LEN trade ideas
Lennar Corp has trouble meeting demand, LONG LONG LONG Quit simply homebuilders are a safe investment, trading at extremely low P/E ratio's while in turn new home sales are near a 12 year high.
The reduction in interest rates have had a immediate effect on demand, to the point that demand is outpacing supply.
First time buyers are back in the market making the big jump when conditions are so favourable.
The refinancing of existing finance is also increasing demand as others decide to upscale.
P/E RATIO 9.6
SHORT INTEREST 4.5%
AVERAGE ANALYSTS RATING BUY
AVERAGE ANALYSTS PRICE TARGET $60
COMPANY PROFILE
Lennar Corp. is a homebuilder company, which engages in the provision of real estate related financial and investment management services. It operates through the following segment: Lennar Financial Services, Lennar Multifamily and Rialto. The Lennar Financial Services segment focuses on the mortgage financing, title insurance and closing services for both buyers of homes and others. The Lennar Multifamily develops, constructs and manages property of multifamily rental. The Rialto segment involves in raising, investing, and managing third-party capital, originating, and selling into securitizations commercial mortgage loans. The company was founded by Gene Fisher and Arnold Paul Rosen in 1954 and is headquartered in Miami, FL
Lennar Corp Breaking out.Highly dependent on consumer sentiment and interest rates, LEN has benefited recently from the interest rate culling which looks set to continue, adding to the stimulus is the extremely low unemployment rate in the USA which in turn adds to demand on new housing. We see $62 as a possible upside target.
Lennar Corp. is a homebuilder company, which engages in the provision of real estate related financial and investment management services. It operates through the following segment: Lennar Financial Services, Lennar Multifamily and Rialto. The Lennar Financial Services segment focuses on the mortgage financing, title insurance and closing services for both buyers of homes and others. The Lennar Multifamily develops, constructs and manages property of multifamily rental. The Rialto segment involves in raising, investing, and managing third-party capital, originating, and selling into securitizations commercial mortgage loans. The company was founded by Gene Fisher and Arnold Paul Rosen in 1954 and is headquartered in Miami, FL.
DynamicIn the short term I see a rising dynamic afer the failed attempt to break up. This seems to be another probably successful attempt.
LEN - Bull Put Spread - Weekly & Daily Chart SetupWeekly & Daily setup so should have high probability.!
Weekly (W) Chart shows Price Action (PA) sell off last few weeks towards Lower BB% .
W RSI Oversold and previous S& R level of 47 to 47.50
On Daily (D). PA has been consolidating at S&R level and right on 200 MA.
As usual, Looking for reversal to mean back higher.
Aiming for 47.5/45 Put Credit & 50 Call option for Directional bias higher.
Exp Aug 16 but selling to close in Profit well before that.!
Good Luck - Watch YOUR RISK
LEN LENNAR: We Nailed This One: Looking to Stick to the PlanSee previous earnings with Reverse H&S similar to today's.
Both going into Monthly H&S, so we think after a nice pump from Reverse H&S B/O this am and a big profit we will be able to move to the short side with some very cheap puts. The green line (lower priced green line) is the measured move, but we will prob fall a bit short and then start reversing.
JUST TRADE THE RANGE, AND IT'S NOW AT THE TOP.From a technical perspective they indicators are all bearish and as earnings approach next week commentary is also very bearish which is never a good sign pre earnings, analysts never usually risk looking like fools.
Last week, analysts at Wedbush upgraded their home builder view, noting that with hearty consumer demand for housing, a supportive economy, low rates, and “reasonable” valuations, “investors should be willing to pay a higher multiple” for homebuilder stocks.
Not so fast, said a Raymond James analyst on Tuesday.
“Ahead of next week’s earnings reports from Lennar LEN, -2.62% and KB Home KBH, -3.49% , we are highlighting our increased near-term caution with the homebuilding sector by preemptively lowering ratings on the aforementioned names,” “Valuations are now trading above cyclical median multiples,” Buck Horne wrote.
AVERAGE ANALYSTS PRICE TARGET $58
AVERAGE ANALYSTS RECOMMENDATION BUY
P/E RATIO 9.39
COMPANY PROFILE
Lennar Corp. is a homebuilder company, which engages in the provision of real estate related financial and investment management services. It operates through the following segment: Lennar Financial Services, Lennar Multifamily and Rialto. The Lennar Financial Services segment focuses on the mortgage financing, title insurance and closing services for both buyers of homes and others. The Lennar Multifamily develops, constructs and manages property of multifamily rental. The Rialto segment involves in raising, investing, and managing third-party capital, originating, and selling into securitizations commercial mortgage loans. The company was founded by Gene Fisher and Arnold Paul Rosen in 1954 and is headquartered in Miami, FL.
LEN (My first publicaton)It just cannot maintain a position above its September level. RSI/price relation does show signs of a bearish divergence. I don't think it would hurt to buy a put.
short biggest home builder in late stage economic cycle.Lennar corp is becoming a short candidate since it seems like the FED will continue raising rates in 2019 and home building stats are proving to be sluggish as well. Home prices have peaked and consumers will need to tighten their belts in USA in the months to come,(1st quarter)after holiday season.
Technically, the price has been showing a consensus of uncentainty with most recently a major upside of selling volume.
I will be looking for a price entry when the baseline support gets penetrated on a 2nd,3rd or 4th attempt to the down side.
Be aware that if FED Powell decides to opt for a dovish tone on December 19th and keep the interest rate at 2.25%, the stock might get a little momentum on the long side for a short period of time.
Overall, I do believe that the economic fundamentals will weight significantly on that homebuilding sector due the fact that credit will be contracting more in the months to come.
$LEN Housing Rolling OverDouble top, 6 year trendline broke, and cut through support at $50. Downside incoming.
$LEN Downside IncomingLennar showing a massive double top and is currently sitting on support at $48 - looks poised to head lower.
US equities - 5th wave or top?Here's another US stock where there is a possibility of a 5th wave about to get going in my opinion. I have included a bearish alternative count (in red) that would suggest the polar opposite. As ever, the markets always allow to different outcomes.
Huge earnings surpriseEPS of $1.58 (beat by $1.13) and rev of $5.46B (beat by $350M). Positive trend line on the monthly should hold, IMO. Chart is currently oversold and should begin a new uptrend.
time to build new homes, like we did in 07 ! (1)this is a booring construction company, it has been consolidating forever, breakout i believe will come within 1 year
