Toll brothers reported earnings early this morning. The earnings and sales figures were good. However, Toll Brothers is already pricing in a lot of good news and will need to continue to improve to justify its current stock price of $27.75. I bought it almost a year ago at around $21 and added later mostly at lower prices for an average cost of about $20. I bought it a way to “play” a U.S. housing recovery and it has worked out so far. The results from Toll brothers do show an improved U.S. housing market. This bodes well for Wells Fargo and Bank of America (and indirectly for most U.S. companies).