FICO's grip on mortgage credit scoring is being challenged by a rival called VantageScore, which casts enough doubt on its ability to keep raising prices and holding market share that the author thinks the stock โ down 72% and now trading around fair value โ isn't yet cheap enough to buy without seeing clearer signs of how that competition plays out.
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The Bear Cave is betting against Lennar because it appears to be propping up its sales numbers by offloading unsold homes to Millrose Properties, a company it spun off, which then rents those homes out at what looks like a loss โ suggesting Lennar is using a financial sleight of hand to make its business look healthier than it is.
Millrose Properties, the land-banking company Lennar recently spun off, has been buying roughly $200 million worth of Lennar homes in just a month and renting them out at what appears to be a loss, leading the Bear Cave to bet against the stock on the grounds that this business model isn't financially sustainable.