LGI Homes, Inc. (LGIH): A Bear Case Theory 

We came across a bearish thesis on LGI Homes, Inc. on Hunterbrook’s Substack. In this article, we will summarize the bulls’ thesis on LGIH. LGI Homes, Inc.'s share was trading at $52.29 as of September 29th. LGIH’s trailing and forward P/E were 7.86 and 12.97 respectively according to Yahoo Finance.

LGI Homes has built its business on a model targeting renters with aggressively marketed deceptively low home prices that omit key costs such as taxes, insurance, and HOA fees. The company’s strategy, which it calls the “LGI Way,” relies on a high-pressure, scripted sales...