Standard Pacific: Bargain or Trap?

Standard Pacific(SPF Quote) remains a very risky stock for investors.

The ticking time bomb with this stock lies in whether the small-cap homebuilder can start making a profit before its difficult liquidity situation pushes it to the brink of a debt recapitalization or severely dilutive offering of more stock.

Standard Pacific on Monday reported a $216 million loss in the first quarter, amounting to $3.34 a share, much worse than the $1.22 per-share loss analysts expected, according to Thomson Reuters data. ...