Best Stock on the Market

Long Position on MDC @ $37.75 on 11/1/2023 (Fundamentals)

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

The company conducts its homebuilding operations in Arizona, California, Nevada, New Mexico, Oregon, Texas, Washington, Colorado, Idaho, Utah, Alabama, Florida, Maryland, Pennsylvania, Tennessee, and Virginia.

Its financial services operations comprise 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 in Colorado, Florida, Maryland, Nevada, Pennsylvania, and Virginia.

M.D.C. reported earnings of $1.40 per share on revenue of $1.11 billion for the third quarter ended September 2023. The consensus earnings estimate was $1.18 per share on revenue of $1.13 billion. The company beat expectations by 12.00% while revenue fell 22.95% compared to the same quarter a year ago.
 
After a strong earnings announcement on October 26th and an announcement of dividends to be shared on November 7th, shares trended higher.
 
Entry Point: $37.75

Stop Loss: $35.85

Trading Range: $28.43 to $51.94

Target Price: $41.50

Position closed on 11/3/2023 at price of $41.60 with a 10.20% gain in 2 days.

Back to Portfolio