S&P REITERATES SELL OPINION ON LENNAR SHARES S&P Marketscope
SNPMarketScopeResearchNotes2008-01-24 11:46:00.000LENLENNAR CORP'A'K. Leon-CPAS&P REITERATES SELL OPINION ON LENNAR SHARESLEN posts Nov-Q loss per share of $7.92 vs. a loss of $1.24, including writeoffs of $1.1B in land, land options, investment in joint ventures and goodwill. We believe more writedowns are likely in FY 08 (Nov.) with LEN's high level of joint venture investments. In Nov-Q, there was a year-over-year decline of 39% in new orders, 30% in contract cancellations and 50% in revenues. We see a 33% sales decline in FY 08, and we are raising our loss estimate to $7.35 from $2.75. Applying 0.5X price-to-book, near peers, to a value of $24, we are keeping our 12-month target price at $12.|US;LEN|17002|182582
You are absolutely correct; however, you might agree that it will help advance the PPS of the more solid HB's in the near future. Again, if you want to short a HB then short HOV or BZH. Both are grossly overextended at this time and might not even be around this time next year. A much better bet than LEN.