Just 7 months ago, I brought up Beazer Homes as a potential value opportunity. This was a profitable home builder trading at an enormous discount to book value. While it's still a profitable home builder, the discount has eroded significantly.
The stock price is up about 50% since that piece was written, and nothing overly dramatic occurred to make that happen. The company used some of the profits from its busy season to pay down debt, and Mr. Market decided to bid the thing up big time.
Beazer represented my favourite type of bet: current earnings made it look cheap, but even if those had fallen apart, the downside was to a large extent protected by tangible property.
While the company still trades at a discount to book, part of that consists of deferred tax assets that come in over time, and so need to be reduced to present value accordingly. I found some greener pastures for my investment so I decided to sell out of it.
Disclosure: No position