2024-04-24 14:35:44 ET
Summary
- AMREP's stock price has appreciated significantly, leaving little room for improvement from a balance sheet perspective.
- The company recorded the sale of commercial properties, generating additional revenue but with accrual losses.
- There are indications of an improving home-building segment, with an increase in homes under construction and continued shareholder buying.
- Still, from a recurring earnings capacity standpoint, the stock is not attractive at these prices.
AMREP Corporation ( AXR ) is a land developer and home-builder.
I have covered AMREP since February 2023 , with a Buy rating until January 2024 , when I changed my rating to Hold. The reason I was bullish on the name and then not anymore was the tremendous stock price appreciation from February 2023 to January 2024, from ~$12 per share to ~$21 per share....
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AMREP Is Getting More Aggressive With Building, But Still Not An Opportunity