Miami-based homebuilder, Lennar (LEN) just finished a big week on Friday. In fact, Lennar has enjoyed a nice year. On October 21 of 2011, LEN was trading at $16.73 per share. Friday’s closing price was $38.73. As a result, during the past year Lennar’s stock price has advanced by just over 131 percent. When the opening bell rang on Monday, October 15, LEN was trading at $36.32 per share. By the closing bell on Friday, Lennar’s stock had risen 6.6 percent for the week.
The week ending on October 19 was an important one for Lennar. On Wednesday, October 17, the Commerce Department’s Census Bureau reported that privately-owned housing starts for September increased by 15 percent above the revised August estimate. The seasonally-adjusted annual rate (SAAR) of 872,000 new starts increased by an enormous 34.8 percent above the SAAR for September of 2011. The 603,000 single-family housing starts for September was an 11-percent increase from August’s revised figure and the highest this total has reached since August of 2008. Building permit authorizations for September increased by 11 percent, providing evidence that this acceleration in home construction has some traction.
Lennar’s share price has been soaring well above its 50-day moving average, which – as of this writing – is 34.61. LEN has a Relative Strength Index of 66.27 with 70 having been its RSI resistance level since July.
The major American stock indices had a horrible day on Friday, as disappointing earnings reports from Microsoft (MSFT), GE and McDonalds (MCD) established a dangerously bearish mood, considering that it was an options expiration day.
The Dow Jones Industrial Average took a 205-point nosedive on Friday to close at 13,343 for a loss of 1.52 percent. The S&P 500 declined by 1.66 percent to finish at 1,433. The NASDAQ Composite sank 2.19 percent to end the day at 3,005.
With the exception of Lennar (LEN), Miami-based corporations had a dismal day on Friday. Lennar (LEN) advanced by 13 basis points (0.13 percent) to close at 38.73. Carnival Cruise Lines sank by 1.60 percent to finish at 38.19. Royal Caribbean (RCL) sank by 1.72 percent to close at 32.01. Ryder System (R) fell 1.85 percent to end the day at 43.52.
The following companies will be playing “beat the number” on Monday, with the release of their quarterly earnings reports: Caterpillar (CAT), Crane Company (CR), Freeport McMoran Copper (FCX), Hasbro (HAS), Lennox (LII), SunTrust (STI), Texas Instruments (TXN), Western Digital (WDC) and Yahoo ( YHOO). Good luck!