Volume Spike Investor

Standard Pacific Corp. (NYSE: SPF) is almost 50% today on about 5-times normal volume.  In fact, its traded nearly 20,000,000 million shares.  This is one of the home builders that was on the organ transplant list and it finally got some good news today after securing a $530 million from MatlinPatterson Global Advisers.  The investment looks like more than three times the company’s market pre-announcement market cap.  The deal sounds too good to be true for current stockholders. Senior and subordinated debt in the deal both convert above the share price when the deal was set.  No wonder it’s up so much.

On almost 5-times volume and at $3.27, it is well off its lows.  Its old highs might not matter any more and many will still feel that even after a 125% run from the recent lows that a recovery has been effected.  Its 52-week trading range is $1.47 to $22.17.

It’s active enough that we’ve even seen actual trading volume in its $2.50 and $5.00 CALL option strike prices for June, September, and even farther out.

Jon Ogg
May 27, 2008