ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The grinding bear market in financial markets has quickly created what I am calling “A Culture of Collapse.” The collapse is on vivid display in the stocks of home builders and other related housing and construction stocks. I cataloged the collapse in housing-related stocks that took on dramatic form two days ago. The iShares Dow … Read more
Housing Market Intro/Summary The short-term outlook for the housing market is clouded by the current global turmoil generated by the coronavirus. The housing data discussed below were all collected before the virus came to the forefront of the minds of Americans. While demand for housing in the U.S. should remain strong (and certainly times like … Read more
Overall Assessment I want to be bullish on Century Communities (CCS). Century Communities sports a recession-level valuation and a strong top-line growth profile. The company’s business model is solidly planted in the entry-level and lower-priced homes that are prime drivers of the current housing market. However, a negative cash balance, negative earnings growth (over the … Read more
Century Communities (CCS) just made a new all-time high and yet it is STILL a cheap stock. CCS sits at a 0.5 price/sales ratio, 1.1 price/book ratio, 10.7 trailing P/E, and 7.6 forward P/E. Home builders typically hit 1.0 price/book ratios at the BOTTOM of a recessionary cycle. The response to CCS’s latest earnings report … Read more
Century Communities, Inc. (CCS) reported third quarter earnings on the evening of November 5th at the tail-end of a particularly challenging time for the stock. Going into earnings, CCS was down 35% from its 52-week and all-time closing high set in early September. CCS is still up 7.5% for the year, but the recent earnings … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2015. Click here to read the entire piece.) After regional homebuilder LGI Homes (LGIH) produced stellar earnings results earlier this month, I had high hopes for Century Communities (CCS) as well. CCS’s results for its second quarter were good, … Read more