Buy on Dips

[AceHigh]

If you like HomeBuilders, and I know you guys don't, now would be a good time to think about buying. The have been hit with a dip and May is earnings month for most of them. Something to think about.

Take a look at TOL, SPF, WLS, DHOM, OHB and DHI.

[Ray Zee]

read the post by adios below on c-p inflation. interest rates will go up after the election. then its curtains two years out for homebuilders.

[AceHigh]

Ok, but I can make a lot of money in 2 years investing in Homebuilders, then get out.

I think some of these homebuilders will increase there stock price 20% by the end of May.

As long as inflation goes up gradually, and doesn't rise signifigantly higher, 3% or so, it won't hurt that much.

[SossMan]

[ QUOTE ]
Ok, but I can make a lot of money in 2 years investing in Homebuilders, then get out.



[/ QUOTE ]

Don't you think that future earnings (or lack thereof) will be built into the price? Do you think that the market is that ineffective?

[AceHigh]

I might if the P/E's were high(er).

Obviously the market can be very ineffective, see internet stocks a few years ago.

[Ray Zee]

see internet stocks a few years or less from now. they are back up to infinite p/e ratios. cant be right. i cant jump off the train though as i dont know where the next station is.

[AceHigh]

At least they have "E"'s. [img]/images/graemlins/grin.gif[/img]

[AceHigh]

Home builders had a record month in March, so these stocks could be turning around. Good day today.

http://cbs.marketwatch.com/news/stor...mp;siteid=mktw

[plj8624]

I am not confident about the future of homebuilder profits, but I was on a message board with some people who were CONVINCED that the homebuilders were going to plunge in 2002-2003. They lost gobs of money shorting homebuilder stocks. So I think I prefer to just stay away.