Perfect Opportunity Today
This company should be able to weather the storm and come out stronger than ever.
Howard Hughes (HHC) takes a multistage many year approach creating real estate value.
Interest rates are causing some volatility in the short term but should not effect the long term outlook or valuation.
The company buys land and then sells plots to developers to build residential housing. HHC is different through the complete planning of the residence experience. They are careful to design the layout of the residential plots and how they connect to other parts of town. This planning by Howard Hughes creates additional value as the homes become more desirable.
Hughes then reinvest capital from land sales to fund commercial development such as office, retail, restaurants and apartments choosing the best attributes for each particular community.
In a recent presentation HHC estimates its NAV (net asset value) of $170 per share. If you are patient enough to buy today around $100 you have an almost guaranteed 70% gain even before the business grows year after year.
Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.
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