Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays
BHS None

New Long Plays

Brookfield Homes - BHS - close: 44.74 chg: +1.37 stop: 42.45

Company Description:
Brookfield Homes Corporation is a residential homebuilder and land developer, building homes and developing land in master-planned communities and infill locations. We design, construct and market single-family and multi-family homes primarily to move-up and luxury homebuyers. We also entitle and develop land for our own communities and sell lots to other homebuilders. Our portfolio includes 30,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los Angeles; San Diego / Riverside; Sacramento; and Washington D.C. Area markets. (source: company press release)

Why We Like It:
We normally don't suggest plays on stocks with average daily volume under 200,000 shares but BHS looks like a decent candidate given its relative strength. This is one homebuilder who's stock has resisted the weakness in both the major market averages and the declines in the DJUSHB home construction index. Instead shares of BHS have spent the last couple of months consolidating sideways between $40-45 as it digests its November-March gains. The technical signals are bullish although its Point & Figure chart is currently in a sell signal. That's why we're suggesting that readers us a trigger to open the play. Our entry point will be $45.05 to catch the breakout over resistance at the $45.00 level. Our eight-week target is the $50.00 level, which is likely to be round-number, psychological resistance.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/02/05 (confirmed)
Average Daily Volume: 100 thousand

New Short Plays

None today.

Premier Investor New Play Archives