Posts Tagged selling stocks

SELL: Kaufman-Broad Homes KBHome (KBH)

KB HOME (KBH)

We’ve owned KBH a few times over the years.  Our current investment in KBH is up 14.92% since our purchase in the spring, but forward forecasting at least for the next 12-18 months does not look promising. In addition, problems with KBH’s mortgage lender, and some bad choices as to streamlining costs are not putting the company in a competitive frame relative to other volume builders.  Its debt remains too high, and is not trending well. The divided was also recently cut.  So we’ll take the gain and the small dividend (1%) and call it a day. If KBH can put itself back on track, and the price is right, we’d revisit them as a buy, as much of their model still works.  SELL.

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TheValueGenius Sell: Lockheed Martin (LMT)

LOCKHEED MARTIN CORP (LMT)

We’ve been selling Lockheed Martin (LMT) – It has been entirely profitable, and the business is very sound, but with about a 25.75% gain to be had, plus locking in some great dividends, our real return total has been about 38%.  Not bad for a year or two’s ownership.

After the November elections, it is possible that the Congress might actually return to doing the people’s business, and, with that, consider how to get the vast overspending of the Reagan/Bush years behind us.  Defense has been a cash cow for a long time. The move towards drones and other more effective/less costly projects will impact LMT, as will what will be certain to be significant cutbacks in U.S. defense spending, even with the industry’s heavy lobbying.  The closer you get to election time, the more this will start weighing on analysts. SELL.

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