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Jul.24
4:27 PM ET
Building Your Portfolio on Homebuilding Stocks

David Goldberg, analyst at UBS, foresees a lot of volatility in the next two to three months in the homebuilding industry, but assured investors that stocks will rally in the first half of 2009 as the housing industry will perform better in the latter six months.

“There is no positive catalyst at the moment [for homebuilding companies],” said Goldberg. “However, there are some stocks that you can buy despite the weakness that we are seeing today.”

Goldberg’s “buy” rating stocks:

Centex [CTX  Loading...      ()   ]

Ryland [RYL  Loading...      ()   ]

“You need to buy stocks that offer the best risk/reward trade-off,” said Goldberg. He added that the companies above are in better positions to “pick up cheap land when it becomes available on the market.”


Disclosure:

David Goldberg does not own any shares of the companies mentioned above.

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