Hey Homies...

The title of this post is intended to be a horrible pun, *grin*. There has been some talk about the Homebuilders being cheap. The Wall St. Journal actually had an article about this today. Bill Miller of Legg Mason was said to be buying them as is David Einhorn of Greenlight Capital who likes MDC.

These guys might be on to something. MDC's forward P/E is 5.5...of course that's assuming that MDC earns a whopping $11.77 a share next year. Everyone thinks the homebuilders are done, 'cept these guys. "The bubble's bursting!" the bears say. I know I have promised to be bolder, but right now I am kind of in the middle here. I lean towards the bulls. If I had to take a position, it'd be a bullish one, but I'd buy some insurance on it! Maybe the way to play these guys is a nice bull spread. Hey, I like that idea!

I think there could be a long trade in CHCI coming, too. Keep your eyes open for a near 2 pt. pop in it.