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Today I sold PHM at 88.93. That's a 15.5% gain in 5 months over my purchase price of 77.77. Over the same period, the S&P 500 was only up 3%. $$$MR. MARKET$$$ just crushes it! That's a 31% annualized gain. Can you do that? you? YOU? YOU???
I am HUGE!! I now have 20 consecutive profitable trades of 15% or better. Yes, I'm the purple flower of the Cosmos, give me wide berth. When the Rapture comes, I'll make 'em wait! My physical type *cannot* be classified by science. I kidnapped the future and ransomed it for the past. Yes, I can drink more wine and stay soberer than all the space monsters in Hong Kong! I communicate without *wires* or *strings*! I weigh 42 pounds in zero gravity. I wipe the *Pyramids* off my shoes before I enter *my* house! I achieved `Nirvana' and took it *home* with me. I'm the Unshaven Thorn Tree of the Cosmos! Every night I hock up a lunger and extinguish the *Sun*!
This is the World of $$$MR. MARKET$$$
Your hair will curl in the World of $$$MR. MARKET$$$.
He fights monsters galore and then asks for still more
Or so says the brag of $$$MR. MARKET$$$.
When on the hill the marines plant a flag
They may be led by $$$MR. MARKET$$$.
With a cannon in hand he can beat any band
Or so says the brag of $$$MR. MARKET$$$
Fencing and fighting and round table knighting
And slaying of dragons, too.
Shipping and sailing and great harpoon whaling
There’s nothing $$$MR. MARKET$$$ can’t do.
Hunting and trapping and gold miner mapping
And flying to Timbuktu.
Roping and riding and Indian guiding
$$$MR. MARKET$$$ comes through.
This is the World of $$$MR. MARKET$$$
Your head will whirl in the World of $$$MR. MARKET$$$.
He can do anything in his world he’s a king
Or so says the brag of $$$MR. MARKET$$$
What does this all mean??? There will be a plethora of $$$MR. MARKET$$$ winners coming soon, but only if you collectively sing the high praises of $$$MR. MARKET$$$. So let's hear it.
I am HUGE!!
================================================== ================================================== ==================
PHM ==> The Point Pleasant Winner
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Sometimes $$$MR. MARKET$$$ just loves to prove to the world that he’s oh so so good. But other times you just fall into a market that just makes it so easy. The theory is that we’re getting near the top of interest rates, there is zero supply of new homes and, if rates fall homes will be more affordable and demand will take off.
The economy is strong because the job market is stronger, consumers are feeling better and they are willing to spend more money. Right now mortgage rates are high, but not ridiculously high. People who have cash know they can always refinance when rates recede.
While the red hot ascent of homebuilding stocks may leave some skeptical observers wondering if the stock prices have gone up too far too fast, $$$MR. MARKET$$$ can only laugh. . Mortgage rates will remain accommodating through the period, and the improving economy will leave consumers comfortable about taking the plunge to buy an expensive asset such as a home, even if interest rates don’t drop right away. There has never been a better time to own a home. Do you remember when rates were in the teens? Guess what? People were buying houses then, also.
Today I bought PHM (PulteGroup, Inc) at 77.77. I will sell it in 4 to 6 weeks at 89.83. Here’s why I like PHM:
First of all, look at this amazing stock chart:
Over the past year, PHM shares are up 96.1%, versus a gain of 15.7% for the broadermarket. Yet its P/E is still a humble 5.3. Since last October, it’s stock price has ascended in virtually a straight line…Look at it! This indicates price momentum that has been incredibly steady.
PHM’s boss also agrees with $$$MR. MARKET$$$. " I think there are a lot of positives to be taken out of our first quarter results, including we delivered record first quarter earnings, driven by higher closings, continued strong gross margins and improved overhead leverage. Overall market conditions continue to improve as we experienced strong demands and are finding opportunities to reduce incentives and/or increase prices in many communities.," said CEO Ryan Marshall. We are Marshall!
PHM has recorded tremendous sales and profit growth over the most recent reporting periods. They are acknowledged as one of the premier US homebuilders. PulteGroup reported revenues of $3.58 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $2.35 for the same period compares with $1.83 a year ago. Compared to the ANAL-yst estimate of $3.27 billion, the reported revenues represent a surprise of +9.42%. The EPS surprise was +32.02%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period. They’ve proven, over a long period of time that they know how to grow their business and their formula works. PHM’s excellent performance stems from a focus on internal growth. The company has also benefited from its concentration in demographically favorable areas. On top of these factors, Pulte is benefiting from its large size and solid balance sheet, which give it a major advantage in obtaining big land holdings in desired areas. Expect these conditions to drive further growth in coming periods. Pulte made the decision to increase spec starts as they predicted the opportunity to realize a number of strategic benefits within their homebuilding operations. With more units in production, they can better meet buyer demand as more consumers are seeking quick move-in homes.
ANAL-ysts are projecting earnings of $9.38/share in 2023. Even with a very modest PE multiple expansion, the PHM stock will easily eclipse my price target based on these sandbag estimates. These gains will be driven by a 10% increase in home closings, and a modest rise in average selling prices. In reality, the P/E will most likely expand as these homebuilders post quarter after quarter of magnificent earnings. I expect valuations for most major builders will expand to low double-digit forward price/earnings ratios.
Even though PHM is a gargantuan homebuilder, its structure is still entrepreneurial. PHM has profit center managers distributed over their local markets and they can land big bonuses if their profits are good. They work hard for themselves and, as a result, for the company. They are the 24/7 tentacles for the home base.
Key financial ratios also point to PHM as being a top tier performer. Return on assets is 15.85% while Return on Equity is 32.32%.
PHM is really an example of a great $$$MR. MARKET$$$ momentum stock. This stock is like a freight train moving faster and faster. True, eventually there will be macroeconomic conditions that will slow this train down, but while it is slowing down, its stock price will keep going up. There’s just too much inertia for anyone to step in front of this train and stop it right now. So nice try Mr. ANALyst…we’ll see you under the tracks. Next time, why don’t you pick your nose instead of picking stocks? You might have a better chance of being correct. Leave picking winners to the professionals….
I am HUGE!
$$$MR. MARKET$$$
I am HUGE!! I now have 20 consecutive profitable trades of 15% or better. Yes, I'm the purple flower of the Cosmos, give me wide berth. When the Rapture comes, I'll make 'em wait! My physical type *cannot* be classified by science. I kidnapped the future and ransomed it for the past. Yes, I can drink more wine and stay soberer than all the space monsters in Hong Kong! I communicate without *wires* or *strings*! I weigh 42 pounds in zero gravity. I wipe the *Pyramids* off my shoes before I enter *my* house! I achieved `Nirvana' and took it *home* with me. I'm the Unshaven Thorn Tree of the Cosmos! Every night I hock up a lunger and extinguish the *Sun*!
This is the World of $$$MR. MARKET$$$
Your hair will curl in the World of $$$MR. MARKET$$$.
He fights monsters galore and then asks for still more
Or so says the brag of $$$MR. MARKET$$$.
When on the hill the marines plant a flag
They may be led by $$$MR. MARKET$$$.
With a cannon in hand he can beat any band
Or so says the brag of $$$MR. MARKET$$$
Fencing and fighting and round table knighting
And slaying of dragons, too.
Shipping and sailing and great harpoon whaling
There’s nothing $$$MR. MARKET$$$ can’t do.
Hunting and trapping and gold miner mapping
And flying to Timbuktu.
Roping and riding and Indian guiding
$$$MR. MARKET$$$ comes through.
This is the World of $$$MR. MARKET$$$
Your head will whirl in the World of $$$MR. MARKET$$$.
He can do anything in his world he’s a king
Or so says the brag of $$$MR. MARKET$$$
What does this all mean??? There will be a plethora of $$$MR. MARKET$$$ winners coming soon, but only if you collectively sing the high praises of $$$MR. MARKET$$$. So let's hear it.
I am HUGE!!
================================================== ================================================== ==================
PHM ==> The Point Pleasant Winner
($$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.)
Sometimes $$$MR. MARKET$$$ just loves to prove to the world that he’s oh so so good. But other times you just fall into a market that just makes it so easy. The theory is that we’re getting near the top of interest rates, there is zero supply of new homes and, if rates fall homes will be more affordable and demand will take off.
The economy is strong because the job market is stronger, consumers are feeling better and they are willing to spend more money. Right now mortgage rates are high, but not ridiculously high. People who have cash know they can always refinance when rates recede.
While the red hot ascent of homebuilding stocks may leave some skeptical observers wondering if the stock prices have gone up too far too fast, $$$MR. MARKET$$$ can only laugh. . Mortgage rates will remain accommodating through the period, and the improving economy will leave consumers comfortable about taking the plunge to buy an expensive asset such as a home, even if interest rates don’t drop right away. There has never been a better time to own a home. Do you remember when rates were in the teens? Guess what? People were buying houses then, also.
Today I bought PHM (PulteGroup, Inc) at 77.77. I will sell it in 4 to 6 weeks at 89.83. Here’s why I like PHM:
First of all, look at this amazing stock chart:
Over the past year, PHM shares are up 96.1%, versus a gain of 15.7% for the broadermarket. Yet its P/E is still a humble 5.3. Since last October, it’s stock price has ascended in virtually a straight line…Look at it! This indicates price momentum that has been incredibly steady.
PHM’s boss also agrees with $$$MR. MARKET$$$. " I think there are a lot of positives to be taken out of our first quarter results, including we delivered record first quarter earnings, driven by higher closings, continued strong gross margins and improved overhead leverage. Overall market conditions continue to improve as we experienced strong demands and are finding opportunities to reduce incentives and/or increase prices in many communities.," said CEO Ryan Marshall. We are Marshall!
PHM has recorded tremendous sales and profit growth over the most recent reporting periods. They are acknowledged as one of the premier US homebuilders. PulteGroup reported revenues of $3.58 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $2.35 for the same period compares with $1.83 a year ago. Compared to the ANAL-yst estimate of $3.27 billion, the reported revenues represent a surprise of +9.42%. The EPS surprise was +32.02%.
Over the last four quarters, PulteGroup surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period. They’ve proven, over a long period of time that they know how to grow their business and their formula works. PHM’s excellent performance stems from a focus on internal growth. The company has also benefited from its concentration in demographically favorable areas. On top of these factors, Pulte is benefiting from its large size and solid balance sheet, which give it a major advantage in obtaining big land holdings in desired areas. Expect these conditions to drive further growth in coming periods. Pulte made the decision to increase spec starts as they predicted the opportunity to realize a number of strategic benefits within their homebuilding operations. With more units in production, they can better meet buyer demand as more consumers are seeking quick move-in homes.
ANAL-ysts are projecting earnings of $9.38/share in 2023. Even with a very modest PE multiple expansion, the PHM stock will easily eclipse my price target based on these sandbag estimates. These gains will be driven by a 10% increase in home closings, and a modest rise in average selling prices. In reality, the P/E will most likely expand as these homebuilders post quarter after quarter of magnificent earnings. I expect valuations for most major builders will expand to low double-digit forward price/earnings ratios.
Even though PHM is a gargantuan homebuilder, its structure is still entrepreneurial. PHM has profit center managers distributed over their local markets and they can land big bonuses if their profits are good. They work hard for themselves and, as a result, for the company. They are the 24/7 tentacles for the home base.
Key financial ratios also point to PHM as being a top tier performer. Return on assets is 15.85% while Return on Equity is 32.32%.
PHM is really an example of a great $$$MR. MARKET$$$ momentum stock. This stock is like a freight train moving faster and faster. True, eventually there will be macroeconomic conditions that will slow this train down, but while it is slowing down, its stock price will keep going up. There’s just too much inertia for anyone to step in front of this train and stop it right now. So nice try Mr. ANALyst…we’ll see you under the tracks. Next time, why don’t you pick your nose instead of picking stocks? You might have a better chance of being correct. Leave picking winners to the professionals….
I am HUGE!
$$$MR. MARKET$$$
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