Before buying any one of these stocks, take a very careful look at debt, bond ratings, and assess what would happen if the value of their hard assets (land/inventory) were to fall 30%.
You need to read the balance sheets very, very carefully, and think about St. Joe’s situation before buying into this “quality” line. They are going to find it harder and harder to sustain funding. The only reason to buy one of these is for hard assets that total more than stock price, but I haven’t seen one where applying the logical deflator results in a very good book value.
Don’t forget, these guys have been buying and building in the “hot” markets which now will see the largest drops.
In GA, my area was never bubbly. It profited slightly, and that’s all. Well, land bought at auction here about a year ago is now being auctioned off at 50% less.
