While its Q4 net loss was down to $811 million from the year-ago period of $1.3 billion, LEN's building backlog fell 60% while new orders are down 46%.
Rumors that a group from the United Arab Emirates had hired Goldman Sachs to buy Lennar caused a spike in its stock price.
In an effort to weather the turbulent housing market, Lennar began selling land and homes at discounted values in order to increase its cash reserves. Doing so will give it financial flexibility and collateral should the market situation get worse.
Moody's cuts Lennar to junk status, saying it expects weakness in housing at least until 2009.