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Press release from PR Newswire

S&P Equity Research Picks Lennar Corp. 'A' Shares Focus Stock of the Week

Monday, July 26, 2010

S&P Equity Research Picks Lennar Corp. 'A' Shares Focus Stock of the Week16:05 EDT Monday, July 26, 2010NEW YORK, July 26 /PRNewswire/ -- Lennar Corp. Class A shares (LEN:  $15) have been picked by Standard & Poor's Equity Research as its Focus Stock of the Week.  LEN carries S&P's highest investment recommendation of 5-STARS, or Strong Buy. "We expect this U.S. homebuilder to benefit from its diversified geography for selling new homes and other real estate-related investments, despite high unemployment rates, increased foreclosures, and tightening credit standards," said Kenneth Leon, Homebuilders Equity Analyst at Standard & Poor's Equity Research.  "In our opinion, the U.S. housing market is beginning to stabilize and homebuyers can take advantage of increased affordability resulting from declining home prices, a large supply of inventory, and historically low interest rates for home mortgages."  Leon observes that in the last two quarters Lennar has realized positive growth in net new orders and contract backlog, with the latter increasing to $655 million at May 31, 2010 from $455 million at the end of its fiscal year in November 2009.  He says this is the company's highest level for backlog since August 2008.  Leon notes that backlog in some ways is a good indicator of a company's likely sales and earnings for the next several quarters, as it is derived by subtracting current-period closings from the sum of all existing orders that have not yet been closed.  "We believe Lennar can achieve profitability with reduced sales incentives and lower construction costs on new scaled-down homes coming to the market," said Mr. Leon.  "We expect the company to be opportunistic in new land purchases or option land contracts, with abundant land coming to market from banks that took possession of distressed or bankrupt private homebuilders."To view a video of Mr. Leon discussing LEN, paste the following link in to your browser.  http://link.delvenetworks.com/media/?mediaId=14e667ed49f843e8b73f1554d119715e&width=480&height=411&playerForm=DelvePlayer About Standard & Poor's Equity Research ServicesAs the world's largest producer of independent equity research, Standard & Poor's licenses its research to global institutions for their investors and advisors.  Standard & Poor's team of experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of multi-asset class securities across industries worldwide.  Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's.  Standard & Poor's does not trade for its own account.  The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at www.standardandpoors.com or by clicking here. About Standard & Poor'sStandard & Poor's Financial Services, LLC, a subsidiary of The McGraw-Hill Companies, Inc.(NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for  150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.All information provided by Standard & Poor's is impersonal and not tailored to the needs of any person, entity or group of persons.  Past performance is no indication of future results. Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.S&P Global STARS DistributionIn North AmericaAs of June 30, 2010, research analysts at Standard & Poor's Equity Research Services North America recommended 38.2% of issuers with buy recommendations, 52.2% with hold recommendations and 9.6% with sell recommendations.In EuropeAs of June 30, 2010, research analysts at Standard & Poor's Equity Research Services Europe recommended 35.7% of issuers with buy recommendations, 40.7% with hold recommendations and 23.6% with sell recommendations.In AsiaAs of June 30, 2010 research analysts at Standard & Poor's Equity Research Services Asia recommended 45.3% of issuers with buy recommendations, 48.3% with hold recommendations and 6.4% with sell recommendations.GloballyAs of June 30, 2010, research analysts at Standard & Poor's Equity Research Services globally recommended 38.4% of issuers with buy recommendations, 49.8% with hold recommendations and 11.8% with sell recommendations.5-STARS (Strong Buy): Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.4-STARS (Buy): Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.3-STARS (Hold): Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.2-STARS (Sell): Total return is expected to underperform the total return of a relevant benchmark over the coming 12 months, and the share price is not anticipated to show a gain.1-STARS (Strong Sell): Total return is expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.Relevant benchmarks: In North America, the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe 350 Index and the S&P Asia 50 Index.This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.This material is based upon information that we consider to be reliable, but neither S&P nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. 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