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alstry (< 20)

SPF Insiders Dumping Shares-Why?



June 13, 2008 – Comments (4)

Shortly after its CEO touted its recent offer as the foundation for SPF to grow in the future.... 

SPF filed an S-8 indicating that insiders are registering over 2.8 million shares to hopefully obtain proceeds over $9 million dollars.

Recently SPF announced a buyout deal that requires a permanent bank amendment and shareholder vote.  The deal was announced over two weeks ago.  To date there is no bank amendment and no proxy filed for shareholders to vote.

SPF recently informed convertible holders that it intended a rights offering to attach to shares on or about July 18th.  If SPF wants to make that date a proxy will have to be sent out addition there is a July 31st termination date with the investment fund.

Now CAPs most famous RE analyst who called SPF a five year call option dropped his green thumb rating.  How do you drop a green thumb on a five year investment that you challenge others to find a better deal in the space?

Insiders registering to sell shares, no bank agreement, no proxy, and dropping a five year green thumb by CAPS best housing analyst.......what in the heck is going on?

4 Comments – Post Your Own

#1) On June 13, 2008 at 7:49 AM, alstry (< 20) wrote:


June 12 (Bloomberg) -- Almost $70 million of tax-exempt bonds were sold in June 2007 to build roads and sewers for thousands of new homes planned for Elk Grove, California, once the fastest growing city in the U.S. A year later, the lots are largely vacant and the bonds lost 41 percent of their value.

The debt plummeted as construction all but ceased after the biggest developer on the Laguna Ridge project fell behind on the property taxes used to pay interest. Scattered homes sit among tracts overgrown with weeds as housing sales wilt.

``It's stopped completely,'' said Onkar Singh, 76, who lives in an adjacent development in the 129,000-person town outside Sacramento. ``Everything's vacant....''

The district that sold the bonds in June 2007 won initial approval from city commissioners in 2005, when the real estate market boomed. It wasn't until last year, after the market had already soured, that the project began.

By February, 45 percent of the tax payments that back the bonds were delinquent, according to a notice to investors. The district had to use a portion of the unspent debt proceeds to meet its March interest payment, said Rebecca Craig, the city's finance director. In April, John Reynen, a partner in Reynen & Bardis Communities, filed for bankruptcy.

Elk Grove real estate agent Tom Lichtenberg said there's little demand for new homes in the area, given the bargains that prospective buyers can get on foreclosed properties. All he shows his clients are the 400-or-so bank-owned properties for sale in the area.

``I think it's going to be a number of years before you see any builder building anything around here,'' he said.

It will be very interesting to see what kinds of risks and disclosures SPF puts into any proxy it issues....such as whether it has impaired much of its current holdings and whether it expects the amont of money invested to be sufficient to run its operations for the foreseeable future.

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#2) On June 13, 2008 at 8:20 AM, Greenspan50v (80.73) wrote:

alstry you've made the 99th percentile after so long ! congratz

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#3) On June 13, 2008 at 9:46 AM, klemenv (97.68) wrote:

Yeah, congrats on 99th percentile!

BTW, Avon CEO and IBMers are also dumping shares. 

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#4) On June 13, 2008 at 1:05 PM, jesusfreakinco (28.27) wrote:


Interesting that SPF still has shares to short at AMTD.  I added to my position this AM.  With your analysis and FBs removal of the green thumb, how can I go wrong? 

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