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To: Travis_Bickle who wrote (90223)	9/24/2007 8:43:44 AM
From: Travis_Bickle	Respond to of 306849

Looks like the time to buy puts is shortly after the notes are issued. Appears they have something planned to prop up the stock while CS sells the borrowed shares.

To: Travis_Bickle who wrote (90223)	9/24/2007 9:09:46 AM
From: ChanceIs	Read Replies (3) \| Respond to of 306849

>>>Standard Pacific Corp......public offering....convertible senior subordinated notes due 2012.<<< It is my very painful experience that when companies start issuing massive quantities of convertible notes, they are in deep doodoo (see Calpine Corporation's demise). 1) It is stealth stock dilution - current shareholders get hosed, 2) The purchasers are usually hedge funds, who generally short the stock ostensibly to hedge the call option of the bond. I really think that it is done to drive the stock price down forcing BK so that the hedge funds ...in their right hand...end up owning the company through the debt conversion in BK....and in their left hand...hold a huge profits on their short positions. OBTW - they collect interest on the bonds all the way down. How about this...... >>>the Company intends to enter into a share lending agreement with an affiliate of Credit Suisse, pursuant to which the Company will lend shares of its common stock to such affiliate. Under the share lending agreement, the share borrower will offer and sell the borrowed shares in a registered public offering and will use the short position resulting from the sale of such shares to facilitate the establishment of hedge positions by investors in the notes to be offered.<<< 1) First, whenever a PR is too complicated to understand in one swipe of the eyeballs, you know that the corporation is in trouble. 2) Calpine at one point had to issue new shares to loan to the hedge funds buying its fresh convertible paper because there weren't enough shares available for loan in the markets so that the hedge funds could hedge said new paper. This is dilution squared. I will be increasing my SPF shorts at the open.