WCI Communities, Inc. (NYSE:WCI) shares rose $1.17, or 5.66%, to $21.85 today after the company announced that it has hired Goldman Sachs to assist in a review of the company's operations and potential sale of the company. Jerry Starkey, President and CEO said in a press release, "During 2007, we expect our company to generate about $1 billion of free cash flow, in large part from the collection of our tower receivables, which will enable us to dramatically reduce our debt. We also are exploring the disposition of certain assets, which would further increase liquidity and reduce leverage. Once our receivables are collected and our debt is reduced, we believe our ability to enhance shareholder value through a variety of strategic alternatives, including additional stock repurchases and potentially the sale of our company, will be greatly improved."

In late January, billionaire investor Carl Icahn said he had acquired a 14.6% stake in WCI and said he wanted to engage the company in discussions on "how to unlock the inherent value of the shares." Shortly after, the company adopted a shareholder rights plan that would prevent any hostile takeovers of the company, until after February 9th, by diluting their shares. The company's excessive cash after the towers are sold, Icahn's participation in the process, and the company's willingness to explore strategic alternatives make this stock one that is definitely worth keeping an eye on! WCI is a leader in their market and should receive substantial offers in the event of a sale.

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