Cramer: 18 Months Till Housing's Healed
The price-cutting efforts by homebuilder Toll Brothers are helping pave the way to the end of the housing slump, says Jim Cramer.

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golden sun

golden sun

Expert's pick

watching

bw

How about WCI Communities (WCI)? Does Sandell Asset Management want to own these fellows? How about SAC again? They had their chance, didn't take it. They had a $22 bid from Carl Icahn, for heavens sake.

14.1

Undervalued luxury home builder, attracting attention from Carl Icahn. He wouldn't bid on a company that he didn't think is a good buy. Thanks for the recommendation Cramer!

Growth when FLA housing picks up.

backruptcy

"The situation is dire; the company can't meet financial covenants on its bank debt and it can't survive without borrowing,'' Vicki Bryan, an analyst with Gimme Credit LLC in Friendswood, Texas, said in a report yesterday. "Without covenant relief, all of WCI's $1.9 billion debt will cascade into default and it could tumble into bankruptcy.''

Standard & Poor's maintained its credit ratings on WCI today. Standard & Poor's, whose credit rating on WCI is junk with a CCC rating, said in a statement that WCI has "acute liquidity challenges.''

However, WCI has received extensions on credit agreements and is in talks to finish a "longer-term amendment that would provide financial flexibility,'' the company said in a statement on Jan. 7.

But...

"If WCI is not successful and secured creditors foreclose on collateral, unsecured indebtedness could be accelerated,'' New York-based Standard & Poor's said in the statement.