MDC This homebuilder is up 6% on news that new home orders for July and August are up an amazing 75% yoy. No wonder lumber prices have been so strong.
LEN came out with earnings and a nice beat: Q3 GAAP EPS of $2.12 beats by $0.56. Revenue of $5.87B (+0.2% Y/Y) beats by $340M. They also increased guidance. Buy the rumor, sell the news though as this one is down about 2% now.
Lennar also has an interesting price anomaly on its two classes of stock. LEN and LEN.B. Both are exactly the same except that LEN.B has 10X the voting rights of LEN. One would think, if anything, LEN.B might trade at a slight premium. But no, it trades at a 20% discount to LEN. A couple activist groups who hold LEN.B are after Lennar to convert all B shares into A shares, so that could be a possible trade although Lennar has resisted doing this in the past. The CEO owns most of the LEN.B shares so he would ironically benefit the most if they did consolidate them.
