Shorting LEN @ $56.25
2% position
When we shorted Pulte (PHM), we said we might short another homebuilder. Lennar is possibly the nation's largest homebuilder - depending on how you measure or what year you look at.
Lennar builds homes for the value-conscious buyer. We've looked at quite a few Lennar homes. Their selling point is "everything's included". They don't really upsell you on "design" where you pick cabinet pulls, cabinet doors, faucets, and more. They have basically 2-3 packages and that's it. Easy, but not as customizable. At a pretty fair price.
Once you accept what Lennar does, you appreciate it. We hated Lennar at first, but came to appreciate their offering after doing the math on the other builders and realizing Lennar offers a pretty good value.
That said, the stock is a short here. Tough to see homebuilders doing well in a deep recession or depression.
There are more homebuilders to short - but we're also now pretty heavily short the sector. Until we find some long positions, we're unlikely to short more in this sector and this one might be flipped quickly.
2% position
When we shorted Pulte (PHM), we said we might short another homebuilder. Lennar is possibly the nation's largest homebuilder - depending on how you measure or what year you look at.
Lennar builds homes for the value-conscious buyer. We've looked at quite a few Lennar homes. Their selling point is "everything's included". They don't really upsell you on "design" where you pick cabinet pulls, cabinet doors, faucets, and more. They have basically 2-3 packages and that's it. Easy, but not as customizable. At a pretty fair price.
Once you accept what Lennar does, you appreciate it. We hated Lennar at first, but came to appreciate their offering after doing the math on the other builders and realizing Lennar offers a pretty good value.
That said, the stock is a short here. Tough to see homebuilders doing well in a deep recession or depression.
There are more homebuilders to short - but we're also now pretty heavily short the sector. Until we find some long positions, we're unlikely to short more in this sector and this one might be flipped quickly.
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