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I honestly can’t believe that more investors are not looking at unloading long positions in the homebuilders. Right now, by virtue of the fact that there’s a lack of good analytic “eyeballs” slicing and dicing the industry numbers and the homebuilder financials, the homebuilder stocks are the most inefficiently overvalued sector of the stock market besides a few select tech stocks. I’ve been trading every part of the homebuilder capital structure since 1994 (bank debt, sub debt, pfd equity, common stock) and right now this is the easiest call I’ve seen in that period of time.

Written by Dave Kranzler,Investment Research Dynamics
Read more at SGT Report

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