March 24, 2022

By Nigam Arora & Dr. Natasha Arora

Signal(s) to enter, add, reduce, exit, hold or change.

KB Home (KBH) is long from $16.15. It is trading at $35.74. This represents a gain of 121%.

Here are the key points applicable to KBH:

KBH is a home builder.
Demand for housing in the price range and the geographic locations where KBH builds is strong.
KBH reported earnings below the consensus and below the whisper numbers.
Interest rates are rising and that is dampening sentiment for home builders.
KBH trades at 1.1 times present tangible book value. This is very attractive.
There is a risk of further demand slow down as interest rates continue to rise.

March 24, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know now.

Russia Pipeline Shutdown

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

Russia has shut down the pipeline that transports oil from Kazakhstan’s giant Tengiz oil field to the Russian Black Sea port Novorossiysk.
Russia claims this is due to storm damage.
Many experts are skeptical and think Russia shutdown this pipeline on purpose to put pressure on global oil supplies.
The Russian action is taking about 1M bpd of oil off the market for two months.

March 24, 2022