Hey Value Investors,
Everyone and their mom is buying NVDA or MU and chasing the next hot stock. IDK it all moves too fast for me. Going to try and write this and resist the urge to use AI.
LEN a home builder in USA is trading BELOW 1 Price to Book ratio. What does that mean? THE ENTIRE MARKET CAP is below its equity amount on the Balance Sheet. You can step in and sell the entire company RIGHT NOW! And get more than its current market cap on stock markets roughly. Right now the stock is at $81 its fmv at liquidation is $91. That's $10 or roughly 12% of FREE money not accounting anything else!
This compounded with the huge HOUSING SHORTAGE in the USA means they are sitting at the next bottle neck beyond the AI bottle necks the great housing bottle neck.
Bearish case, the rates rising will slow down some home buying but there's multiple ways LEN is mitigating this and using it as an opportunity to steal market share from the smaller builders who can't buy down rates for home buyers.
As always do your own DD