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Lennar Corp. (NYSE:LEN) is set to report earnings on Tuesday, September 25, 2007.  If you can find any great positive calls ahead of this it is only from an analyst named Pangloss. 

If the actual earnings estimates even matter, the official numbers from First Call are -$0.55 EPS and $2.39 Billion.  We already know of the continued losses, credit crunch, cancelled contracts, unapproved buyers, property option losses and even the mortgage financing tricks and incentives.  Everything is expected to look bad in the report.  It will just boil down to whether or BAD will lead to fears of insolvency and/or how long the company says it can ride the current trends.  This will be a true kitchen sink quarter, no pun intended.

Lennar has exposure to good markets and bad markets alike: Florida, Maryland, New Jersey, Virginia, Arizona, Colorado, Texas, California, Nevada, Illinois, Minnesota, New York, North Carolina, and South Carolina.

Lennar closed down at $24.18, under the prior $24.45 52-week low.  The 52-week high is $56.64.  BY a measure of market cap of common stock, Lennar is one of the top in homebuilders.  Standard Pacific (NYSE:SPF) was knocked down to 52-week lows after it said it was eliminating its dividend to pay down debt.  This also crushed the housing ETF: The SPDR S&P Homebuilders ETF (AMEX:XHB).

• Hovnanian: The Big House Giveaway

• Many Housing Stocks Still Hitting Lows (CTX, DHI, KBH, LEN, RYL, MHO, BECN, BLDR, MAS, XHB)

• Can this help?   After More Than 90% Plunges, Investors May Be Nibbling In Mortgage Land (LUM, LEND, NLY)

Jon C. Ogg
September 24, 2007