Is CTX a buy or sell?

Question

Is CTX a buy or sell?

Answer 1

Its trading at 0.8x Price-to-book.  Homebuilders normally trade at 1-1.2x book.  So, when 'normal' times come back, you got yourself a 50% appreciation.  Not too bad.

What is your timeframe?

6 months?  CTX is a sell.

6-18 months?  CTX is a buy.  But, not a strong buy.

Answer 2

I would say its a sell.  They arent expected to make a profit next year either.  Book value is about 17 but most of their assets are in inventory.

Answer 3

that all depends on weather you think home building will continue to have problems? id hold if it had a higher divy but i wouldnt buy

Answer 4

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Centex Corporation is a residential construction company whose principal operations are focused on residential construction and related activities, including mortgage financing. As of March 31, 2008, the Company's subsidiary companies operated in two principal lines of business: Home Building and Financial Services. Home Building's operations involve the purchase and development of land or lots, and the construction and sale of detached and attached single-family homes. Financial Services operations consist primarily of mortgage lending, title agency services, and the sale of title insurance and other insurance products. These activities include mortgage origination and other related services for homes sold by the Company's subsidiaries and others