While the housing recovery will not be without its hiccups, BofA and its ilk are starting to draw some benefit from the housing market, after years of watching it wreak havoc on their operating performance and balance sheets.
So, he looks for stocks of producers with low costs, good balance sheets and solid management, operating in regions with favorable political jurisdictions.
With plenty of free cash flow and strong balance sheets, the companies listed above, despite being in a very volatile industry with high operating leverage, would seem to be able to weather all but the most extreme technology slumps.