Standard Pacific Corp. (SPF)

[eastunder]

Existing Home Sales Drop
Eric Rosenbaum
06/22/10 - 10:20 AM EDT

http://www.thestreet.com/_yahoo/story/10788736/1/trade-homebuilder-stocks-for-a-day.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

NEW YORK (TheStreet) -- Existing home sales were down in May by more than 2%, defying the expectation of most economists who predicted a rise to a level above 6 million units. The just-under 5.7 million units of existing homes sold in May was well below the consensus estimate of close to 6.2 million. The April figure for existing home sales was upwardly revised to 5.8 million units. The April sales gain was 8%.

Lawrence Yun, National Association of Realtors (NAR) chief economist, said even amid a down month in May, the year over year increase in home sales was a positive, and there will be lingering elevated home sales data as a result of short-term market delays. "We are witnessing the ongoing effects of the home buyer tax credit, which we'll also see in June real estate closings." Yun said that difficulty in securing mortgages for short sales have caused delays, and those delays may show up in the June numbers also.

"In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance," Yun said.

Even if short-term delays may lead to lumpiness in the home sales data, it isn't expected to be apparent as a positive in the other big piece of U.S. housing market data, due out Wednesday.

On Wednesday, new home sales data for May will be released, and that report is not expected to be a particularly good one, given the end of the federal homebuyer tax credit.

The Wednesday new home sales data may be the worst in 47 years, according to Stifel Nicolaus, which is predicting a drop of 41% month over month, though its estimate is 30% below the consensus. The consensus is 423,000 units, with Stifel Nicolaus at 295,000 units sold.

Pending home sales are expected to decline notable in May and June also, the NAR said.

Historically, the homebuilders stocks have been owned primarily by institutions, but with the extreme volatility in the shares over the past two years, the homebuilder stocks have turned into a trading proxy for the U.S. economic recovery.

Still, valuations of the homebuilder stocks are low points. Many of the homebuilder stocks are near 52-week lows and most of the group trading near or below adjusted book value.

Two big homebuilder earnings reports on due out on Thursday and Friday too, from Lennar(LEN) and KB Home(LBH),giving investors another reason to remain on the sidelines with homebuilders stocks and the sometimes surprising data reports.

Some of the more active homebuilder stocks in recent trading have been Standard Pacific(SPF), M.D.C. Holdings(MDC), PulteGroup(PHM) and D.R. Horton(DHI).

Stocks of the homebuilders were not noticeably lower in the immediate wake of the existing home sales report.

[eastunder]

Housing Starts Sputter; Builders Tense

http://www.smartmoney.com/Investing/Stocks/housing-starts-sputter-builders-tense/?afl=yahoo

Housing starts and home construction declined in May, as the end of a federal tax credit for home buyers halted a recent uptick in purchases.

Those dips could be particularly disconcerting for investors who had been banking on a smooth housing recovery. Major builders' stocks such as Hovnanian Enterprises (HOV: 4.67*, -0.08, -1.68%), D.R. Horton (DHI: 10.90*, -0.34, -3.02%) and Standard Pacific (SPF: 4.02*, -0.06, -1.47%) ebbed slightly after the data were released, widening losses since an early spring boom.

Market observers now warn there's a real possibility the housing sector could lag again without government support. Tight credit, continuing high unemployment and a large supply of foreclosed homes could mean another downturn for the already battered sector.

The Commerce Department on Wednesday reported a 10% drop in May housing starts, to a seasonally adjusted 593,000. It also reported a decline in new building permits a month after the April 30 expiration of an $8,000 tax credit for first-time home buyers and other incentive programs. Single-family home starts slid 17.2%, to their lowest level in a year.

None of the builders mentioned in this story commented on the data.

Economists expected housing starts to decline only 5.2%, to 637,000, though housing analyst David Urani at Wall Street Strategies said he thought the post-tax credit expectations for improvement were too high.

"I was surprised that consensus was that high, because we'd already seen a lot of evidence that mortgage applications were down, and home builder confidence was down, and it was always obvious that starts were going to be down," he said. "I think maybe there was a sense that despite the [expiration of the] tax credit, there was still some natural demand."

Jack McCabe, an independent housing analyst and president of McCabe Research & Consulting in Deerfield Beach, Fla., said the tax credits simply shifted buyers' timing. High unemployment and the difficulty of getting a mortgage as banks tighten credit kept his purchase estimates for the entire year at a low level.

"People who were saying 'We're going to buy a house this year' decided they might as well take advantage of the tax credit," he said. "It just moved the sales up. It's not like the buying pool increased."

[eastunder]

SPF

[eastunder]

SPF: Gap down on open at 4.66

[eastunder]

Standard Pacific Corp. Announces Redemption of 6 1/2% Senior Notes due 2010, 6 7/8% Senior Notes due 2011 and 7 3/4% Senior Notes due 2013

Tuesday , May 04, 2010 08:01ET



IRVINE, Calif., May 4, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) announced that it will redeem for cash all of its outstanding 6 1/2% Senior Notes due 2010, 6 7/8% Senior Notes due 2011 and 7 3/4% Senior Notes due 2013. The redemption date for the 2010 and 2011 notes will be June 2, 2010 and the redemption date for the 2013 notes will be June 3, 2010. The redemption price for each series of notes will be determined in accordance with the indenture governing such notes. A notice of redemption is being mailed to all registered holders of the 2010, 2011 and 2013 notes. The notice, among other matters, describes the mechanics for calculating the applicable redemption price. Copies of the notice of redemption may be obtained from The Bank of New York Mellon Trust Company, N.A. by calling 1-800-254-2826. The notice of redemption of the 2013 notes does not change or amend the Company's current tender offer for the 2013 notes, which is being made pursuant to the Offer to Purchase, dated April 20, 2010, and is scheduled to expire at 5:00 p.m., New York City time, on May 18, 2010, unless extended.


This announcement is for informational purposes only and is not an offer to purchase or sell or a solicitation of an offer to purchase or sell, with respect to any securities.


About Standard Pacific

Standard Pacific, one of the nation's largest homebuilders, has built more than 110,000 homes during its 44-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada.

[eastunder]

Standard Pacific Corp. Announces Early Tender Results for Its Tender Offer for Any and All of Its 7 3/4% Notes Due 2013

Tuesday , May 04, 2010 08:00ET



IRVINE, Calif., May 4, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced the early tender results of its previously announced cash tender offer (the "Tender Offer") for its 7 3/4% Notes due March 15, 2013 (the "Notes"). As of the Tender Offer's early tender deadline of 5:00 p.m., New York City time, on May 3, 2010, according to information provided by the depositary, approximately $89.5 million aggregate principal amount of the Notes had been validly tendered.


The Tender Offer is being made upon the terms and conditions in the Offer to Purchase dated April 20, 2010. The conditions to the Tender Offer, including the financing condition, have been satisfied, and the Company has accepted all of the Notes validly tendered at or prior to the early tender deadline for payment.


The Tender Offer will expire at 5:00 p.m., New York City time, on May 18, 2010, unless extended. The Company will pay $1,012.92 per $1,000 principal amount of Notes validly tendered between the early tender deadline and the expiration time.


The Company also announced today that it has given notice of redemption to holders of the Notes, pursuant to the terms of the indenture governing the Notes. The Company will redeem any Notes not tendered and accepted for purchase in the Tender Offer on June 3, 2010. Under the indenture governing the Notes, the Notes outstanding on June 2, 2010 are now due and payable on such date at the redemption price of $1,012.92 per $1,000 principal amount.


Holders whose Notes are purchased in the Tender Offer or are redeemed will also be entitled to accrued and unpaid interest on their Notes to, but not including, the date their Notes are purchased or redeemed, as applicable.


None of the Company, its board of directors, Global Bondholder Services Corporation, or the trustee with respect to the Notes is making any recommendation as to whether holders of the Notes should tender any Notes in the Tender Offer. Holders of the Notes must make their own decision as to whether to tender their Notes, and, if so, the principal amount of Notes to tender.


This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, the Notes. The Tender Offer is being made solely by the Offer to Purchase dated April 20, 2010. The full details of the Tender Offer, including complete instructions on how to tender the Notes, are included in the Offer to Purchase. Holders of the Notes are strongly encouraged to read carefully the Offer to Purchase because it contains important information. Requests for documents and questions regarding the Tender Offer may be directed to Global Bondholder Services Corporation at [phone] (collect) or [phone] (toll free).

[ap223]

One month chart sure looks nice. The DPO is higher than it's ever been. The stock price is staying above the 10 and 30 day Ma. It also continues to ride the top of the envelope. Nice run going.

[eastunder]

Finviz chart

And that places us above a resistance line

[eastunder]

Sector Snap: Builder stocks leap on home sale data
Shares of homebuilders soar after govt says new home sales rose 27 pct in March

On Friday April 23, 2010, 12:23 pm

NEW YORK (AP) -- Shares of homebuilders surged Friday after the government said sales of new homes rebounded strongly in March from the slowest pace on record in February, thanks to improving weather and federal tax credits.

The recovery in the housing sector has been rocky. Industry groups and economists worry that home prices may drop again after federal tax credits end this month. Mortgage rates, still historically low around 5 percent, may also start to rise because the Federal Reserve has stopped holding rates down, which reduced borrowing costs.

The Commerce Department said Friday that new home sales in March rose 27 percent to a seasonally adjusted annual sales pace of 411,000. That's the strongest showing since July, as well as the biggest month-over-month increase in 47 years.

February's sales pace of 324,000 had been an all-time low, weighed down by stormy winter weather on the East Coast.

Meanwhile, the number of months needed to work through the glut of new homes on the market fell from 8.6 in February to 6.7 in March, the best reading since December 2006, said IHS Global Insight economist Jim Dorsey.

Hovnanian Enterprises Inc. led homebuilder stock gains, rising 65 cents, or 9.9 percent, to $7.22 in midday trading. Standard Pacific Corp. added 43 cents, or 7 percent, to $6.59; Pulte Group Inc. climbed 65 cents, or 5.2 percent, to $13.13; Lennar Corp. gained 92 cents, or 4.7 percent, to $20.66; Meritage Homes Corp. rose 95 cents, or 4.3 percent, to $23.24; and Toll Brothers Inc. traded up 71 cents, or 3.2 percent, to $23.11.

Shares of Beazer Homes USA Inc., KB Home, DR Horton Inc. and Ryland Group Inc. also rose by midday Friday. Horton was trading at $14.09, up 40 cents, or 2.9 percent. Beazer was trading at $6.64, up 29 cents, or 4.4 percent. KB Home was trading at $19.36, up 50 cents, or 2.7 percent. And Ryland rose 95 cents, or 3.9 percent, to $25.59.

Still, the median period it took to sell a home remained at a record high of 14.4 months in March.

"For builders... market conditions remain brutal," Dorsey wrote in a research note Friday.

[eastunder]

SPF: Filed New Form 424B2, Rule 424-b2 Prospectus

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6902772

This filing goes with the announcement made April 21, 2010

(Link back for original PR)

[eastunder]

Thank you, Alan. I appreciate that.

I was surprised I got a little behind on those. Normally I catch everything as it comes out.

Sorry about that!

If you find any news regarding SPF, whether it's positive or negative, please feel free to post it.

Jen

[ap223]

Eastunder - I've only been a share holder for a couple of weeks and have been following this board for the same amount of time. Just wanted to say thanks for all your time updating info on the company. I don't post very often. Just like to read. You seem to do a great job. Thanks again. Alan

[MRJOJO58]

just for kicks i put in ah sell order in for 5k, while i was gone, 2701 sold at 6.33, changed the rest to 6.53.

[eastunder]

Charts of homebuilders for sector watch

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43475724

[eastunder]

Economists Forecast 5.2% Sequential Home Sales Growth In March
On Thursday April 22, 2010, 8:57 am EDT

Homebuyers are running out of time to take advantage of government incentives, and that's led to a pickup in activity as the April 30 deadline approaches. According to the Associated Press, economists are expecting the National Association of Realtors to report that 5.28 million previously occupied homes were sold in March, a 5.2% increase over February.

Investors also appear optimistic for new home sales, sending the Homebuilder Stocks Index higher by 9.4% over the past month. Hovnanian Enterprises (NYSE: HOV - News), Standard Pacific (NYSE: SPF - News), and Beazer Homes (NYSE: BZH - News) have led the rally with gains of 30% or more.

Peripheral plays on the homebuyer tax credits could also benefit from an eleventh-hour rush to take advantage of incentives. The Home Improvement Retail Stocks Index has surged higher by 17.3% in the last month, though giants Home Depot (NYSE: HD - News) and Lowes (NYSE: LOW - News) are among laggards, gaining less than 10%.

Meanwhile, Pier 1 Imports (NYSE:PIR - News), Kirkland's (NASDAQ: KIRK - News), and Williams Sonoma (NYSE: WSM - News) have led the Home Furnishing Retailer Stocks Index with double-digit, one-month spikes. As a whole, the Index is now outperforming the S&P 500 by more than 15% for the period.

[eastunder]

Board is now updated with news from the last few days

[eastunder]

SPF: Filed New Form FWP

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6900804

[eastunder]

Standard Pacific Corp. Announces increase and Pricing of $300 Million Senior Notes Due 2018

Wednesday, April 21, 2010 19:53ET

IRVINE, Calif., April 21, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced the pricing of its previously announced public offering of senior notes due 2018 and the increase in the amount of the offering to $300 million aggregate principal amount of notes. J.P. Morgan Securities Inc. is acting as sole bookrunning manager and Broadpoint.Gleacher as co-manager for the offering.

The notes will pay interest semi-annually at a rate of 8.375% per year and will mature on May 15, 2018, unless earlier repurchased. The notes will be senior obligations of the Company and secured by a pledge of the equity interests of certain of its subsidiaries. In addition, the notes will be guaranteed on a senior basis by substantially all of the Company's subsidiaries that have guaranteed the Company's existing notes.

The Company intends to use a portion of the net proceeds of the offering to purchase through a tender offer any and all of the Company's outstanding senior notes due 2013, and to redeem any such notes that are not validly tendered and accepted for payment in the tender offer, and to redeem all of the Company's outstanding senior notes due 2010 and 2011. Any remaining proceeds are expected to be used to repay approximately $105.3 million of the Company's outstanding intercompany indebtedness.


The offering is expected to close on May 3, 2010, subject to customary closing conditions.

[eastunder]

Fitch Expects to Rate Standard Pacific's $200MM Sr. Unsecured Notes 'B-/RR4'

Tuesday , April 20, 2010 17:45ET

http://www.knobias.com/story.htm?eid=3.1.c7f3792604ebc6423db66b33606230c116f0531cd942b854a8c3a12424a503e5

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings expects to assign a 'B-/RR4' rating to Standard Pacific Corp.'s (NYSE: SPF) proposed offering of $200 million of senior unsecured notes due 2018. The issue will be ranked on a pari passu basis with all other senior unsecured debt. The proceeds from the notes offering will be used to purchase through a tender offer any and all of the company's outstanding 2013 notes and to redeem any such notes that are not validly tendered and accepted for payment in the tender offer, with the remaining proceeds to be used to repay approximately $73.2 million of the company's intercompany indebtedness.

Fitch's current Issuer Default Rating for Standard Pacific is 'B-'. The Rating Outlook is Stable.

The 'RR4' Recovery Rating (RR) on the company's unsecured debt indicates average recovery prospects for holders of these debt issues. Standard Pacific's exposure to claims made pursuant to performance bonds and joint venture debt and the possibility that part of these contingent liabilities would have a claim against the company's assets were considered in determining the recovery for the unsecured debt holders. Fitch applied a liquidation value analysis for these RR.

The ratings and Outlook for Standard Pacific reflect the company's healthy liquidity position, improved operating results and moderately stronger prospects for the housing sector this year.

The company generated $33.6 million of cash flow from operations during the first quarter of 2010 (1Q'10), including a tax refund of $108 million as a result of the tax legislation enacted in November 2009. The company ended the first quarter with unrestricted cash of $577.5 million. For all of fiscal 2010, Fitch expects Standard Pacific to be cash flow negative, excluding tax refunds, as the company starts to rebuild its land position (through land purchases and development spending). During the first quarter, the company spent $50.8 million on land purchases compared with $3.7 million last year. During the first quarter, Standard Pacific also approved the purchase of $105 million of land, comprised of approximately 1,800 lots, 76% of which are finished, 11% partially developed and 13% raw. As of March 31, 2010, the company had outstanding roughly $179 million of approved land purchases and option contracts, of which $113 million is expected to be purchased in 2010 and $66 million is expected to be purchased in 2011 and beyond. At a minimum, $164 million of land purchases is committed for acquisitions in 2010, with the potential for as much as $400 million of land purchases this year. By comparison, the company spent about $65 million in land purchases for all of 2009.

The company reported homebuilding revenues of $175.4 million during 1Q'10, a 16% decline compared to the same period last year. Total deliveries fell 22% while the average sales price increased 9% during the quarter. The increased average sales price was due primarily to a greater proportion of homes delivered within California during the quarter compared to last year. Gross margins, excluding impairment charges, improved 530 basis points to 22.7% during the first quarter. SG&A expenses as a percentage of sales improved to 18.7% compared with 25% last year. Standard Pacific reported a pre-tax loss of $5 million during 1Q'10 compared to a pre-tax loss of $48.7 million last year. The company did not record impairment charges during 1Q'10 and had $30.8 million of asset impairment charges last year. Net orders for the quarter increased 3% to 759 homes, and the company had 821 homes in backlog with a value of $278.3 million at the end of the first quarter. Cancellation rates continued to recede and the rate was 15% during 1Q'10 compared with 24% last year and 21% during the prior quarter.

Housing apparently bottomed during 2009, and a so far anemic recovery has begun. During the next 12-15 months off the bottom, the recovery may appear jaw-toothed as substantial foreclosures now in the pipeline present as distressed sales and as meaningful new foreclosures arise from Alt-A and option ARM resets. High unemployment rates and the tightening of certain Federal Housing Administration loan standards will be notable headwinds early in the upcycle. The continuation and expansion of the scope of the national housing credit may boost sales in spring of this year. And the Federal government's continuing efforts to modify foreclosures may finally show some success in 2010.

Future ratings and Outlooks will be influenced by broad housing market trends as well as company specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels and especially free cash flow trends and uses, and the company's cash position.

Applicable criteria available on Fitch's web site at 'www.fitchratings.com' include: 'Corporate Rating Methodology', dated Nov. 24, 2009.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.



Source: Fitch Ratings

[eastunder]

SPF: Filed New Form 424B5, Rule 424-b5 Prospectus

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6898540

[eastunder]

Standard Pacific Corp. Announces Tender Offer for Any and All of its 7 3/4% Notes Due 2013; Redemption Planned to Follow

Tuesday , April 20, 2010 16:14ET

IRVINE, Calif., April 20, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced the commencement of a cash tender offer (the "Tender Offer") for its 7 3/4% Notes due March 15, 2013 (the "Notes"). The Tender Offer will expire at 5:00 p.m., New York City time, on May 18, 2010 (the "Expiration Time"), unless extended. The Company is offering to purchase the Notes validly tendered at or prior to 5:00 p.m., New York City time, on May 3, 2010 (the "Early Tender Time"), for $1,015.00 per $1,000 principal amount, a premium of $2.08 above the redemption price of the Notes of $1,012.92 per $1,000 principal amount. If the conditions to the Tender Offer, including the financing condition, are satisfied at or prior to the Early Tender Time, promptly thereafter, the Company intends to accept for purchase, and pay for, the Notes validly tendered at or prior to the Early Tender Time. The Company is offering to purchase the Notes validly tendered between the Early Tender Time and the Expiration Time for $1,012.92 per $1,000 principal amount, and intends to accept for purchase, and pay for, such Notes, if any, promptly after the Expiration Time.

The Company also announced that, assuming the financing condition to the Tender Offer (discussed below) is satisfied, it intends to disseminate a notice of redemption to holders of the Notes on May 4, 2010. Upon dissemination of such redemption notice, any Notes remaining outstanding after consummation of the Tender Offer will become due and payable at the redemption price of $1,012.92 per $1,000 principal amount, pursuant to the terms of the indenture and supplemental indenture under which the Notes were issued. The Company intends to redeem the Notes and pay the aggregate redemption price to the trustee of the Notes on June 3, 2010. As a result, assuming the Tender Offer is consummated, and the unpurchased Notes are redeemed thereafter as planned, the Company expects that holders who tender their Notes in the Tender Offer will receive the consideration payable for their Notes before holders whose Notes are redeemed.

Holders whose Notes are purchased in the Tender Offer or are redeemed will also be entitled to accrued and unpaid interest on their Notes to, but not including, the date their Notes are purchased or redeemed, as applicable.

The Tender Offer is subject to the satisfaction or waiver of several conditions, including the receipt by the Company of net proceeds from a concurrent public offering of senior notes of the Company of not less than $125,000,000. The Company may waive or assert any condition to the Tender Offer, or elect not to redeem the Notes or to redeem only a portion of the Notes, in each case in its sole discretion.

The purpose of the Tender Offer and planned redemption of the Notes, together with the previously announced public offering of senior notes, is to lengthen the maturity profile of the Company's indebtedness.

The Tender Offer will be made upon the terms and conditions set forth in an Offer to Purchase dated April 20, 2010. Copies of the Offer to Purchase may be obtained at no charge from Global Bondholder Services Corporation, the depositary and information agent for the Tender Offer. Validly tendered Notes may not be withdrawn from the Tender Offer.

None of the Company, its board of directors, Global Bondholder Services Corporation, or the trustee with respect to the Notes is making any recommendation as to whether holders of the Notes should tender any Notes in the Tender Offer. Holders of the Notes must make their own decision as to whether to tender their Notes, and, if so, the principal amount of Notes to tender.

[eastunder]

Standard Pacific Corp. Announces Proposed Offering of $200 Million of Senior Notes Due 2018

Tuesday , April 20, 2010 16:11ET

IRVINE, Calif., April 20, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced the proposed public offering by the Company of $200 million aggregate principal amount of senior notes due 2018. J.P. Morgan Securities Inc. is acting as sole bookrunning manager and Broadpoint.Gleacher as co-manager for the proposed offering.

The interest rate and certain other pricing terms of the notes will be determined at the time of pricing of the offering by the Company and the underwriters. The notes will be senior obligations of the Company and secured by a pledge of the equity interests of certain of its subsidiaries. In addition, the notes will be guaranteed on a senior basis by substantially all of the Company's subsidiaries that have guaranteed the Company's existing notes.


The Company intends to use the net proceeds of the offering to purchase through a tender offer any and all of the Company's outstanding 2013 notes and to redeem any such notes that are not validly tendered and accepted for payment in the tender offer, with any remaining proceeds to be used to repay approximately $73.2 million of the Company's outstanding intercompany indebtedness.


This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offer will be made only by means of a prospectus supplement and related base prospectus or by a free writing prospectus in accordance with the rules of the Securities and Exchange Commission ("SEC").


Standard Pacific has filed a registration statement (including a prospectus) and will be filing a prospectus supplement with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus (including the prospectus supplement when available) in that registration statement and other documents Standard Pacific has filed with the SEC for more complete information about Standard Pacific and this offering. You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov. Alternatively, copies of the prospectus relating to the offering may be obtained from J.P. Morgan Securities Inc., 383 Madison Avenue, Floor 3, New York, New York 10179 or toll free at 1-800-245-8812.

[eastunder]

Fitch Upgrades Standard Pacific's IDR to 'B-'; Outlook to Stable

Tuesday , April 20, 2010 12:32ET

http://www.knobias.com/story.htm?eid=3.1.aea58d982482909139baaccee954cd6213e231f07e73df4defa9ed64b7b4fa1c

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded Standard Pacific Corp.'s (NYSE: SPF) Issuer Default Rating (IDR) and other outstanding debt ratings as follows:

--IDR to 'B-' from 'CCC';

--Senior unsecured debt to 'B-/RR4' from 'CC/RR5';

--Senior subordinated debt to 'CC/RR6' from 'C/RR6'.

The Rating Outlook has been revised to Stable from Negative.

The 'RR4' Recovery Rating (RR) on the company's unsecured debt indicates average recovery prospects for holders of these debt issues. Standard Pacific's exposure to claims made pursuant to performance bonds and joint venture debt and the possibility that part of these contingent liabilities would have a claim against the company's assets were considered in determining the recovery for the unsecured debt holders. The 'RR6' on Standard Pacific's senior subordinated notes indicate poor recovery prospects in a default scenario. Fitch applied a liquidation value analysis for these RRs.

The upgrade of Standard Pacific's IDR and the Outlook revision to Stable from Negative reflect the company's much healthier liquidity position, better than expected financial performance in recent quarters, improved operating results and moderately stronger prospects for the housing sector this year. Furthermore, Standard Pacific has also very sharply reduced its exposure to joint ventures (JVs) over the past two years.

The company generated $33.6 million of cash flow from operations during the first quarter of 2010 (1Q'10), including a tax refund of $108 million as a result of the tax legislation enacted in November 2009. The company ended the first quarter with unrestricted cash of $577.5 million. For all of fiscal 2010, Fitch expects Standard Pacific to be cash flow negative, excluding tax refunds, as the company starts to rebuild its land position (through land purchases and development spending). During the first quarter, the company spent $50.8 million on land purchases compared with $3.7 million last year. During the first quarter, Standard Pacific also approved the purchase of $105 million of land, comprised of approximately 1,800 lots, 76% of which are finished, 11% partially developed and 13% raw. As of March 31, 2010, the company had outstanding roughly $179 million of approved land purchases and option contracts, of which $113 million is expected to be purchased in 2010 and $66 million is expected to be purchased in 2011 and beyond. At a minimum, $164 million of land purchases is committed for acquisitions in 2010, with the potential for as much as $400 million of land purchases this year. By comparison, the company spent about $65 million in land purchases for all of 2009.

During 2009, the company repaid in full and terminated the revolving loan portion of its $330 million revolving credit facility and elected to reduce the letter of credit (LOC) commitment under the facility to $5 million. At Dec. 31, 2009, the company had four LOC facilities (including the $5 million revolving credit facility) that aggregated $65 million. These facilities had $14.7 million of LOCs outstanding that were secured by cash collateral deposits of $15.1 million. Consistent with Fitch's comment on homebuilders' termination of revolving credit facilities, in the absence of a revolving credit line, a consistently higher level of cash and equivalents than was typical should be maintained on the balance sheet, especially in these still uncertain times.

Standard Pacific reduced its debt levels by approximately $387 million since the end of 2008. More importantly, the company pushed out its near-term debt maturities by refinancing/paying down debt coming due in the next three years. Standard Pacific's debt maturities in the next two years are manageable at roughly $123 million. The company also reduced its exposure to JVs over the past two years. Total JV recourse debt was reduced from $173.9 million at Dec. 31, 2008 to $37.5 at March 31, 2010. (The company's JV recourse debt was $408.6 million at the end of 2007.)

The company reported homebuilding revenues of $175.4 million during 1Q'10, a 16% decline compared to the same period last year. Total deliveries fell 22% while the average sales price increased 9% during the quarter. The increased average sales price was due primarily to a greater proportion of homes delivered within California during the quarter compared to last year. Gross margins, excluding impairment charges, improved 530 basis points to 22.7% during the first quarter. SG&A expenses as a percentage of sales improved to 18.7% compared with 25% last year. Standard Pacific reported a pre-tax loss of $5 million during 1Q'10 compared to a pre-tax loss of $48.7 million last year. The company did not record impairment charges during 1Q'10 and had $30.8 million of asset impairment charges last year. Net orders for the quarter increased 3% to 759 homes, and the company had 821 homes in backlog with a value of $278.3 million at the end of the first quarter. Cancellation rates continued to recede and the rate was 15% during 1Q'10 compared with 24% last year and 21% during the prior quarter.

Housing apparently bottomed during 2009, and a so far anemic recovery has begun. During the next 12-15 months off the bottom, the recovery may appear jaw-toothed as substantial foreclosures now in the pipeline present as distressed sales and as meaningful new foreclosures arise from Alt-A and option ARM resets. High unemployment rates and the tightening of certain Federal Housing Administration loan standards will be notable headwinds early in the upcycle. The continuation and expansion of the scope of the national housing credit may boost sales in spring of this year. And the Federal government's continuing efforts to modify foreclosures may finally show some success in 2010.

Future ratings and Outlooks will be influenced by broad housing market trends as well as company specific activity, such as trends in land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, debt levels and especially free cash flow trends and uses, and the company's cash position.

Applicable criteria available on Fitch's web site at 'www.fitchratings.com' include: 'Corporate Rating Methodology', dated Nov. 24, 2009.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.



Source: Fitch Ratings

[MRJOJO58]

I hope your still holding, hit 6 today so far, and will climb much higher IMHO!

[eastunder]

In pre market I noticed a briefing.com report...which contradicted Knobias - the site I always use regarding earnings and the one I sticky noted.

Briefing reported it as a miss - knobias reported it as a beat...

Standard Pacific misses by $0.02, misses on revs
7:02 am ET 04/19/2010- Briefing.com
Reports Q1 (Jun) loss of $0.02 per share, $0.02 worse than the Thomson Reuters consensus of ($0.00); revenues fell 16.3% year/year to $175.4 mln vs the $279.4 mln consensus. Co says net new orders (excluding joint ventures) for the 2010 first quarter increased 3% from the 2009 first quarter to 759 homes, despite a 20% decrease in the number of average active selling communities, from 158 to 126

The articles I posted after the Knobias earnings were to collaborate knobias. Sorry if they seemed repetitive. :)

Jen

[eastunder]

UPDATE 1-Standard Pacific Q1 rev lags Street; shares down
Mon Apr 19, 2010 9:49am EDTStocks
Standard Pacific Corp.

http://www.reuters.com/article/idCNSGE63I0J820100419?rpc=44

* Q1 loss/shr $0.02 vs est loss/shr $0.06

* Rev down 16 pct to $175.4 mln vs est $184.1 mln

* Shares down as much as 4 pct

April 19 (Reuters) - Standard Pacific Corp (SPF.N) posted a narrower-than-expected quarterly loss, helped by lower expenses, but its revenue came in below analysts' estimates, sending the homebuilder's shares down as much as 4 percent.

For the first quarter, the company reported a loss of $5.1 million, or 2 cents a share, compared with a loss of $49.5 million, or 21 cents a share, a year ago.

Revenue fell 16 percent to $175.4 million, mainly due to a 22 percent decline in new home deliveries as the number of completed and unsold homes available for sale fell over last year, the company said.

Operating expenses fell 37 percent to $32.8 million.

Analysts on average had expected a loss of of 6 cents a share, before special items, on revenue of $184.1 million according to Thomson Reuters I/B/E/S.

Shares of the company were down 3 percent at $5.37 Monday morning on the New York Stock Exchange. They touched a low of $5.31 earlier in the session. (Reporting by Divya Sharma in Bangalore; Editing by Maju Samuel)

[eastunder]

Homebuilder Revenue Falls, Loss Narrows
Eric Rosenbaum
04/19/10 - 09:21 AM EDT

http://www.thestreet.com/print/story/10729156.html


IRVINE, Calif. (TheStreet) - Homebuilder Standard Pacific(SPF) is suppose to recover along with the housing market in the state of California. Early on Monday morning, the California-based homebuilder provided mixed signals in its first quarter earnings report, and improvement in California were not helping its shares.

Standard Pacific reported a narrower loss of two cents per share than the Street estimates of a six cent loss. However, Standard Pacific revenues came in light, at $175.4 million, versus a Street estimate of over $184 million for the first quarter.

Investors and analysts have been looking closely at new order growth for the past few quarters as an important sign of a rebound in the home market. Standard Pacific deliveries were down in the quarter, while order growth ticked up by a modest 3%. Cancellations in the first quarter were 15%, versus 24% for the 2009 first quarter and 21% for the 2009 fourth quarter.

California did buoy Standard Pacific's earnings in one respect. While revenue was down 16% from the first quarter 2009 level, and deliveries down 22%, the average home price rose by 9% to $326,000 in the first quarter, driven by home deliveries in California.

Standard Pacific's backlog (excluding joint ventures) increased 31% to $278.3 million, or 821 homes, compared to $212.2 million, or 689 homes, for the 2009 first quarter. The increase in backlog value was driven primarily by an increase in the number and average price of California homes in backlog.

Nevertheless, Standard Pacific shares were among the most active stocks early Monday morning, down more than 7%.

Gross margin improvement in the first quarter, to 22.7% versus 17.4% in the first quarter 2009, was also driven by the California deliveries increase and to a lesser extent, price increases in California.
Spending was down by $19.6 million, or 37%, to $32.8 million in the first quarter 2010, from $52.4 million in the 2009 first quarter, with lower costs in personnel and commissions.

Standard Pacific was also much more active acquiring land in the first quarter of 2010, with $50.8 million of land purchases, versus $3.7 million in 2009. During the 2010 first quarter, the Standard Pacific also approved the purchase of $105 million of land -- 1,800 lots, 76% of which are finished, 11% partially developed and 13% raw.

Ken Campbell, Standard pacific President and CEO said in the earnings statement, "I am pleased with our strong gross margins and reduced spending on overhead. I am also encouraged by the growth in our land opportunities at prices that meet our return thresholds."

-- Reported by Eric Rosenbaum in New York.

[eastunder]

I didn't think the report was that bad - but the market never cares what I think. :)

[eastunder]

Standard Pacific shares weak after quarterly loss
9:10 am ET 04/19/2010- MarketWatch Pulse News Bullet
BOSTON (MarketWatch) -- Shares of Standard Pacific Corp. were down as much as 8% in premarket trading Monday after the home builder reported a first-quarter net loss of $5.1 million, compared with a loss of $49.5 million in the year-ago period. The company said home deliveries totaled 537, down 22%. Net new orders rose 3% to 759 homes, Standard Pacific said

[eastunder]

Standard Pacific Corp. Reports 2010 First Quarter Results

Monday , April 19, 2010 07:00ET

IRVINE, Calif., April 19, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) today announced operating results for its first quarter ended March 31, 2010.


2010 First Quarter Highlights and Comparisons to the 2009 First Quarter

-- Net loss of $5.1 million vs. a net loss of $49.5 million
-- Homebuilding revenues of $175.4 million, down 16% from $209.5 million
-- 537 new home deliveries (excluding joint ventures), down 22% from 687
homes
-- Gross margin from home sales of 22.7% vs. 17.4%* (2009 first quarter
gross margin excludes $26.3 million of impairment charges)
-- Average home price of $326,000, up 9% from $300,000
-- Homebuilding SG&A expenses of $32.8 million, down 19% from $40.4
million* (excluding $12.0 million of restructuring charges in 2009)
-- Homebuilding SG&A rate from home sales of 18.7% vs. 19.6%* (2009 first
quarter excludes restructuring charges)
-- Net new orders (excluding joint ventures) up 3% to 759 homes
-- Backlog value (excluding joint ventures) up 31% to $278.3 million vs.
$212.2 million
-- 821 homes in backlog, up 19% from 689 homes
-- Cash flow from operating activities of $33.6 million vs. $129.0 million
-- $50.8 million of land purchases in 2010 vs. $3.7 million in 2009
-- Tax refund of $108 million vs. $114 million in 2009
-- $32.5 million reduction in homebuilding debt during the quarter
-- Homebuilding cash balance of $591.7 million
-- Adjusted net homebuilding debt to total capitalization ratio of 55.1%*
vs. 67.3%*



The Company generated a net loss of $5.1 million, or $0.02 per diluted share, for the 2010 first quarter compared to a net loss of $49.5 million, or $0.21 per diluted share, for the year earlier period. The primary drivers of the improved operating performance were higher gross margins, reduced asset impairments, higher average sales price and lower overhead costs. The 2009 first quarter results included $30.8 million of asset impairment charges, $14.1 million of restructuring charges and a $5.2 million gain on the early extinguishment of debt. The 2010 first quarter did not include any asset impairment or restructuring charges.


Homebuilding revenues for the 2010 first quarter were $175.4 million, down 16% from $209.5 million for the 2009 first quarter. The decrease in homebuilding revenues was driven primarily by a 22% decline in new home deliveries to 537 homes (exclusive of joint ventures). The decrease in deliveries was partially due to the significant reduction in the number of completed and unsold homes available for sale at the beginning of the 2010 first quarter as compared to the year earlier period and, to a lesser extent, a 7% decline in the 2010 first quarter beginning backlog as compared to the prior year period. The decline in deliveries was partially offset by a 9% increase in consolidated average home price to $326,000, largely due to a greater proportion of homes delivered within California during the quarter as compared to the 2009 first quarter.


Gross margin from home sales for the 2010 first quarter was 22.7% versus an adjusted gross margin from home sales for the year earlier period of 17.4%* (excluding $26.3 million of inventory impairments for the 2009 first quarter). The 530 basis point improvement in the 2010 first quarter gross margin from home sales was primarily the result of a larger mix of California deliveries, lower direct construction costs and, to a lesser extent, price increases in California. Excluding impairments and previously capitalized interest costs, gross margin from home sales for the 2010 first quarter was 29.2%* versus 23.7%* for the 2009 first quarter.


The Company's 2010 first quarter SG&A expenses (including Corporate G&A) decreased $19.6 million, or 37%, to $32.8 million from $52.4 million in the 2009 first quarter. The Company's 2009 first quarter SG&A expenses included $12.0 million in restructuring charges related to severance and lease terminations. The Company's 2010 first quarter SG&A rate from home sales was 18.7% versus an adjusted rate of 19.6%* (excluding restructuring charges for the 2009 first quarter). The reduction in the Company's SG&A expenses was primarily the result of lower personnel costs, commissions and model costs.


The Company generated $33.6 million of cash flows from operations for the 2010 first quarter versus $129.0 million for the year earlier period. The decline in cash flows as compared to the 2009 first quarter was driven primarily by a $47.1 million increase in land purchases and a 22% decline in deliveries resulting from a decrease in the number of unsold completed and under construction homes available for sale as of December 31, 2009 as compared to December 31, 2008. Cash flows from operations for the three months ended March 31, 2010 and 2009 included $50.8 million and $3.7 million, respectively, of land purchases and $108 million and $114 million, respectively, of federal tax refunds. Excluding land purchases and sales, cash flows from operations for the 2010 first quarter were $83.9 million* versus $132.1 million* in the year earlier period.


Net new orders (excluding joint ventures) for the 2010 first quarter increased 3% from the 2009 first quarter to 759 homes, despite a 20% decrease in the number of average active selling communities, from 158 to 126. The Company's monthly sales absorption rate for the 2010 first quarter was 2.0 per community compared to 1.5 per community for the 2009 first quarter. The Company's cancellation rate for the 2010 first quarter was 15% versus 24% for the 2009 first quarter and 21% for the 2009 fourth quarter. The total number of sales cancellations for the 2010 first quarter was 133, of which 60 cancellations related to homes in the Company's 2010 first quarter beginning backlog and 73 related to orders generated during the quarter.


The dollar value of the Company's backlog (excluding joint ventures) increased 31% to $278.3 million, or 821 homes, compared to $212.2 million, or 689 homes, for the 2009 first quarter. The increase in backlog value was driven primarily by an increase in the number and average price of California homes in backlog and, to a lesser extent, increased sales during the quarter.


During the 2010 first quarter, the Company approved the purchase of $105 million of land, comprised of approximately 1,800 lots, 76% of which are finished, 11% partially developed and 13% raw. Approximately 56% of the approved purchases are transactions with developers and 25% with banks. During the same period, the Company purchased approximately 940 lots valued at $51 million. Approximately 42% of the $51 million in land purchases related to land located in California and 37% in the Carolinas, with the balance spread throughout the Company's other operations. As of March 31, 2010, the Company had outstanding approximately $179 million of approved land purchases and option contracts, of which $113 million is expected to be purchased in 2010 and $66 million expected to be purchased in 2011 and beyond.


Ken Campbell, the Company's President and CEO commented, "I am pleased with our strong gross margins and reduced spending on overhead. I am also encouraged by the growth in our land opportunities at prices that meet our return thresholds."


Earnings Conference Call


A conference call to discuss the Company's 2010 first quarter will be held at 1:00 p.m. Eastern time Monday, April 19, 2010. The call will be broadcast live over the Internet and can be accessed through the Company's website at http://standardpacifichomes.com/ir. The call will also be accessible via telephone by dialing [phone] (domestic) or [phone] (international); Passcode: 2530604. The entire audio transmission with the synchronized slide presentation will be available on our website for replay within 2 to 3 hours following the live broadcast, and can be accessed by dialing [phone] (domestic) or [phone] (international); Passcode: 2530604.


About Standard Pacific


Standard Pacific, one of the nation's largest homebuilders, has built more than 110,000 homes during its 44-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada. For more information about the Company and its new home developments, please visit our website at: www.standardpacifichomes.com.

[eastunder]

SPF: Q1 EPS (2c) vs (21c) Beats (6c) Est

Monday , April 19, 2010 08:46ET

QUARTER RESULTS
Standard Pacific Corp. (SPF) reported Q1 results ended March 2010. Q1 Revenues were $175.37M; -16.31% vs yr-ago; MISSING revenue consensus by -3.32%. Q1 EPS was (2c); +90.48% vs yr-ago; BEATING earnings consensus by +66.67%.

Q1 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $175.37M      $209.54M     -16.31%      $181.40M      -3.32% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                (2c)         (21c)     +90.48%          (6c)     +66.67% 
 ----------  ------------  ------------  ----------  ------------  ----------

[MRJOJO58]

So, what do you think of the report? Down sharply in PM.

[eastunder]

SPF 1Q earnings 4-19-10 BMO

Meant to sticky note this

Standard Pacific Corp. Schedules 2010 First Quarter Results Conference Call and Webcast

Friday , April 09, 2010 15:20ET

IRVINE, Calif., April 9, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) will release its 2010 first quarter results before the opening of the NYSE on Monday, April 19, 2010. In conjunction with the earnings release, the Company will host a conference call and broadcast a slide show and audio presentation over the Internet on Monday, April 19, 2010, at 1:00 p.m. Eastern time.



Standard Pacific Corp. Conference Call and Webcast for 2010
What: First Quarter Results

When: Monday, April 19, 2010 at 1:00 p.m. Eastern time

http://standardpacifichomes.com/ir click on the Webcast
link. A replay of the presentation will be available by the end
Where: of the day and will be archived for 31 days.

Live via the Internet - log on to the above address. You may
listen to the Webcast by using streaming audio or by using the
following teleconference number: [phone] (domestic) or
[phone] (international); Passcode: 2530604. A replay of
the conference call will be available by dialing [phone]
(domestic) or [phone] (international); Passcode:
How: 2530604.

[MRJOJO58]

WooHoo, were Rich!

[MRJOJO58]

staying, earnings out early on monday, not to mention a few weeks early, they are anxious to report imo.

[eastunder]

Nice.

Trading or staying for awhile?

[MRJOJO58]

amen brother, in for 10k @ 4.98

[eastunder]

SPF 1Q earnings 4-19-10 BMO

Standard Pacific Corp. Schedules 2010 First Quarter Results Conference Call and Webcast

Friday , April 09, 2010 15:20ET

IRVINE, Calif., April 9, 2010 /PRNewswire-FirstCall/ -- Standard Pacific Corp. (NYSE: SPF) will release its 2010 first quarter results before the opening of the NYSE on Monday, April 19, 2010. In conjunction with the earnings release, the Company will host a conference call and broadcast a slide show and audio presentation over the Internet on Monday, April 19, 2010, at 1:00 p.m. Eastern time.



Standard Pacific Corp. Conference Call and Webcast for 2010
What: First Quarter Results

When: Monday, April 19, 2010 at 1:00 p.m. Eastern time

http://standardpacifichomes.com/ir click on the Webcast
link. A replay of the presentation will be available by the end
Where: of the day and will be archived for 31 days.

Live via the Internet - log on to the above address. You may
listen to the Webcast by using streaming audio or by using the
following teleconference number: [phone] (domestic) or
[phone] (international); Passcode: 2530604. A replay of
the conference call will be available by dialing [phone]
(domestic) or [phone] (international); Passcode:
How: 2530604.





Standard Pacific, one of the nation's largest homebuilders, has built more than 110,000 homes during its 44-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada. For more information about the Company and its new home developments, please visit our website at: www.standardpacifichomes.com.



Contact:
John Stephens, SVP & CFO [phone], [e-mail]





SOURCE Standard Pacific Corp.

[eastunder]

How to Play California’s Housing Rebound
Published: Tuesday, 6 Apr 2010 | 8:59 PM ET Text Size By: Tom Brennan
Web Editor, Mad Money

California, one of the worst-hit parts of the US during the downturn, is coming back to life, Cramer said Tuesday. The state’s population is growing again, its major ports are getting busier, and, yes, home prices in the Golden State are rising. He’s so excited about California’s prospects that he’s offering up a different way to play them all week.

Cramer's Top 12 Retail Stocks
Monday was retail, where he recommended Costco [COST 61.6175 -0.1225 (-0.2%) ], but today’s show focused on housing. In addition to that home-price stabilization, Cramer noticed another major change: homebuilders are building again.

According to a research note from J.P. Morgan, March inventories were up 8%. These companies wouldn’t build new properties unless they could sell them, Cramer said. And with inventory levels in the state still way below their peaks, there’s plenty of room to expand and sell some more.

So how do you play housing in California? Much the same way Cramer approached retail there: look for companies with at least 25% exposure to the state. That qualifies KB Home [KBH 16.46 -0.05 (-0.3%) ], with 38% of its end-of-2009 backlog in California, Lennar [LEN 17.30 0.01 (+0.06%) ] with 25% and Standard Pacific [SPF 5.12 0.39 (+8.25%) ] with 56%.

Standard Pacific may be the most speculative – it trades under $5 and is up 373% over the last 12 months – but it’s Cramer’s favorite of the group. The company fell as low as it did because it operates in the ground-zero states of the real estate collapse: California, Arizona and Florida. Things got so bad for SPF that it was forced to take some huge impairments on 59% of its assets and needed an equity infusion from private-equity firm Maitlin Patterson to stay afloat.

But things have changed for Standard Pacific, Cramer said. Its gross margins are back up to 20%, compared with 13% in 2008. The prices of its homes have increased an average of 5% in California. January sales were up 10% year-over-year. And the company is now expanding beyond its core areas, buying up huge tracts of land on the cheap.

Despite all this, analysts remain bearish, with two of the seven covering SPF rating it a “buy,” compared to three “holds” and two “sells.” But that just means the stock can shoot higher, Cramer said, as these bears convert to bulls. He recommended getting in ahead of that.

“The rebound in this state is for real,” Cramer said of California, “and I think you should play it with a turnaround homebuilder like Standard Pacific.”

[eastunder]

On Home Sales, Curb Your Enthusiasm

By Dawn Wotapka

Today’s data from the National Association of Realtors sure makes it seem like housing has hit the much-awaited bottom: Pending-home sales showed a surprising gain of 8.2% in February, as buyers responded to improved weather and the federal home-buyer tax credit.

Sales of homes entered into contract jumped by the largest margin in more than eight years, Weiss Research notes, with broad-based regional strength.

The excitement is understandable. Housing has been so bad for so long that it’s easy to get giddy over a great statistic. But, while this is good news, proceed with caution.

Much of the bump comes from the federal tax credit, which expires at the end of the month. “Cheap homes and cheap financing are gradually bringing out buyers,” Mike Larson, real estate and interest rate analyst at Weiss Research, wrote in a client note.

While there might be strong data in future weeks, industry experts have long said that softness could follow once the incentive - essentially free money - to buy is taken away. (Few expect the credit to be extended.) “Activity likely picked up further in March, and we expect buyers to act with even more urgency in April, although this brief surge will likely be followed by a lull in activity similar to the drop-off in late fall/winter,” noted Credit Suisse builder analyst Dan Oppenheim.

And, we’ve warned about other headwinds: Foreclosures remain a stubborn issue that drag down neighborhood values. The amount of shadow inventory, homes that haven’t made it to the market, remains anyone’s guess. Lenders remain strict, making buyers jump through hoops to secure a mortgage. This all comes as the Fed has stopped buying up mortgages, which some fear could result in higher interest rates that cut into affordability.

“I don’t expect a vigorous market resurgence or a sharp, new rise in home prices. Foreclosure inventory will continue to be doled out into the market over the next year or two, taking some vigor out of this recovery,” Mr. Larson said. “But it will be a recovery nonetheless, one warmly welcomed by battered home sellers, banks, and home builders.”

Indeed, investors in home builders look to be giddy Monday: Standard Pacific is up 6.03%, while Beazer has gained 4.38%. No major public builder is in negative territory

[eastunder]

Builder stocks rise on home-sales dataExplore related topics
SPDR S&P Homebuilders ETF Standard Pacific Corp Beazer Homes USA Inc Hovnanian Enterprises Inc Story
Quotes
Comments Screener (1) Alert Email Print ShareBy John Spence 6%4%2%0%-2%10a11a12p1p2p3pXHB SPF BZH HOV BOSTON (MarketWatch) -- Home-builder stocks rose Monday morning after the National Association of Realtors reported U.S. pending home sales jumped more than 8% in February. The SPDR S&P Homebuilders ETF /quotes/comstock/13*!xhb/quotes/nls/xhb (XHB 17.27, -0.03, -0.15%) was up 2% in recent action. Shares of Standard Pacific Corp. /quotes/comstock/13*!spf/quotes/nls/spf (SPF 4.81, +0.33, +7.37%) , Beazer Homes USA Inc. /quotes/comstock/13*!bzh/quotes/nls/bzh (BZH 4.93, +0.05, +1.03%) and Hovnanian Enterprises Inc. /quotes/comstock/13*!hov/quotes/nls/hov (HOV 4.60, -0.04, -0.86%) all gained at least 3%.

[eastunder]

Are New Home Sales About to Go Up?

http://seekingalpha.com/article/196985-are-new-home-sales-about-to-go-up?source=yahoo

[eastunder]

SPF: Wells Fargo Cuts to Underperform from Market Perform; Analyst Notes

Monday , March 22, 2010 09:26ET

Issuer: Standard Pacific Corp. (NYSE: SPF)

Analyst Firm: Wells Fargo Van Kasper & Co.

Ratings Action: DOWNGRADE

Current Rating: Underperform (from Market Perform)




Analyst Comments: Wells Fargo downgraded Standard Pacific to Underperform citing concerns over the pace of the housing recovery and the company's high leverage.

[eastunder]

LT look at SPF

[eastunder]

SPF

[eastunder]

Spec Houses Rise as Builders Bet on Buyers Before Tax Credit Ends

http://online.wsj.com/article/SB10001424052748704820904575054922945714884.html?ru=yahoo&mod=yahoo_hs


Associated Press

Home builders are ramping up speculative construction to attract last-minute home buyers who want to tap a soon-to-expire tax credit.

The strategy is risky. If the buyers don't materialize, builders could be saddled with unsold homes that will require heavy discounting to sell, hurting profits and slowing the housing recovery. New homes may also continue to lose market share to lower-priced foreclosed houses. Indeed, some economists expect an avalanche of foreclosures in the months ahead as lenders release homes they have been keeping off the market.

But that's a chance the industry is willing to take. "We know that we're going to have more people out now," says Lance Wright, co-owner of CastleRock Communities in Houston, Texas. "Buying is an emotional decision. Seeing the actual product that you're moving into will certainly make it easier."

Ken Campbell, chief executive of California-based Standard Pacific Corp., agrees. Buyers trying to beat the tax credit's expiration "will buy a house somewhere," he says. "It does make a difference if the home is ready, available to go."

Late last year, builders lost sales because they didn't have enough houses to satisfy a flurry of demand from buyers looking to take advantage of a federal tax credit for first-time buyers before they expired on Nov. 30.

Some experts believe that those credits have satisfied the urge of potential buyers to jump into the market.

"They did the job," says Christopher Thornberg, a principal at Beacon Economics, a Los Angeles-based research firm. "They stabilized the market. Now, let the program go."

But that hasn't happened. Instead, the tax credit has been extended and expanded. The current credit, which offers first-time buyers up to $8,000 and repeat purchasers up to $6,500, applies only to deals signed by April 30 and closed by June 30.

Builders expect buyers will wait until the last minute. "As we roll into March and April, more people are going to become aware of the fact that there's a deadline, and it's for real," says Rob Bowman, president of Lancaster, Pa.-based Charter Homes & Neighborhoods.

Houses typically take between four and six months to build, so the window to start construction is closing quickly. And current inventory is low. At the end of 2009, there were 234,000 homes for sale, the lowest level since April 1971, according to the National Association of Home Builders.

It's difficult to measure the total number of spec homes nationwide. But according to a survey conducted by John Burns Real Estate Consulting, based in Irvine, Calif., home builders have about three finished homes with no buyer per community. That's up slightly from 2.8 finished homes in November but much lower than the peak of six finished homes in July 2008.

"Every builder I talk to around the county is starting a spec home or two [per community] for the spring season, provided they have the cash to do it," said Jody Kahn, a John Burns vice president.

But not everyone. Pulte Homes Inc., the nation's largest builder, has 2,800 spec homes in inventory and doesn't plan to add more, even if it has to "sacrifice a few sign-ups and closings in the short term," Chief Executive Richard Dugas said in an earnings conference call Tuesday.

"We got caught with a lot of inventory at a bad time in the market, it depressed our margins dramatically, and we're not going back there, God willing," he said.

KB Home, the nation's fifth-largest builder by annual closings, has been among the most vocal proponents of not building on spec. Like all builders, the company was hurt during the housing bust, which left them with too many high-priced homes that had to be sold at a discount.

But even KB has said it will now build a limited number of spec homes in select markets and communities. It plans to build the houses about half way through, to the drywall phase, allowing enough time for buyers to personalize finishes, such as cabinet and carpet colors, and still close in time for the credit.

Charter Homes also considers itself a build-to-order builder, but it is currently building some 20 speculative homes, about 8% of this year's expected deliveries. It is selecting the most popular colors and upgrades, and every home will include a natural stone countertop on the kitchen island.

"No matter how tough times are, that's still a luxury that most people look at and say, 'That's something I really want,'" says Mr. Bowman, the company's president.

Builders say they're being careful, studying each community to determine demand and what price point and bedroom count will sell most quickly. And they're building just a few spec houses per neighborhood. Meritage Homes Corp.'s average in its 153 communities is 3.4, down from 4.3 a year ago, Brent Anderson, vice president of investor relations, says. Additional starts still require corporate review from the Scottsdale, Ariz., home office.

During the housing frenzy, builders quickly sold everything they built. But when the bubble popped, they were overwhelmed with a glut of speculative homes, as well as with cancellations. The homes were oversized with too many features that didn't match downsized buying preferences, forcing steep price cuts.

Builders responded by scaling back construction, building simpler homes and switching to a build-to-order strategy. Now, with many public and regional private builders increasing construction, inventory should climb during a "spring selling season on steroids," says Ms. Kahn.

[eastunder]

Standard Pacific swings to quarterly profit


SAN FRANCISCO (MarketWatch) -- Standard Pacific Corp. /quotes/comstock/13*!spf/quotes/nls/spf (SPF 3.99, -0.18, -4.32%) late Wednesday reported that it swung to a fourth-quarter net income of $33.6 million, or 31 cents a share, from a loss of $153.3 million, or $1.65 a share, a year earlier. Excluding asset impairment and restructuring charges and a tax benefit, the company would have earned $4 million in the latest quarter. Revenue slid to $339.8 million from $376.4 million.

[eastunder]

Standard Pacific Draws Heavy Call-Buying
By OptionMonster

(TheStreet) -- Standard Pacific (SPF Quote) is attracting upside options activity ahead of its fourth-quarter earnings report after the market closes Wednesday.

The homebuilder's shares closed the regular session Tuesday up 9.1% to $4.19 on triple their average volume after rival D.H. Horton (DHI Quote) reported strong earnings earlier in the day. Standard Pacific plunged a year ago to under $1 but has recovered slowly, finding a range of $3 to $4.50 since rebounding last July.

OptionMonster's screens lit up Tuesday with activity at the March 5 strike as traders snapped up 8,571 calls, mostly for 20 cents to 30 cents in a strong buying pattern. That was well above the open interest of 2,340 contracts and dwarfed average call volume of just 55 a day in the last month. Traders also were buying June 5 calls in large numbers, most of them for 40 cents to 55 cents.

For the March calls to turn a profit, the stock would need to gain more than 25% by expiration. The shares would need to rise more than 30% for the June calls to make money.

As one of the nation's largest homebuilders, Standard Pacific has had to ride ups and downs that have been as volatile as any sector in the economy. As the recovery has progressed, however, the short interest levels have shrunk across many names, and Standard Pacific measures under 7% short at OptionMonster's most recent check.

[eastunder]

Q4 EPS 31c vs ($1.65) Beats 1c Est

Wednesday, February 03, 2010 16:43ET

QUARTER RESULTS
Standard Pacific Corp. (SPF) reported Q4 results ended December 2009. Q4 Revenues were $339.78M; -9.73% vs yr-ago; BEATING revenue consensus by +17.72%. Q4 EPS was 31c; +118.79% vs yr-ago; BEATING earnings consensus by +3,000.00%.

Q4 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $339.78M      $376.40M      -9.73%      $288.64M     +17.72% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                 31c       ($1.65)    +118.79%            1c  +3,000.00% 
 ----------  ------------  ------------  ----------  ------------  ----------

YEAR-END RESULTS
Co. also reported Year-End results ended December 2009. FY Revenues were $1,166.40M; -24.04% vs yr-ago; BEATING revenue consensus by +5.06%. FY EPS was (6c); +99.34% vs yr-ago; BEATING earnings consensus by +82.86%.

FY RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:     $1,166.40M    $1,535.62M     -24.04%    $1,110.22M      +5.06% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                (6c)       ($9.12)     +99.34%         (35c)     +82.86% 
 ----------  ------------  ------------  ----------  ------------  ----------

[eastunder]

8K 4Q

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