alstry (35.90)

ABSOLUTELY INSANE!!!!!!!!!!!!!!!!!

February 27, 2008 – Comments (0)

From SPF's S-3 Filing:

(2) For the year ended December 31, 2007, our earnings were insufficient to cover fixed charges; the amount of additional earnings needed to cover fixed charges for such period was $655.3 million.

Let's think about the above for a second.  For the year ending 2007, SPF would have needed an additional $655.3 million of earnings to cover FIXED CHARGES.

Current General HB Business Outlook for 2008 is worse.  Let's repeat that in case you missed it.....WORSE.

How does SPF think raising only $600 million will help it cover its FIXED COSTS.  Its backlog is only $442 million, and SPF's has to spend additonal millions to deliver that backlog.

That said, who in their right mind would loan a company a dime, let alone hundreds of millions, that can't cover its FIXED COSTS in the foreseeable future?

These guys file an S-3 stating they intend to raise $600  million?  A board member buys shares on the open market just before this nonsense, just like he did before the last dilutive convertible.  No wonder these Jokers are being sued in a class action lawsuit alleging false guidance and misrepresentation.

 To top it off, the Wall Street Analysts upgrade the equity of a company that can't even meet its FIXED costs by hundreds of millions of dollars and the current outlook is even more negative.

If that ain't the world gone insane, I don't know what would be in the investment world.