Standard Pacific Corp. (SPF)

All Comments on SPF

  • commenter
    Frustrated
    Lennar Owner
    Mar 11 06:52 AM
    Housing Market Tracker - Homeowners Fighting Back Against Homebuilders [view article]
    We own a Lennar Home in VA and our subdivision seems to have been mothballed. WARNING to everyone even considering buying a Lennar home read your covenant & restrictions very carefully, ours our written so one sided that Lennar has no responsibility to us and their voting rights are 100 per lot to our one. IF they ever get close to finishing the development they can keep 8 lots and still maintain control of everything. They can raise our HOA fees to cover any expense and have no liability to cover any deficit at the end of the year. We are suppose to have an audit done within four months from the end of the fiscal year which will be at the end of April and they haven't even hired an auditor yet and are being told by the ones they have called that it can't be done until November. We waited for the past two years audits for a over a year. Their attitude is "so what" there isn't anything you can do to us. This is a a 55+ community located in Fredericksburg, VA called Virginia Heritage at Lee's Parke, BUYERS BEWARE! Reply
  • commenter
    User 160851
    Mar 06 09:29 AM
    My Website
    Housing Market Tracker: Most Homebuilders, But Not All, Still Pessimistic [view article]
    it's a good idea Reply
  • commenter
    Kunst
    Mar 03 12:41 AM
    Housing Bulls' Indiscriminant Appetite May Cause Heartburn [view article]
    No problem, Hartwell. You buy the long side. Reply
  • commenter
    ACapitalist
    Feb 29 02:25 PM
    Interesting Response to the Government's Homebuilder Bailout [view article]
    Generaly, write downs in value are not tax deductable so only the losses that arise from actual sales losses are will result in tax refunds. There are builders, as well as financial companies, that are selling assets at losses to get those tax refunds. However the vast majority of the losses being reported are just mark to market adjustments. Reply
  • commenter
    SHartwell
    Feb 28 03:49 PM
    Housing Bulls' Indiscriminant Appetite May Cause Heartburn [view article]
    What a load of hogwash by someone trying to talk down a stock they're short.
    Reply
  • commenter
    Augustus
    Feb 28 08:29 AM
    Housing Bulls' Indiscriminant Appetite May Cause Heartburn [view article]
    One of the more difficult problems with the builders is trying to figure out how much call back work they have to cover. All of that expense gets buried in the financials - not particularly hidden, just melded in with other costs of operations. So, now that sales volumes are declining, everyone they sold to over the last couple of years is underwater on the sales price and has no love for the builder anyway, I expect that these expenses will really escalate and drive expenses higher. An unhappy customer with a $500,000 item can find a lot of things to nit pick over if they want to try to punish the builder. Reply
  • commenter
    mmcguire
    Feb 27 04:02 PM
    My Website
    Housing Market Tracker - Homebuilder Rally: Prescient Markets or Desperate Investors? [view article]
    I see you mentioned Reynen & Bardis and the lawsuit by Sacramento County. We have been discussing Reynen & Bardis over at murietaonline.com and there is several other lawsuits going after this builders. Including a lawsuit be Bank of the West that show Reynen & Bardis owes $750,000,000 in debt. Even when the market was good these guys were not. Reply
  • commenter
    WAKEUP
    Feb 18 01:56 PM
    Housing Market Tracker - Homebuilder Mortgages and Steep Price Cuts [view article]
    "Going, going..." Reply
  • commenter
    SoCalsurfbum
    Feb 12 01:14 PM
    Standard Pacific’s Fiscal House Needs Restructuring [view article]
    Why do you think they would do Ch 11 and not Ch 7 bankruptcy? Usually, Ch 11 happens when the underlying business is still good, but the operational cost structure was managed poorly.

    The problem with StanPac is not that their operational cost structure is broken… The problem with StanPac is that they loaded themselves up with assets that are only worth a fraction of what they paid for them... this cannot be solved with a contract re-negotiation or a debt restructure. The situation that this has caused is that StanPac is selling houses and land for less than they paid for them. Even if all debt is forgiven tomorrow, Standard Pacific’s continuing operations are running cash-flow negative.

    And entering bankruptcy the creditors have a decision to make…

    1. Liquidate the company (Ch 7) who’s only real value is in the assets, (especially in this market… the ability to build homes is not a unique, desirable, or profitable skill in the foreseeable future) and be the first ones out before other companies go bankrupt and flood the market and depress prices even more. If they close shop and sell the assets they do not have to fund the on-going operations and overhead which just keeps burning more of their money… and with negative margins and falling housing prices, recovering any of the cost of overhead looks like a long-shot at best…

    Or

    2. The creditors take control of the operations from the current shareholders (Ch 11) and then sell off the company assets in a less “liquidation sale” type way and hopefully recuperate more money... after drastically reducing overhead. This only works if the company can find a way to get positive gross margins. I would think this approach is less likely because it is riskier. The Ch 11 proceedings take a long time and if they finally decide to liquidate a year or two from now… who knows how much the asset prices will have fallen. And you are still paying overhead.     Reply
  • commenter
    Matt
    Blackman
    Feb 10 04:40 PM
    My Website
    Housing Market Tracker - False Bottom for Homebuilders? [view article]
    Sorry, the last link didn't work properly. Here is the link to the chart showing technicals and fundamentals for the index of 26 US homebuilders - tradesystemguru.com/co... Reply
  • commenter
    Matt
    Blackman
    Feb 10 04:35 PM
    My Website
    Housing Market Tracker - False Bottom for Homebuilders? [view article]
    This latest homebuilder rally is very similar to the last bear rally that sucked in investors between July 06 and April 07. It turned out to be false because the fundamentals continued to deteriorate.

    Here is a chart of the homebuilders index of 26 builders (VectorVest) as it looked as of the week of February 8 (see tinyurl.com/2e7794 ). Given that sales and home prices continue fall across the country and the economy is weakening, I do not see any mechanism that could boost homebuilder fundamentals anytime soon... In other words, this rally stands the same chance of being sustained as the last one...
    Matt Blackman - Host TradeSystemGuru.com     Reply
  • commenter
    User 121302
    Feb 09 07:26 PM
    Housing Market Tracker - False Bottom for Homebuilders? [view article]
    Yes, it is a false bottom for homebuilders. Those people who bought stock in the homebuilders this month and last (Jan/Feb 2008) will do fine if they hold the stock through 2008 and 2009 when the builders are still going to lose billions.

    Think about it! It's about buyers and affordability. No buyers and houses cost too much. To give some builders credit, I have seen ads listing homes in California at $199,000. But are these give away, at a loss pricing? Yes, I think so.

    Only when builders build homes people can afford will the carnage end.

    Cities and counties need to make homebuilding attractive, like for example lowering developer fees. I have been reading planning commission and city council meeting minutes. When a city demands a fire truck from the developer, and when the city demands the developer pay for public art, the prices are passed on to the homebuyer.

    Also, protecting the pot-bellied, snaggly puss toad wailer raises the cost to the developer and homebuyer because you have to keep the swamp or meadow for the toad wailer to wallow about.

    Also, what would the housing prices be if they weren't built with illegal immigrant labor? It seems no one cares that Espanola is the major language spoken at construction sites. Everyone keeps an eye closed in order to get the house sold, the commission made, profits generated for Wall Street, and fees paid to the city, and property taxes for the counties.

    I see major problems ahead with loan resets into 2008 and 2009. Also, will America allow construction jobs to go to illegal immigrants again? Couldn't legal citizens get these jobs?

    I just can't help thinking, if a house cost $1 million dollars using illegal immigrant labor, what would it cost using American labor?

    If builders can't build an affordable house using legal labor, how are they going to lower housing building costs?

    Are the cities and counties, who are responsible for some of the high cost of housing, going to back off on demanding so much from the developer? Or are these leaders content to gouge the developers (and the property tax payers)?

    In summary, how can you buy stock in the financial companies and the builders when both have lost millions and will lose millions more?

    Once the vast majorities of folks wake up and realize their property values are going down, they will get angry. They will feel they were suckered into buying a house that won't see the high values of 2006 for years down the road. Meanwhile, they are stuck with a mortgage draining their paychecks.

    And all the candidates will seize upon the economy as the area to fix; yet these same politicians passed the 2005 Bankruptcy Act to make it more difficult for people to eliminate stress and hounding creditors. Credit card companies loved the 2005 Bankruptcy Act that our beloved Congress passed.

    Don't trust words coming out of these candidates. I just read where some of the biggest lenders and banks contributed millions to both parties (roughly 70% to the Democrats and 30% to the Republicans). Do you trust these politicians running for office to help you out when the banks and lenders are paying their election campaign money needs?

    Don't spend.

    Don't spend your rebate.

    However, many will need to spend their rebate because many folks are hurting.
    Save your money.

    Demand property tax cuts and refunds.

    Vote no on bond issues (bonds are debt).

    Vote no on tax increases.

    Vote no on every liberal spender (Democrats mostly, but some Republicans as well).

    Remember the names of your county supervisor that added taxes without your permission, such as the 911-phone tax surcharge in Santa Clara County, California.

    Demand higher homestead exemption rates on residences.

    Demand homestead exemption rate increases tied to an annual cost of living expenses.

    Demand Congress reel in the interest rates and practices of all the credit card companies.

    Demand employers of illegal immigrants be fined heavily and jailed.

    In summary, the housing and financial sectors haven’t hit the bottom. It will be a campaign issue all year. The mortgage meltdown will reek havoc with millions of current homeowners, 402(k) holders, and pension plan members.

    Maybe if Hillary shares her secret of how two Arkansas lawyers wound up with S10 to 25 million in assets, it might help the rest of us to prosper instead of suffer.

    But as of this time, Hillary refuses to release her income tax records. Why not? Obama did.

    Is there something she wants to hide? What’s with these profits from Dubai, an Arab country that we were so afraid of, we did not consummate the port deal with them.

    If Hillary is running on experience, why doesn’t she share her experience of making the big bucks?


     Reply
  • commenter
    gordon
    Feb 09 11:19 AM
    Housing Market Tracker - False Bottom for Homebuilders? [view article]
    We work for Lennar, our biggest account.(So.Calif) all is dead, only one project opening this year. This was a short-covering rally is all, from 1990-94 we witnessed a credit crunch similar. Our home dropped 30+%, we didn't complain and beg for a handout.Anyone in this industry like us since 1980 knows it's boom & bust and prepares for it.
    The bogus "hope" programs is only stalling what should happen NOW, these over-leveraged buyers should mail in the leys and rebuild their credit, renting at 1/2 or less what their payment is. Nobody lied in 1990 by telling us our values wouldn't drop. This is the most corrupt deceptive administration in history, promising what is pure fantasy, further ruining lives, many of these buyers never made(80%!) their first payment, even before a reset. Many didn't even know they owned the house, they thought they were renting, to own later. Both are lies. Any attempts to freeze the initial rates is a violation of contract laws, for Clinton to suggest this is an outrage. No investor will ever buy a mortgage-backed bond for income again. To think judges have the capacity with their case loads to adjust their rates in bankruptcy court is also a pathetic outrage, we never had these desperate attempts in 1990 to keep people in homes they couldn't afford.     Reply
  • commenter
    wallmann
    Feb 08 08:46 AM
    My Website
    Housing Market Tracker - False Bottom for Homebuilders? [view article]
    I agree, in most regions of the US house prices will continue fall for most of 2008 and then I believe we will be looking at two years of flat prices before they start to inch upward. At that time, I feel many foreign investors will come in and scoop up a lot of our real estate and why not, they own so much of our debt now!

    IBuyProperties.blogspo...     Reply
  • commenter
    whatajoke
    Feb 07 02:06 PM
    Can't Short XHB? Create Your Own Homebuilders ETF to Short [view article]
    One of the most useful columns I've read on this website. The credit markets are pricing in much more pain for the homebuilders, and several of them will be bankrupt soon enough as their earnings disappear, their ability to refinance debt is severely reduced, and the cash they are hoarding now is eliminated as they are forced to finally pay down their debt. Reply
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