Lennar Corp. (LEN-N)

Sold it for Canadian tax reasons. LEN spun off the part of the company that held the land, probably a good move, but he wasn't sure about the tax hit. He still likes the US homebuilders given the shortage of housing.

Still holds. Last month brutal for homebuilders. Though interest rates drifting lower, clear that won't be going as low or as fast as the market first thought. So the interest-sensitives are being punished. Yet mortgages are going up, somewhat negative for homebuilders. 

Long US mortgages cause resale market to dry up, but will eventually force home buyers to homebuilders. He's looking closely to see if this is an opportunity to increase his holding in homebuilders.

It reports Wednesday. The housing stocks were hammered this weak about Toll Brothers reported a weak quarter and were downgraded. Also, mortgage rates remain stubbornly high.

Economically sensitive, rate sensitive. If you have a 5-10 year horizon, US housing is still underbuilt. Still more valuation upside. Since 2008, all in the space have become higher quality and more of a manufacturing business.

They report Thursday. He expects the homebuilder to tell a terrific story. If the Fed cuts 50 basis points the day before, LEN could be a terrific place to be.

Cash flow yield of 11% and strong technicals.

Is up today, likely from guidance from Toll Brothers. Are lots of tailwinds for homebuilders: falling interest rates and Kamala Harris' pledge in this scetor.

They report Monday. Housing the linchpin of the economy and prices keep climbing. We need to hear if they will build more homes or keep the supply so tight that housing prices won't come down. The buildings are limiting supply to keep gross margins up and prices up, but it's terrible to fight inflation. Housing stocks have hung up because we have a housing shortage, but how long can this last when we see pushback on the prices of other items like dining out, apparel and airline tickets, all of which have risen dramatically in the last 5 years.

Shares have done phenomenally. He likes the space, has more indirect exposure through building supply stores rather than homebuilders. Shortage of homes in US. Trading at 10x next year's earnings, not expensive.

Expects continued balance sheet strengthening more. Free cash is strong as is new home orders, 25-30% up. Palantir said that Lennar is using their AI.

Remarkable story and she expects a good quarter and upside surprise. Trades at 11x earnings while the group is 9-11x. She prefers Home Depot, the laggard, but likes housing overall due to the housing shortage in the U.S., especially when rates come down.