Japan's stock market, overlooked by investors for decades, is making a furious comeback. The benchmark$日经 225(.N225.JP)$broke past the 36,000 mark for the first time since 1990 and is edging closer to the record it set on Dec. 29, 1989, which effectively marked the peak of Japan's economic ascendancy before a collapse that led to decades of low growth. Meanwhile, Japanese companies have increas...
Sekisui House, a premier Japanese homebuilder, announced that it has reached a definitive agreement for a subsidiary of Sekisui House to acquire MDC Holdings, Inc. in an all-cash transaction valued at $4.9 billion. MDC Holdings, Inc. is one of the leading residential builders in the US. The offer represents a premium of approximately 19% over MDC's closing stock price on the...
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SpyderCall :
Good stuff. I'm wondering what other interest rate sensitive industries will get a boost from rate cuts?
Toll Brothers CEO Douglas Yearley argues that homebuilding stocks deserve higher valuation as the industry is better managed and less economically sensitive. MDC aims to deliver higher quality houses using Sekisui House's technologies and cutting-edge building practices.
The acquisition is expected to enhance M.D.C.'s position in key states by leveraging Sekisui House's technologies and building practices. M.D.C. Chief Executive David Mandarich anticipates new growth opportunities across their footprint as part of Sekisui House's U.S. family of brands.
Anticipated poor earnings performance and limited growth prospect seems to justify M.D.C. Holdings' low P/E ratio. The bleak earnings outlook could continue stifling its share price growth.
Insiders' regular selling of M.D.C. Holdings stock could suggest a belief that shares aren't undervalued. Yet, high insider ownership might imply management's interests are aligned with shareholders.
Despite a short-term dip, the stock shows positive long-term performance with notable EPS growth and constant rise in share price and shareholder returns. Potential investors should also factor in risks and recent company news.
safri_moomoor : Mogan stanley japan