MDC, Reece and Mizel Liable for Overstatements and conflicts of interest.... check out 10Q filing:
* Home sales revs Y-Y would have DECLINED without acquisitions in Florida and Utah;
* MDC has made $76M in non-recoverable payments for options to build on certain properties not owned. Who received this money and what if permitting blocks these projects???
* Average selling price for homes of $311,400 (+10% Y-Y accounted for 70% of reported revenue gain, largely due to unrepeatable gains in homeprices in Florida (+ 24.1%) and Utah(+26%). Prices in high end markets in California and Virginia are now FALLING;
* Home orders fell -16% in Arizona, 10% in Colorado (home market), and Virginia (-52%) some of MDC's key markets;
* ASP for homes in quarter is $311K but MDC ASSUMES that the average sales price of homes in BACKLOG is $362.4K. Hmmn, keep that number flat at $311K and BACKLOG then is OVERSTATED by $500M and would have been up just 14% Y-Y COUNTING THE ACQUISITIONS !!! and
* What is the sub-SUBLEASE signed between MDC and CVentures.Inc signed on July 25, 2005 which is tied to Exhibit 10.1 whihc details the "arrangements" with market makers BofA, Wachovia, BNP Paribas, Comerica, SunTrust etc...
For a company with a history of conflicts of interest and material exclusions of important information, the real picture of MDC is one of significant market deterioration. SEC is now notified- let's see how deep they dig into these exhibits...
