Picky about homebuliders: Buy Ryland

Ryland avoided the worst of the housing crisis due to geographic diversity in it's land portfolio, and selective development. Since then Ryland Homes has waited for turnaround in the market.

Now Ryland has communities being built in desirable areas and thus should expect high demand during a turnaround.

Ryland has 36.7% debt to value ratio, and $300m cash on the balance sheet. There has been a 40% increase in orders in the 2nd Quarter of 2012 with a positive outlook for the future. The company expects to be solidly profitable through the end of this year and into 2013. The author is long RYL at $29.24.