Monday, February 12, 2007

Never Would of Thunk It
A highly leveraged condo developer with too much exposure in Florida is in trouble. That's a surprise. This gaffe jumped out at me:

By some measures, analysts said, WCI has underperformed other builders in recent years. Its troubles have been exacerbated by its heavy exposure to Florida, where an oversupplied condo market has pushed down prices and sales. WCI expects to report a loss in the fourth quarter partly because of higher-than-expected defaults in some of its condo towers. Defaults and cancellations exceeded the total number of orders WCI received for homes in the fourth quarter. (emphasis added) Moreover, the company is more heavily leveraged than many other builders.

Without looking at a balance sheet or income statement, I'm curious what options WCI has.

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