LGIH

Anybody know what is holding this stock back?

Oil price rising? Check. Home closing shift accelerating? Check. Low PE? Check. Stock price? Down over a dollar over the past 30days.

What gives?

Justin

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Anybody know what is holding this stock back?.. Down over a dollar over the past 30days.

Hi justin, I don’t know what you are looking at, but LGIH was at $24.78 on May 18, and now it’s at $28.70. That’s up 16% in three weeks.

Saul

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Was looking over the past 30 days. May 7th was $29.60. Maybe that time frame was unfair as record closings was reported only last week.

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Anybody know what is holding this stock back?

To add onto Saul’s note…
The recent market low was in Feb and LGIH hit about $19 then. It recently hit a high of $30, then down to $23, to $29. $19 to $30 is 57%, handily outperforming the market.

http://stockcharts.com/freecharts/gallery.html?lgih

All growth stocks will form bases while they “rest” from prevoius runs. this often happens in conjunction with market corrections.

The last run stopped at $36 in December and we had some pain from there, down to just below $19 as I mentioned. IBD followers will know that a correctve base of 35% is perfectly normal. Corrections nearing 50% (like this one) are often hard to make up. They indicate the big investors probably got tired and worried and left, and thus are less likely to come back.

The fundies appear great, but maybe the market is smarter than us. Maybe we fight a wall of worry until every earnings release handily beats for 3-5 quarters and the big boys can no longer resist.

The IBD/CANSLIM investors will be waiting for the chart to get closer to the old high, then look for a break out on strong volume

The chart trader will like that it is above the 50 and 200 dma and that the 50 is above the 200 and that it found support at the 50 today. That person might add on some now, but would also quickly sell should those trend lines be violated.

The 1YPEG investor might be accumulating at opportune times with confidence because the YPEG is low, the PE is low and the growth is still there. The market must be wrong.

take your pick :wink:

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I forgot to add my favorite quote at the end of my 3-view list of the stock…

a man with two watches does not know the time

  • Chinese Proverb
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a man with two watches does not know the time
- Chinese Proverb

Go to sea with one or three watches…

The Captain

That was before GPS