Quantcast
I have 31 consecutive profitable trades of 15% or better. How is this possible? Every day there are hundreds of stocks setting new highs, no matter what happens in the overall market. Many of these stocks are still at very reasonable valuations. Afraid of buying stocks at their highs? Think of it this way: a new high is really a future floor for companies with solid financial underpinnings. Quantitative momentum modeling makes it easy to identify stocks that can continue this upward momentum trend. Why does this happen? It's really very simple..ask me about what investors and cows have in common. I am $$$ MR. MARKET $$$. I AM HUGE!!! Bring me your finest meats and cheeses. You can join in on the fun. Register for free and you'll be able to post messages on this forum and also receive emails when $$$ MR. MARKET $$$ makes his own trades. ($$$MR. MARKET$$$ 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.)
Page 1 of 2 12 LastLast
Results 1 to 10 of 17
  1. #1

    Default CCS ==> The GOAT winner

    Remember the movie “Goodfellas”? The drinks….are on….the house. Residential construction ended 2020 on a strong note. Housing starts rose 5.8% to 1.67 million annualized units in December. U.S. housing starts rose in December much more than expected to an annual rate of 1.669 million. It's now at the highest level since the financial crisis of 2007–2008. What’s even more meaningful, in this low interest rate environment – which is here to stay for a while – is that fact that limited inventory is constraining more robust growth. U.S. mortgage rates even hit a 30-year low of 2.65% compared to 3.64% one year ago. The FHA recently increased their floor and ceiling loan limits by approximately 7%, helping expand the pool of potential buyers. There is a shortage of buildable lots and people are screaming to get into houses. Whenever you have a business where demand exceeds supply, you’re living in the sweet spot. New listings are getting offers so quickly and are going straight to contract.

    Yes, we are coming out of the pandemic and home sales are rising at a record pace, fueled by the generous Fed printing money with its soft monetary stance and lower mortgage rates. Demand for new homes is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek larger homes to work from home during the pandemic. Homebuilders are focused on growing demand for entry-level homes and addressing the need for lower-priced homes.

    Welcome to the homebuilding BOOM of the 21st Century. And speaking of Century, today I bought stock in Century Communities, Inc (CCS) at a price of 59.02. I will sell it in 4 to 6 weeks at 68.17. Here’s why I love CCS:

    First of all, look at this amazing chart:



    This stock is up 59% in the last 12 months and yet its PE is still only 9.6. Growth plus value….I like it!

    Century Communities, Inc., together with its subsidiaries, engages in the design, development, construction, marketing, and sale of single-family attached and detached homes. It is also involved in the entitlement and development of the underlying land; and provision of mortgage, title, and insurance services to its home buyers. The company sells homes through its sales representatives, as well as through independent real estate brokers in 17 states in the United States.

    They are just crushing it. In 2020, CCS achieved multiple milestones, including their 18th consecutive year of profitability, $3.2 billion in total revenues, a 25% increase; to 10,822 net new contracts, a 38% increase; and 9,453 home deliveries, an 18% increase.

    They have consistently achieved double-digit revenue and delivery growth, reflecting the power of their business model and the appeal of their geographically diverse footprint. Last quarter, they generated record home sales revenues of nearly $950 million, a 22% increase, while increasing home deliveries by 14% to a company record 2,826 homes. The sales pace accelerated through the end of 2020 and into the beginning of 2021, with net new contracts for December increasing 54% and January increasing 77%. They also made significant progress in growing their backlog.

    Net income for the quarter and year also increased 72% and 82%, respectively, to $92 million and $206 million. Adjusted homebuilding gross margin percentage increased sequentially 300 basis points to 23%, primarily due to improved home price appreciation across their markets.

    The Phoenix is rising. Century plans to break ground across multiple planned communities consisting of over 1,700 home sites which will diversify Century's offerings in this attractive, high-potential market where new home demand is at an all-time high. In 2020, Phoenix was a top 10 U.S. city for inbound growth. Building spec homes in a high demand market is really smart. The construction process is typically faster, more efficient and less prone to closing delays. The time frame between sale and delivery can be materially shortened to maximize margin potential. Market conditions will remain favorable into the spring selling season and throughout the balance of the year. Looking back, they didn't see a slowdown at the end of the year that is pretty typical. They sold completely through the holidays, and it just continued on after the New Year.

    Here’s a trend worth looking at:

    Revenues Earnings
    2016 $ 994 $ 50
    2017 $1424 $ 50
    2018 $2147 $ 96
    2019 $2536 $113
    2020 $3161 $206

    The numbers speak for themselves…and…the drinks….are on….the house!

    Here’s what the boss, Dale Francescon, had to say:

    “Our impressive performance is compelling evidence of the power of our business model, as well as the strength of our entire team and our ability to overcome the unprecedented challenges of the past year. We're even more excited for what lies ahead. We are in 2021 with a great sense of opportunity and looking into the future, remain confident in our ability to build on our success and achieve a long term vision. We are better situated than ever before to expand our scale and scope, accelerate growth and generate expanded profitability. Before the full effects of the pandemic were felt last year, housing demand was solid and picking up pace. At that time, there were already multiple demand drivers and industry tailwinds at play. We believe these trends are real and have considerable staying power. The primary factor is, and continues to be, record low interest rates.”

    With the amount of money I make on this stock trade, I’ll be able to buy a house in Phoenix! Bring me your finest meats and cheeses!

    $$$MR. MARKET$$$

    www.mrmarketishuge.com
    Last edited by mrmarket; 03-15-2021 at 01:30 PM.
    =============================

    I am HUGE! Bring me your finest meats and cheeses.

    - $$$MR. MARKET$$$

  2. #2
    Join Date
    Nov 2011
    Posts
    3,645

    Default

    Sweet Pick

  3. #3
    Join Date
    Sep 2003
    Posts
    4,915

    Default

    Great writeup and an awesome pick, $$MM! I'm in with you at $60 on this one.

  4. #4
    Join Date
    Sep 2003
    Posts
    4,915

    Thumbs up

    Quote Originally Posted by jiesen View Post
    Great writeup and an awesome pick, $$MM! I'm in with you at $60 on this one.
    CCS is already up a buck since yesterday... nice! Now, if only this trend would continue for another 7 days...

  5. #5
    Join Date
    Jan 2004
    Location
    Blue Ridge Mts....
    Posts
    3,678

    Default

    I bought 1k shares on the cheap today ($54.70) I think it’s a good one too!
    BEEF!... it's whats for dinner!

  6. #6
    Join Date
    Sep 2003
    Posts
    4,915

    Default

    Quote Originally Posted by Lyehopper View Post
    I bought 1k shares on the cheap today ($54.70) I think it’s a good one too!
    nice entry on the CCS, Lye!

  7. #7
    Join Date
    Sep 2003
    Posts
    4,915

    Default

    Quote Originally Posted by jiesen View Post
    nice entry on the CCS, Lye!
    In fact, you've already got a 15% gain (if you've still got it). And we're almost half-way there, to 69! Goooooooooooo C C S ! ! !

  8. #8

    Default

    He could've had more if he wanted.

  9. #9
    Join Date
    Jun 2009
    Location
    NJ
    Posts
    584

    Default

    Lookin' like tomorrow may hit the 68.17 target!

  10. #10
    Join Date
    Sep 2003
    Posts
    4,915

    Default

    Yes, less than a quarter shy of hitting $68 in regular hours, but already trading over $69 in AH, this one's bound to hit tomorrow, too!

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. The GOAT Top 5
    By mrmarket in forum Discussion
    Replies: 6
    Last Post: 02-15-2021, 08:26 PM
  2. The GOAT data dump
    By mrmarket in forum Discussion
    Replies: 0
    Last Post: 02-07-2021, 12:48 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  




Do you like this site?

Take a look at the homepage
of $$$ MR. MARKET $$$