Levitt Corporation (LEV)

Company

"Levitt Corporation is the parent company of Levitt and Sons(R) and Core Communities. Levitt Corporation also holds an aggregate 31% ownership interest in Bluegreen Corporation. Levitt and Sons(R), America's first builder of planned suburban communities, is best known for creating New York's Levittown, Long Island and has built approximately 200,000 homes over the last 77 years. Today, Levitt and Sons(R) develops single and multi-family home communities for active adults and families in Florida, Georgia, Tennessee, and South Carolina. A significant portion of Levitt's strategy is to be a leader in developing communities for America's next, big demographic wave: retirement of the baby-boom generation. These communities typically feature a wide variety of amenities, including resort style pools, fitness and athletic facilities, and grand clubhouses. Core Communities develops master-planned communities, including its original and best known, St. Lucie West. Core Communities' newest master-planned community is Tradition(TM) Florida. Now under development on Florida's Treasure Coast in St. Lucie County, Tradition(TM) is an 8,200-acre community that is planned to ultimately feature up to 18,000 residences as well as a commercial town center and a world-class corporate park. Core has also begun development of Tradition(TM) South Carolina, an approximate 5,400-acre parcel of land located adjacent to Hilton Head Island and Bluffton, South Carolina that is planned to ultimately include up to 9,500 residences and 1.5 million square feet of commercial space." (company website)

LEV 3-month stock chart

Sell short

Levitt shares lost about half their value last year and have been bumping along unable to stay above the 50-day moving average. With the slowdown in the housing market, I'm guessing that there may be another bottom or even a breakdown.

  • Price momentum (PPO) — negative
  • Trend (ADX) — selling pressure (-DI) rising again
  • Money flow (CMF) — modest outflow for over a month
  • Relative strength (RSI) — has held at neutral or below
  • Volume — average steadily declining

Based on technical analysis, MarketEdge calls LEV a "short candidate" in a "weak downtrend."

Sell

loss Bottom line
-20%
LEV LEV after the open

Ouch! I got the short end of the stock on this one! News before the bell that BFC would acquire LEV in an all-stock deal, valuing LEV at $14.41, drove LEV shares through the roof. It was up $3 in early trading. I knew that if I let my buy-to-cover order go through at market, I would really take a bath at the highest offer; I cancelled the automatic order and waited to see what would happen after the bell.

After trading started, the price of LEV came down a bit, and I was able to cover at $13.50 for a loss of 20%. Within half and hour, LEV shares were trading above $14 (see left).