also some of these declines are happening in new locations for the company.
On the other hand you have a hefty short interest and the multiples are getting lower and providing a much better floor. If they pull the sales next month, this is a great setup for a bounce back to 430 to $32 for a quick 15%.
BTW, I quickly skimmed MTH call and they are also expressing some weakness. So I am waiting on the sidelines.