Which LUNATIC at RYL authorized a dividend?
RYL ended the year with less than $1 Billion of backlog and specs under construction. Going forward, their ability to generate revenues is limited.
RYL will likely have to spend at least $300 million dollars to build out the above and pay selling costs.
It also had over $500 million of accounts payables and accrued liabilities at the end of 2007.
For a company facing hundreds and hundreds of millions of dollars of spend requriements in 2008 for land take downs, principal and interest payments, and overhead......why would the board authorize a dividend at this juncture when sales and profits are evaporating?
You think it was the same guys that authorized hundreds of millions of dollars of share buybacks over the past few years as insiders were selling?