Long Position on MDC @ $34.00 on 6/16/2017 (Momentum)

M.D.C. Holdings, Inc. (MDC) engages in homebuilding and financial service businesses in the United States.

Its homebuilding operations include purchasing finished lots or developing lots for the construction and sale primarily of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name.

The company conducts its homebuilding operations in Arizona, California, Nevada, Washington, Colorado, Utah, Virginia, Florida, Maryland, Pennsylvania, and New Jersey.

Its financial services operations consist of originating mortgage loans primarily for homebuyers; providing insurance coverage primarily to its homebuilding subsidiaries and subcontractors for homes sold by its homebuilding subsidiaries, and for work performed in completed subdivisions; acting as a re-insurer on the claims; selling third-party personal property and casualty insurance products to homebuyers; and offering title agency services to homebuilding subsidiaries and customers. 

Its latest earnings report confirmed MDC's explosive growth, which began more than a year ago as it ended a string of declining EPS. Adjusted earnings increased 13%, 19%, 33%, 76%, 77% and 126% in the six most recent quarters, while sales ramped up 14%, 2%, 24%,  27%, 27% and 42%.

Shares have formed a bullish "flag" and higher share prices are expected for this stock. 

52-Weeks Trading Range: $21.25 - $35.99

Entry Point: $34.00

Stop Loss: $32.30

Target Price: $37.40

Updates

8/4/2017 12:56:37 PM

MDC closed at $34.78

Position closed on 8/4/2017 at price of $34.78 with a 2.29% gain in 49 days.

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