Toll Brothers is updated and is rated Speculative Buy at $34.13. As the report indicates, this luxury home builder is not an obvious bargain. But as it roars back (in terms of sales) from the depths of the U.S. housing crisis it appears set to show much larger earnings over the next couple of years. The issue becomes whether or not the growth is already priced in. Personally I plan to add to my position but not go overboard. I will be prepared to add to my position if the share price should happen to decline by say 10%.
On Friday our stocks had a particularly good day. Bank of America was up 3.8% and Wells Fargo was up 3.3%. The banks were up after having passed the Fed’s Stress Tests and having announced stock buy backs. Canadian Tire was up 2.2%. While some of the stocks were down, it was a strong day overall.