Crypto Whales Are Loading Up — Are You?
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Five Point Overview
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Tale Of The Tape - Past Year
While noting the unique nature of the Five Point real estate holdings, Dahl felt that land developer Howard Hughes Corp. (NYSE: HHC) would still be the closest comp for the Five Point IPO.- Noting that Howard Hughes trades at 2.7x TBV (tangible book value), Dahl estimated the value of Five Point to Lennar at $4 to $6 per share.
- Credit Suisse had previously valued the Lennar interests in Five Point to be worth $2 to $3 per share; in a sense confirming that this IPO is a positive move, which should help unlock value for Lennar shareholders.
- Credit Suisse sees the transaction as having little or no effect on Lennar's core homebuilding business, since LEN has already had to compete with other builders to buy developed lots from Five Point.
- Dahl believes that the IPO will make it easier for shareholders to assess the value of the JV's, while noting that there will be a 12 month lock-up for the IPO shares, which would delay monetization of any actual gains.
- The Five Point IPO is expected to occur prior to the end of Lennar's fiscal year.
Credit Suisse - Price Target Risks
Risks to Lennar achieving the $53 PT include: "1) On the positive side, stronger than expected sales, lower mortgage rates, or greater than expected income from LEN's multi-family and/or distressed asset investments; 2) On the negative side, higher mortgage rates, lower consumer confidence, or tightened mortgage lending standards; and 3) Drawn out resolutions in its distressed investments, leading to lower than expected returns."Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.