| The Casual Investor | ||||||||||||
| Investing tips for those who are not yet rich | ||||||||||||
Stock Pick 12/17/2007: BHS
I indicated before that I was looking for companies with low volume and outstanding shares, but I just couldn't pass this one by. BHS has the lowest price ratio of any stock I've seen in a long time. On top of that, it's got good margins, nice returns, a moderate-sized dividend, small market capitalization, and enormous price swing potential. The big worry with this company is that it sells houses. Buying shares of Brookfield Homes means gambling against the subprime crisis. However, given this company's fundamentals, BHS can probably beat the odds. Its shares are about as cheap as they're going to get, and as soon as the subprime crisis is over this stock should gain value quickly. 2007-12-17 22:31:00 GMT
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