Build a Spot for Pulte in Your Portfolio
by Sam Collins 01/27/09
Pulte Homes (PHM) -- This U.S. homebuilder and financial services stock fell from more than $48 a share in 2005 to less than $7 on Nov. 21, 2008.
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But the November low matches a similar low in October and, combined with our own Collins-Bollinger Reversal (CBR) buy signals and a new buy signal from the stochastic, it could be telling us that a major long-term base has formed.
Also, note the crossing of the 50-day moving average by the 20-day (a trading buy signal).
Investors who are of the opinion that the worst is over for the building sector may want to add this quality homebuilder to their long-term portfolio.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.
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