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Goodbye and good night ! WCI



The shares of WCI rebounded back to $3.1 from this year low of $1.35 so what has caused the stock to rebound ?

  • WCI expects massive loss of 460 million !
  • WCI indicated that it may not file its 10-K on schedule.
  • There's not much hope it can service what's likely to be more than $1.75 billion in debt at year-end.
  • WCI was in violation of the interest coverage covenant governing its bank debt as of the end of the third quarter.
  • WCI derives a substantial amount of its revenue from Florida
  • Recently proposed accounting standards will negate WCI's ability to use the percentage-of-completion method for its tower business revenue recognition.
  • Management has recently reduced WCI's operating cash-flow forecast from $1 billion for all of 2007 to $210 million
By pelcmarek at 2008-03-06 20:17 | Stocks | pelcmarek's blog


Developer seeks bankruptcy protection


Another high-profile condominium developer in Tampa's Channelside District is seeking protection from creditors.
By pelcmarek at Fri, 2008-03-07 14:57 | login or register to post comments

Add TMA to the

Add TMA to the list....

http://finance.yahoo.com/q?s=TMA

- Vooch
By Vooch at Fri, 2008-03-07 15:13 | login or register to post comments

Carlyle,KKR & Peloton


Carlyle Capital corporation said it failed to meet margin calls on loans backing part of its $21.7 billion portfolio of highly rated securities  issued by U.S housing agencies FNM and FRE.

The Carlyle news comes only a week after margin calls triggered the implosion of London hedge fund Peloton Partners which could leave funds 14 lenders including Morgan Stanley and UBS as much as $17 billion in problematic mortgage securities.

KKR has its rating cut by S&P.KKR sold 5 billion of residential mortgages at a loss.
By pelcmarek at Fri, 2008-03-07 19:12 | login or register to post comments

WCI's Grim Outlook


WCI Communities Inc. has disclosed what many analysts have been saying for months: The housing slump and credit crunch have raised substantial doubt about the condo developer's ability to "continue as a going concern."


WCI included the statement in its annual report released Monday partly because the company has $125 million of convertible notes whose holders can elect to be repaid in August. "Our cash position is not likely to allow the payment of those converts," Chief Executive Jerry Starkey said in a conference call.


But the larger question is whether this company with $1.9 billion in debt and desperate for cash can outlast the condo meltdown in Florida, where WCI constructed many of its buildings. Investors appear to be betting that WCI, whose chairman is billionaire Carl Icahn, can survive.

By pelcmarek at Wed, 2008-03-19 06:32 | login or register to post comments

Goodbye and good night ! WCI

WCI stock has lost more than 88 percent of its value since May last year.

Home builder WCI Communities Inc  faces the risk of bankruptcy due to its deteriorating liquidity position, potential revaluations of deferred tax assets and likely losses through 2009, Raymond James said .

There is little value left for equity holders given WCI's outstanding debt of $1.7 billion, analyst Paul Puryear said.

WCI's liquidity position continues to deteriorate and stood at only $110 million in March, he noted.

"Moreover... lenders are completing appraisals of assets secured under the borrowing base, and management (WCI) acknowledged many of those new property values are likely to come back below current book value," Puryear said.


The difference in values would reduce borrowing base availability further and could trigger mandatory prepayments, he added in a note to clients.


On Wednesday, WCI posted a wider-than-expected loss for the first quarter and said aggregate number of net new orders fell 22.8 percent as contract cancellations and defaults at closing continued at higher than long-term historical rates.


The ratio of net debt to net capitalization increased to 83.3 percent from 65.5 percent a year ago, WCI said.

Today price of WCI is 2.4


PS:Timminco (TIM.TO) is the next !



By pelcmarek at Thu, 2008-05-08 16:34 | login or register to post comments

WCI Final Goodbye !!!


Troubled Florida builder WCI files for bankruptcy !!!!

This is the checkmate for stockholders and final victory for short sellers !!!

I'm just curious how long it will take Timminco before it will follow WCI

By pelcmarek at Mon, 2008-08-04 09:03 | login or register to post comments