Chessnwine has been alerting people to the meteoric rise in housing stocks as of late. A few weeks ago, I successfully traded out of BZH. For months now, these stocks have been leading the market higher–to the dismay and illustrious detriment of “professional short sellers.” As a matter of fact, many housing related stocks are making new 52 week highs, with nothing but fresh, clean, leprechaun air in front of them. Their shareholder bases have been rebuilt from the ruinous catastrophes that followed the great housing collapse of 2007.
This trend is not only helping construction companies like TOL, LEN and NVR; but it’s also lifting the prospects of derivative housing plays, like LOW, PIR, PATK and USG.
Inside of The PPT, I put together a very comprehensive housing resurgence watchlist to monitor this phenomenon. Keep in mind, all of this is based upon expectations and not reality, as new builds remain at absurd levels. As a matter of fact, housing starts are at their lowest levels since World War II. But that’s not necessarily a bad thing. Accordingly, the firms that exist today and profit in such an onerous environment are built to win and win big should the housing market rise from the ashes.
Here is a snapshot of the biggest housing related winners, year to date, courtesy of The PPT. Pay attention to this very carefully, for it may be a super trend in its nascency.
(note: the entire list consists of 66 names)
Housng is so much in demand you can’t find an existing home to buy here in the south .
Fuckers
tag stripper
I agree.. I just moved back to Florida in August, look at renting, decided to buy because a mortgage was way cheaper that rent. Three homes I liked were bought before I could ever get an offer together. Eventually I bought something. Plus house in NC I’m renting out my home there at a profit.. Housing is recovering.
The Obama Recovery after the Bush Depression.
Just like the stock market.
Doctor Fly,
How long does it take to “rebuild a shareholder base?”
Given a Dow stock with a float of say, 75-100m shares.
Also, what about a stock like Priceline (PCLN) that has gone up $40 dollars, on relatively light-to-normal volume, in 4 trading days?
Is that not a gap it has to back-fill?
The curious want to know!
Enough time has elapsed to heal the wounds of the housing sector, as fas as stocks are concerned. Plus, many of these stocks are at 52 week highs. There is not a lot of recent pain for shareholders who own these stocks, at least in recent history.
Why would the housing market rise from the ashes when a quarter of the people are under water and the banks own millions in shadow inventory?
I am not suggesting anything through economic facts, but simply pointing to what the masses are betting on. Whether it’s true or not remains to be seen.
Stocks usually lead the reality by about 6 months or so.
in the case of housing, I’m sure a lot of it will turn out to be condo’s and apartments, and the new “Mini-McMansion”
Also, baby boomer retirement homes in Palm Desert, etc.
WY- Weyerhauser a huge benefactor to housing resurgence. Been on the rise the last couple of weeks already
fwiw, dor at jmp was a housing analyst for 10 years, moved over to be the head of real estate banking 6 mos ago. didn’t do it for charity either. another cycle is before us…and that fool is about to ride it.
If only the $WNR suffered from the same genetic condition.
See ‘Stiffy Goat’
http://www.youtube.com/watch?v=Deq0U8OkwDQ
Fools
I would rather be a fool that makes money then right and miss out.
FLy says:
“Enough time has elapsed to heal the wounds of the housing sector”
Dude are you nuts?? Quit drinking the koolaid.
There are 10 million homes vacant when you include shadow inventory. The rally in the homebuilders is ridiculous.
Shorted PHM from 5.80 down to $3 then covered in August because I knew the housing hopium was coming.
HOUSING IS GOING NOWHERE for years and years. Anyone buying a home with zero interest rates is an uneducated moron who doesn’t understand that interest rates will do nothing but go up over the next decade.
THE ONLY way housing prices rise is when interest rates fall and thats not possible anymore.
Wall St just makes me laugh when they pump this total bullshit to Main St.
Unreal.
You left out an important bit, “Enough time has elapsed to heal the wounds of the housing sector… AS far as stocks are concerned.”
That is all.
I meant only the stocks, not real life.
I thought we are talking stocks here not housing reality in US, failure to understand the difference can cause you great losses ..
Ha … Boehner had stock in all the beneficiaries of the Keystone Pipeline … More insider trading by Mr Speaker himself.
no wonder 0 didnt sign it. i’ll take that bet.
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