Tuesday, June 26, 2007

Lennar's Losses

Surprise, Surprise. Earlier today, Lennar announced it’s quarterly earnings, a loss of $244.2 million:

“Lennar Corp. said Tuesday it swung to a quarterly loss, blaming impairment charges and growing inventories of homes for sale which are pushing prices lower and further squeezing margins.”

Last Wednesday, I suggested that the savvy investor might sell (or short) Lennar and other homebuilders, citing inventory as a major factor. If you haven’t yet, you still have a chance. There will be many more quarterly earnings reports painted red before the market recovers. Next up is KB Homes, which is supposed to report earnings on Thursday morning. We shall see.

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