In a market that is begging to rebound, investors are looking towards some of the nation’s largest home builders for inspiring news of what may lay ahead for 2010. Although there is not much hope of seeing profits within the home building industry just yet, there are whispers of a potential rebound due to the reduction of losses that were reported for the fourth quarter of last year.
Lennar Corp. is currently the nation’s third largest homebuilder. In 2008, they reported a $5.12 loss per share. The news for 2009 was far better than expected. Lennar reported only a $.47 loss per share for the last quarter ending on Nov 30. Analysts are predicting that the company just may return to profitability in 2010. This is a huge mile marker; it is a sign that there may just be a heart beat once again in this market.
If investors begin to feel comfortable about coming to the homebuilders table with money in hand, others in the market just may follow. The domino effect is what drives the market. Many skeptical onlookers hold their position until they see tried and tested investors make their move. It is the “you first” syndrome. Why be first to risk your money, when you can wait to see how larger investors react to inspirational tidbits within the market.
The skepticism about investing in new home construction is warranted. A peek back to 2005 tells a story of an investor’s worst nightmare. Like the case of Lennar Corp. At the height of the housing bubble Lennar, Shares traded at $70 each. Once the bubble busted shares were being offloaded as low as $5.50 per share. Now they are hovering at $12-414. Credit Suisse’s annalists are upgrading Lennar stock to outperform this year. This is positive move up from their prior listing of “neutral”. Representatives of credit Suisse are stating that this show of optimism in the company is due to favorable gross markings and strong cost controls.
Come take a look at our Fort Myers home builders. If you are not able to find anything in the city of Fort Myers you can take a look at more Florida home builders in other cities around the state.
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