NVR's lower capital requirements and increased flexibility over peers make it the best homebuilder to own over a full housing cycle.
In an industry with mixed business quality, a handful of names stand out.
Although the housing market has several factors still working against it, these undervalued names are poised to benefit from supportive demographics.
The home security company faces an onslaught of new competition.
Past raw land purchases and joint venture agreements were opportunistic, not indicative of a shift to a more capital-intensive land procurement strategy.
Recent U.S. economic data bodes well for industrial companies' near-term fortunes.
All in, we find recent changes to the IPO process as somewhat positive for the qualifying companies seeking to go public, modestly negative for the investment community, and neutral to the investment banks.
The increased willingness to divest shares shows that insiders believe the risk/reward for continued investment is not overwhelmingly in their favor.
We think the new, less stringent disclosure requirements will make it even more difficult for investors to make informed decisions.
Investors should look past the IPO hype and focus on company fundamentals.