Tuesday, December 27, 2011

Beazer Homes

It has been very frustrating for home-builders in the past couple of years due to the large inventory of available houses. One of the latest reports claims that we have just a six month inventory of houses now. This means it is time to buy home-building stocks like Beazer, BZH.

The company has been trading in a range of between $2 and $2.50 lately. Insider buying took place when the stock was around $2 per share. You may want to follow the insiders on this pattern. Even if you don't want to hold Beazer for the long term, you could make around 25% for your money during each trading cycle between $2 and $2.50 per share. If you do this twice a year, you will be ahead by 50%, and you will be easily beating the general stock market.

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