Two other homebuilding stocks

It’s hard to dig around here and figure out when people started buying LGIH. I’m trying to see if any other home builder stocks were considered. I’ve been hearing about two other sound ones - Century Communities (CCS) and Beazer Homes (BZH). CCS was mentioned by Scott Fearon, and Beazer by AAII in their new VMQ (Value/Momentum/Quality) screener.

Interesting that none of these companies pay a dividend, and all have had a dip very recently.

Home builders live in a market that is feast or famine. If they declared a dividend, chances are they
would have to turn around and lower or eliminate it as soon as the next trough started to form. Rather
than look like fools, most choose to forego the dividend.

I sold LGIH way too soon. Maybe I’ll get another chance. http://stockcharts.com/h-sc/ui?s=LGIH&p=D&yr=1&m…

Dan

I first recall LGIH discussion around late 2015 (though I started following this board in Aug 2015, so it certainly could have begun earlier). I believe any discussion was solely around LGIH as a fast-growing, profitable company … not about trying to find a star in the homebuilding sector.

They call me,
MrTBS

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From Saul’s end-of-month summary, October 2015 edition.

LGIH is new this month, and is now my sixth biggest position at 6.9%. Its price is $28.00, its PE is 16.3, it is growing trailing earnings at 26%, but in the last two quarters quarterly earnings were up 50% or more. I took my position between $29.50 and $32.50. It has fallen in recent days because of disappointing national new-home sales (nothing company specific).

http://discussion.fool.com/my-portfolio-at-the-end-of-october-31…

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From Saul’s end-of-month summary, October 2015 edition.

LGIH is new this month, and is now my sixth biggest position at 6.9%. Its price is $28.00, its PE is 16.3, it is growing trailing earnings at 26%, but in the last two quarters quarterly earnings were up 50% or more. I took my position between $29.50 and $32.50. It has fallen in recent days because of disappointing national new-home sales (nothing company specific).

To update that, by the middle of Feb 2016 the price had fallen to $18 something intraday, and I had build my position to my third largest, I guess doubling my number of shares at the lower prices.

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Feb. 2016 was a great time to buy; so many great stocks were down a lot. (Was it because the Fed was raising rates or mumbling about raising rates?) By coincidence, it was just before I started buying stocks after many years out of the market.