Take the Money and Run!!!!!!
SPF's board just granted a few of its senior executives over $2 million in bonuses.
Was the bonuses granted at a time that management may think that the banks might not renew their revolver on March 30th as they are currently in violation?
It appears that SPF started a whole bunch of new speculative homes in Q4. Most other homebuilders are trying to reduce their speculative inventory. Why would SPF start a bunch of new specs in the current selling environment?
Was lots transfererred form land inventory to WIP to enhance the borrowing base so a little extra money could be borrowed and life extended so bonuses could be given?
Does management and the board really believe that lenders are going to front them the cash to build hundreds of millions of dollars in specs when these guys face some of the highest Joint Venture Liability of any publicly traded company and a backlog less than 1/4 of their total debt and payable liabilities?
Do you think it is an exercise of the board's fiduciary duty to offer such bonuses for a business facing the current financial constraints as SPF and future business outlook?
Did management just take the money knowing what may lie ahead? We will find out on March 30th.