Kevin, when you wrote this post, you said: "In terms of single homebuilder names, I love CCS. I will go into more detail when I write up this theme, but I am buying the builders down here." Not sure when you are planning to write that up but would love to hear even in a few words why CCS is superior. I when you wrote it, I looked at the …
Kevin, when you wrote this post, you said: "In terms of single homebuilder names, I love CCS. I will go into more detail when I write up this theme, but I am buying the builders down here." Not sure when you are planning to write that up but would love to hear even in a few words why CCS is superior. I when you wrote it, I looked at the chart and then opened a smaller position. I'm wishing I'd taken on more and am considering sizing up a bit.
1. American millennials are the largest demographic and have yet to really form households. Everyone thinks they are different. They aren't different, they are just late (after seeing their parents blow up on real estate, they are gun shy. But they will do what all generations do - make families).
2. You don't want to own real estate selling to the 1%'ers. That stuff is way up. You want to own NON-GATEWAY cities. So no NYC, no Miami, no LA. You want boring stuff in the middle.
3. CCS is run by two brothers who own TONS of stock. Skin in the game.
4. They were one of the few homebuilders who didn't blow up in 2008.
5. They recently bought (stole because it was so cheap) a company called Wade Jurney (fastest growing private builder) that has figured out how to sell super cheap homes and make money.
6. With a few other tuckins, CCS is now big enough that a major will buy them.
7. Two brothers are in their 60s (maybe 70s) and don't have kids that will take over.
8. This company will get bought during the next bull run in homebuilders.
And in general, homebuilders are a terrific buy. If anything, this virus has only made the bull thesis stronger. Home prices are all about how much the consumer can carry. Assuming the worker gets their job back, rates will be rock bottom low and they will buy houses.
Thank you for the backstory. I like that thinking. I agree that once the pandemic blows over, homebuilding will be strong. I suspect the rally of the past two days is a bull trap and I freed up some cash for the next round of bargain hunting. Putting more CCS on my shopping list.
Kevin, when you wrote this post, you said: "In terms of single homebuilder names, I love CCS. I will go into more detail when I write up this theme, but I am buying the builders down here." Not sure when you are planning to write that up but would love to hear even in a few words why CCS is superior. I when you wrote it, I looked at the chart and then opened a smaller position. I'm wishing I'd taken on more and am considering sizing up a bit.
Hey Greg.
I love, love, love CCS.
Here is the elevator pitch as to why:
1. American millennials are the largest demographic and have yet to really form households. Everyone thinks they are different. They aren't different, they are just late (after seeing their parents blow up on real estate, they are gun shy. But they will do what all generations do - make families).
2. You don't want to own real estate selling to the 1%'ers. That stuff is way up. You want to own NON-GATEWAY cities. So no NYC, no Miami, no LA. You want boring stuff in the middle.
3. CCS is run by two brothers who own TONS of stock. Skin in the game.
4. They were one of the few homebuilders who didn't blow up in 2008.
5. They recently bought (stole because it was so cheap) a company called Wade Jurney (fastest growing private builder) that has figured out how to sell super cheap homes and make money.
6. With a few other tuckins, CCS is now big enough that a major will buy them.
7. Two brothers are in their 60s (maybe 70s) and don't have kids that will take over.
8. This company will get bought during the next bull run in homebuilders.
And in general, homebuilders are a terrific buy. If anything, this virus has only made the bull thesis stronger. Home prices are all about how much the consumer can carry. Assuming the worker gets their job back, rates will be rock bottom low and they will buy houses.
Hope this helps!
6.
Thank you for the backstory. I like that thinking. I agree that once the pandemic blows over, homebuilding will be strong. I suspect the rally of the past two days is a bull trap and I freed up some cash for the next round of bargain hunting. Putting more CCS on my shopping list.