Also in this playlist...
This transcript is automatically generated
Covering Megan McGrath of MKM partners joins me now with.
-- can play it I look at housing stocks a lot of were up 80% some over a 100% in the past year is it already too late.
We think mostly up -- stacked so if you're looking for another big 80% year we don't think you're gonna get -- this -- we think could do okay.
Maybe beat the SMP but it it's not be here a few.
Awaited in your portfolio don't -- -- this here okay let's go after a few of these stocks let's start with Leno are now you've got a -- neutral on that one why is that why not more.
Yes -- aren't just reported this -- -- the hot stock this week.
The stock is trading at pretty rich multiples above two times book which is pretty rare for these stocks.
And the company came out this week and talked street and a little bit lowered expectations a little bit for the -- So I think that there's just not a lot of upside left -- that -- okay even though you are forecasting overall 20% growth in new home sales let's go to the body you have in this sector KB homes.
Yet Katie is the turnaround story this here stuff got to be a little patient.
They've got to get the community cannot because they've been lacking they fell behind in buying -- last year which was a mistake.
But if they can get their community caps start to get -- order growth.
They are trading at a discount to the group so all they need to get some upside there -- they need to compress that discount and move up a little bit we think they can do that.
Now -- we -- look at housing stocks we shouldn't be looking at in the field PE multiples that we have to look at there's a multiple book values say the entire sector -- two times book value.
KBH is what kind -- -- -- one point four times a very cheap compared to the sector relative to the -- -- great now let's cut to one where you actually have a sell on these guys.
Ryland Group RY out.
We just a rally is I'm one of the most expensive stocks in the universe right now trading about 2.4 times book value while I'm an Arkansas -- -- -- think stunning good job this year but they started to buy growth and -- -- acquisitions and our concern for -- -- at some point.
They're -- -- it's gonna start to decline because they won't have those acquisitions in the numbers.
And -- a little concerned about how extensively they're doing this acquisition -- we're watching our margins are they doing it.
And increasing the bottom line as well so we think what is -- look ahead.
I would wish shorting going into the quarter that they've got some acquisitions -- -- but longer term we are concerned that they're buying their breath.
Now I realize that you follow housing stocks rather that housing but I'm just kind of wondering.
What -- be better off taken 25000 dollars instead of putting into housing stock sector putting it into.
-- -- US but I think it is a really good time to -- house in most markets if you can qualify for a mortgage we had a survey out -- of real estate brokers number one concern -- point thirteen lack credit.
Say you gotta have perfect credit still -- -- -- by -- and I do I want thank you guy firstly eventually -- -- thing for being with us makeup.
Wrap up -- -- that a credit they needed help make up up up up.
All right -- housing is rebuilding there is talking about it new home construction at a four year highs obviously the market.
Filter by section