HOV, RYL, BZH, DHI and LEN and all of the residential construction plays are buys, right now. If housing is going to continue to recover, mortgage plays like NSM, MTG, HLSS and RDN are going higher, much higher.
If housing isn’t going to dive lower again, taking the economy with it, material plays like CX, LPX and USG are buys.
Home improvement plays like HD, LOW, LL, MAS, FBHS and WSM are buys, right now.
Online software plays, like Z, TRLA and TXTR should be under accumulation, if in fact housing is on the come up.
h/t @Coopercerulo
This industry is so hated, it’s amazing. The market for new builds is strong and prices are rising. The bond market undergoes a little shake up and everyone marks the sector dead as a doornail. If I was a betting man, I’d start accumulating all of the above names into weakness, strength or indifference. The above stocks led the market higher from 2009 and will lead again. Once this little interest rate scare moves past us, housing will be front and center again, especially after another strong summer of housing data.
If you enjoy the content at iBankCoin, please follow us on Twitter
$EARN your keep
I have LEN. They picked up thousands of lots in my area when a local bank failed and they were right there with the FDIC buying the underlying for pennies on the dollar.
ELLI too.
elli sucks
Riding housing with IYR for 2 weeks now for the long run… solid div yield as well
question fly, due to the sell off in fixed income, what our your thoughts on shorting the smaller broker dealers like a piper jaffray. the reason why i think its a good short is because these companies have large sell side desk, and provide the liquidity to the buy side firms. they also hold large inventories of bonds. you also cant short munis like you can to corporates and Piper does a lot of muni sells as well as smaller firms like southwest securities
so since these firms rely on there sell side desks to make them money, i think its a good short. just seeing what you think or anyone else
big mistake. Stay long banks and brokers, especially GS
but goldman has other revenue streams like wealth management and I banking. these smaller brokers main revenue comes from FI sales and trading. when the market moves 100 beeps, its going to firm the bottom line. I am also long BAC.
agreed , material plays Will rock ! But as for Volume on main indexes are shamefully light again today, there must be only one-half dozen guys trading all the stocks as tumbleweeds roll through the exchange and crickets sound off in the background
Reloaded up on some HD a week or so back on weakness. Considering swapping it for LOW here, have had a decent bounce in HD. LOW may have more room to run.
http://www.quickmeme.com/meme/3v4fh5/
ITB covers it all
off topic: ONVO uplisting on thursday, 3D printing company that prints human liver cells in a petri dish for toxicology testing. partnered with PFE and ADSK