FloridaBuilder is CRACKED!!!!
First , I must precede this post with saying that I have the upmost respect for FloridaBuilder. I think his presence on CAPS is a huge addition and without a doubt one of its most important players.
As many of you know FB and I have a race going on whether SPF or WCI would go bankrupt first. To be fair, in the heat of the game, sometimes even the best go on FullTilt and I think FB has fallen off his horse as we approach the finish line.
FB is trying to say that SPF and HOV are in similar financial positions. From my perspective, that is like saying that I have similar looks to George Clooney. If you know my looks, and my wife's persepctive on George Clooney, nothing could be further from a fair comparison.
SPF's relative concentration of owned leveraged land in the most distressed markets is second to none in the public HB industry. SPF's debt to backlog is 6-1...HOV is not even in the same league. SPF has been cut off from its mortgage facility and now has to self fund mortgages....NOT HOV. SPF has significantly more recourse JV exposure than HOV. HOV has less debt than SPF. SPF has violated its revovler FIVE TIMES, and now senior debt (UH OH!!!)...not HOV.
FB's using debt/equity as a metrix in the current environment is a little ridiculous based on the fact that no one really knows what equity is worth today especially of most of that equity is in owned land in distressed markets selling for pennies on the dollar.
IMHO, we are nose to nose coming into the finish line.....clearly FB has the connections, the looks, and brains.....but sometimes just sheer determination can pull it out.....Do You Believe in Miracles?????