Stockchase InsightsGreen Brick PartnersGRBKHOLDApr 17, 2023

Our PAST TOP PICK with GRBK has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 13%, when combined with our previous guidance.   

Our PAST TOP PICK with GRBK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $60) to $67 at this time.  

Our PAST TOP PICK with GRBK has achieved its target at $70.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $55) to $60.  

Our PAST TOP PICK with GRBK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $50) to $55 at this time.  

We reiterate GRBK, a land developer and homebuilder focused on the US southern states, as a TOP PICK.  Analysts prefer that the company owns most of its land within a low-leveraged balance sheet.  It trades at 7x earnings, 1.6x book and supports a 26% ROE.  We continue to recommend holding a tight stop at $50, looking to achieve $70 -- upside potential of 23%.  Yield 0%

Our PAST TOP PICK with GRBK is stagnating.  To remain disciplined, we recommend trailing up the stop (from $43) to $50 at this time.  

Recently reported earnings for GRBK, a builder of new homes in the US southern states, showed all time record high quarterly home closings and EPS -- both increasing 25% over the year.  It trades at 8x earnings, under 2x book and supports a 25% ROE.  The company is prudently using cash reserves to retire debt and buy back shares.  We recommend setting a stop-loss at $43, looking to achieve $74 -- upside potential of 19%.  Yield 0%