Today Lennar reported revenue numbers that were quite strong. This report seems to be quite different than what KB Homes reported last week, which is exactly what KB’s management discussed last week by saying that most of their problems were internal, or were the result of their mortgage affiliates struggles to get deals done. Lennar made a brilliant move similar to what they did in previous real estate downturns, with the creation of their Rialto unit which buys distressed assets. This unit has boosted profits tremendously providing needed cash flow as the new home market turns.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.