At around the $19.60 level today, REH is not far off $20.
Only a year ago, its capital raising was $7.60.
Hard to know if the ASX generally is getting ahead of itself. It's best that stocks are valued on intellectually supportable prospects and fundamentals, not because 10000 Millennials or generation Zs with little or no experience in investing on markets choose to pile in after some anonymous investment recommendation.
REH has a good record of surprising on the upside. Whatever one thinks of 'the fall on aircraft steps guy' Joe Biden as President - I am not a fan, and especially not of radical socialist Vice President Kamala Harris - there can be little doubt that the proposed infrastructure spending over there will (in the short and medium term) benefit many companies, so REH will be looking for a slice.
So far, the transformation of its USA operations to 'the Reece way' seems to be going well, although ongoing viral challenges must be a problem.
The Australian business is pretty solid, with the Federal Coalition Government's HomeBuilder and various infrastructure projects as bedrocks. Lower apartment starts and probable lower activity in commercial construction don't seem to be major drawbacks, although neither situation for REH is ideal.
President Biden wants to raise the corporate tax take in the USA by increasing the rate of tax. How this affects REH (and its customers!) is yet to be seen.
The A$ fall to just above US$0.76 should help (on balance).
A 250 per cent rise on that issue price of April 2020 is a huge gain.
REH remains a hold in my humble view. Some may take the view that it's still an accumulate, especially on any share price weakness. DYOR.
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