December 2016

[admin]

Yesterday, we published this:

• The shares of mortgage software provider Ellie Mae have sold off strongly on rising bond yields.
• While the shares are still anything but cheap (especially on a GAAP basis), we think the sell-off is a little overdone.
• It remains to be seen how far bond yields will rise, to what extent that will slow the housing market, and how that will impact Ellie's earnings.
• If history is any guide, the latter will not suffer all that much.

Sell-Off In Ellie Mae Provides An Opportunity - Ellie Mae, Inc. (NYSEMKT:ELLI) | Seeking Alpha

Now we read this:

Sales of previously owned U.S. homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed Wednesday.

U.S. Existing-Home Sales Climb to Highest Since Early 2007 - Bloomberg