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Rob

Can't for the life of me see what you see in ATAC. Maybe I'm missing something. This is basicly a glorified junk dealer. Although its chart has run up well over the past 6 months, it looks like its run out of gas lately to me. And what about this stock will take it higher?

Neither its gross income nor its net income has risen much over the past year. Gross income is up only 1.4% over the previous quarter, although net income is up 12% over the previous quarter. I just don't see this stock moving much from here.

I've been searching through IBD ratings lately and found some great ratings for homebuilders. Thats how I found Mr Market. He's Hugh. I was searching The Fool for OHB and found a discussion on the Mr Market board.

The homebuilding industry is red hot these days. It has excellerated at an unbelivible pace during the last two quarters of 2001, mainly due to a 40 year low in mortgage interest rates. Look at the charts for all the homebuilders and you'll faint. In fact several of them show up in Mr Market's chart of 15% winners over the pasr year: WLS, OHB, RYL, CTX, BZH, RH, NHCH, DHI PHI, PHM, LEN MDC,DOHM.

All these stocks are experiencing explosive growth in revenues and EPS. Most are in double diget EPS growth. WLS is up 54% in Q3 01 over Q3 00. OHB is up 63%. BZH is way up. And on and on. Any of these are far superior to ATAC IMHO. But don't take my word for it. Go check them out yoursrlf. Mull over their 10Q statements.

I particularly like OHB after researching most of them very carefully. Their EPS grew 19% in Q1 01, 44% in Q2 01 and a whopping 63% in Q3 01! Talk about excellerating growth. And even better yet, new orders are up 94% in Q3 01 and their backlog (houses in progress) is up 73%!

All the homebuilders who have reported Q4 01 earnings so far this year have turned in stellar results. Perhaps the biggest builder of them all, BZH (which by the way was a Mr Market 15% gain last year) reported record profits for Q4 01, reaching $9 a share for 2001, several years ahead of schedule. BZH stock took off after they reported these stellar earnings in mid-January. The same chart pattern has showed up after each homebuilder reports Q4 01 earnings. Look at the charts.

OHB reports its Q4 01 earnings on 2/11/02. What do you think is going to happen to its stock price during the later part of this month?

OHB is relatively cheep at $6.20, because their EPS for Q3 01 was quite a bit lower than WLS or BZH. But I expect their EPS to be quite a bit higher for Q4 01. Their P/E is 8.8, right in line with the rest of the industry. I wouldn't be surprised to see their stock price double in a month if their EPS comes in at what I think it just might.

I will be loading up on OHB this week as I liquidate other holdings. Come on along for the ride.

RS



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