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$9.71 0.71 (7.89%)
10/10/2008 4:02 PM

Lennar Corp (LEN)

CAPS Rating:
*

Primarily sell single-family attached and detached homes, and to a lesser extent, condominiums, in communities targeted to first-time, move-up and active adult homebuyers.

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Recs

5

Avatar scmahon (90.10) Submitted: 8/28/06 10:37 PM : Underperform Start Price: $42.72 LEN Score: 45.42

It's going to get worse before it gets better. Sure it has a low P/E, but that's attractive only if one assumes earnings will be flat or increasing. But I don't think this will be the case. The rising supply in housing, plus the rising rates, plus the already high prices have chased away both the real and speculative demand. Granted, I live in California so my assessment is stilted toward extreme pessimism. But overall I don't see the same earnings power over the intermediate term.

In many ways, these homebuilder stocks are cyclicals. I would be looking at these when their P/Es look historically high (that is, when earnings have been depressed for awhile).

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Avatar GS751 (92.35) Submitted: 10/08/07 8:07 PM

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nothing is going to get better anytime soon in the housing industry

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