Special Situations? - Home Builders and Related Stocks

I've been folllowing the home builder stocks for a while and I think now might be a good time to buy.

With Low PE's and High EPS, some of these might be worth a look.

It does, however illustrate  what  can happen if you subscribe to the 'buy and hold forever' philosophy.

It also depends  on exactly how soft you think the housing market is.  I don't think it is quite as bad as
our duck and cover media would leave as to believe.  

You never know though  - odds are they might get it right at least once.


Stock Ticker June 2005 October 2006 October PE October EPS
Beazer Homes BZH 53.38 42.6 4.12 10.33
Centex CTX 66.94 52.15 5.6 9.31
Dominon Homes DHOM 15.82 6.25 NA -.95
D R Horton DHI 32.04 23.75 4.79 4.96
Hovanian Enterprises HOV 31.4 31.63 4.88 6.48
KB Home KBH 67.68 43.89 4.16 10.55
Lennar LEN 59.33 46.86 5.55 8.44
MDC Holdings MDC 76.74 49.51 4.64 10.62
Ryland RYL 70.06 44.37 4.62 9.61
Standard Pacific SPF 82.4 26.38 4.12 6.41

There is some question as to whether or not the housing bust is as bad as it seems for all home builders.
After a little homework I decided to pick up some DHI.  I liked the dividend increase:


DHI23.61, +0.07, +0.3%) Thursday declared a quarterly cash dividend of 15 cents
a share, a payout that represents a 66 2/3% increase from a dividend of 9 cents
a share paid in last year's equivalent period.

The Fort Worth, Texas-based D.R. Horton, which is the largest homebuilder in the U.S.,
said the dividend is payable on Nov. 1 to shareholders of record on Oct. 23.
The stock closed Wednesday at $24.19, down 2.3%. 

Home Building Suppliers:

US Gypsum  -  USG   

This is one of two stocks  I think worth mentioning  that was involved with asbestos litigation in the
early 2000's.  The company emerged from bankruptcy  and Warren Buffet has been steadily buying.
He now owns about 20% of the company stock.   The company has around 5 billion in sales.

I own considerably less than that.  I think it is worth a small investment.

Owens Corning  - OWENQ

This company has passed all the hurdles and is scheduled to come out of bankruptcy and start
trading on a new ticker around the end of October.  It has around  6 billion in sales.

This one might be worth an investment  as well.  Kind of depends on what price it comes out at.
I am setting a few $$ aside in case it looks attractive.