Lennar's stock = doo doo / voodoo

November 21, 2008 by mike

I was reading the LEN yahoo stock discussion boards this morning showcasing Lennar's outlook as being dim at best. Today their stock is floating around $3.50 and the comments left online would make anyone owning Lennar stock queasy just owning a stake in this company. It is my prediction as the months roll on that more bankruptcies are sure to follow. As the foreclosure rate skyrockets and more and more banks get desperate to sell off inventory to recover monies, Lennar's competition will ultimately be the banks which I feel is kinda ironic in a sense. Lennar keeps building new homes and the market is already saturated. Would you buy a new home or a 2-3 year old home foreclosed on for much less? I think the choice is quite obvious. The question is, does Lennar Corporation have the monetary foundation to make it through this epidemic? My gut says not a chance. They will pull out and cut their losses just like they sold off their inventory in the past for 40 cents on the dollar.