Know When to Fold 'em: Standard Pacific

"On June 21st, hedge fund Lone Pine Capital disclosed that it sold out of its entire 5.974M-share, or 9.23% stake, in the California-based homebuilder."

The other institutional holders should check out Bubble Markets Inventory Tracking to find out what is really going on in SPF's markets.

Inventory in Phoenix metro just hit 11.9 months of sales. Riverside County is 9.7; Las Vegas is 15.3 months! San Diego County has a "healthy" 6.6 months. Orange County is 7.2.

Note that SPF was a latecomer to the Las Vegas market, and land prices were astronomical when they started buying.

Check out the foreclosure stats for these cities as well: increasing exponentially.