This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks Everyone Hates -- But You Should Love

Stocks in this article: JCPLENUACMGSWY

Lennar

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Homebuilders haven't exactly won the favor of most investors over the last few years. Lennar (LEN) is no exception -- the $6.2 billion builder focuses on the entry level of the housing market, building value-focused homes across the country.

That positioning is a big part of why the firm's short interest ratio sits at 7.9; right now, it would take almost two weeks of frenzied buying for short sellers to cover their bets against this stock.

>>6 Housing Stocks With Curbside Appeal

While positioning along the low end of the housing spectrum meant that Lennar went through some post-bubble pain, the firm's positioning looks good now. It's a buyer's market, and potential homeowners are looking for value -- an offering that's right up Lennar's alley. The firm's balance sheet is rife with attractive property that's ready for development, as well as finished homes that it's moving at an increasingly quick rate right now.

Like most of its peers, Lennar bit the bullet back in 2008 and 2009, getting rid of properties on its balance sheet at small profits or at losses just in order to build its cash reserves back up. Now, with around $1.4 billion in cash and investments offsetting a $4 billion building debt position, the firm is in solid enough financial shape to make it through any economic turbulence. That positioning makes the firm a good short squeeze candidate.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs