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.