A company’s only got a low P/E until the “E” goes away. The reason many cyclical companies trade at seemingly low P/Es – like the builders right now – is because their “E”s are about to go in the toilet, thus ultimately raising their P/Es to more “normal” levels. Virtually all housing stocks are going to suffer going forward – manufactured and otherwise. All housing and related stocks are a sucker’s bet right now – this housing correction is going to play out over several years.
