If you Build it… We Will Sell. (GRBK)

Green Brick Partners, Inc. (NYSE:GRBK) develops and builds residential properties and what they term: master-planned communities.

“Yes, Master.”

And that means they’ve seen quite a bout of activity of late.

All the homebuilders have advanced recently, though no one is quite sure why.

Rising rates, lower prices, increased building costs and an impending recession have sent chills through the Real Estate sector.

So, why are the builders advancing?

That’s about right…

GIVE US THE NUMBERS, HUEY!

Fundamentally, the picture’s like this—

• GRBK’s P/E is a mere 9.09, an otherwise healthy multiple, except for the fact that it will soon shrink.
• There’s no Yield on the stock, and…
• Price to Book is 2.43.
• Analyst consensus is for the company’s earnings to rise by a meagre 1.72% annually over the next FIVE years.  And that doesn’t bode well for bulls.
• Insiders get it, too: they sold 71.22% of their stake in the month of May, right in the midst of the stock’s unprecedented 100% climb and a key DOWNGRADE of the stock by B. Riley Securities.
• Earnings will be reported on August 2^nd (Wednesday), and we can’t imagine a positive market reaction at this stage.

Which means… the jig is up.

As the daily chart clearly shows—

Gotta believe, good Jews and Noahides…

We’re approaching the end.

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew