It seems like todays rise in price was "fake" and does not reflect the true sentiment of the market, it could be a good time to go short after the huge gain they had today. Opinions?
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CFC (CountryWide Financial) Good time to go short?
- Thread starter M3racer2k1
- Start date
Had a huge short position I put in a couple days ago for 12k. Lost like 800 dollars today. But good news I saw on yahoo finance tonight on cfc that countrywide exec said that 60% of all cfc's arms would default if the teaser rate would not be taken into account.
9% of countrywide's portfolio is subprime. Hopefully this stock goes down like $5 and I can take my profit.
9% of countrywide's portfolio is subprime. Hopefully this stock goes down like $5 and I can take my profit.
Well it seems as if the people within the company feel confident about their future prospects, but then again what the hell else are they supposed to say, I don't take it for much.
Here are the only excerpts I've been able to find:
"Countrywide CFO sees 'dark time' for other subprime lenders"
(12:58 PM ET) NEW YORK (MarketWatch) -- Countrywide FinancialCFO Eric P. Sieracki said some subprime lenders will go out of business in the current downdraft in the sector, but said his company will emerge. "If you're a monoline subprime lender, this is a dark time for you," Sieracki said in his presentation at the Raymond James 28th Annual Investors Conference. He said Countrywide's subprime business represents only 9% of loans, but pointed out that 30-day deliquencies for sub-prime have risen to nearly 19% from 12%-14%. He said it's too early to tell if woes in the subprime business will spill over to other products, with fresh data on deliquencies coming after March 31. More than 80% of Countrywide's subprime loans are rated A-minus or better, he said. "This is the pain phase of a healthy cycle," he said. "We're a top conditioned athlete and the future value of this pain is greater...we need to see supply leave the system. We've been through these kinds of cycles before and we've seen another day."
Countrywide plans to 'dominate' real estate finance
(11:51 AM ET) NEW YORK (MarketWatch) -- Countrywide Financial CFO Eric P. Sieracki said the company plans to grow by dominating real estate finance, enhancing earnings stability and diversifying its business mix. Speaking at the 28th annual Institutional Investors Conference, Sieracki said the company's origination market share growth has outpaced the industry but said Countrywide "is not a one-trick pony." Only 9% of the company's fundings come from subprime, he said. He said there may be regional opportunities to grow the company, but didn't set plans for any major acquisitions.
Here are the only excerpts I've been able to find:
"Countrywide CFO sees 'dark time' for other subprime lenders"
(12:58 PM ET) NEW YORK (MarketWatch) -- Countrywide FinancialCFO Eric P. Sieracki said some subprime lenders will go out of business in the current downdraft in the sector, but said his company will emerge. "If you're a monoline subprime lender, this is a dark time for you," Sieracki said in his presentation at the Raymond James 28th Annual Investors Conference. He said Countrywide's subprime business represents only 9% of loans, but pointed out that 30-day deliquencies for sub-prime have risen to nearly 19% from 12%-14%. He said it's too early to tell if woes in the subprime business will spill over to other products, with fresh data on deliquencies coming after March 31. More than 80% of Countrywide's subprime loans are rated A-minus or better, he said. "This is the pain phase of a healthy cycle," he said. "We're a top conditioned athlete and the future value of this pain is greater...we need to see supply leave the system. We've been through these kinds of cycles before and we've seen another day."
Countrywide plans to 'dominate' real estate finance
(11:51 AM ET) NEW YORK (MarketWatch) -- Countrywide Financial CFO Eric P. Sieracki said the company plans to grow by dominating real estate finance, enhancing earnings stability and diversifying its business mix. Speaking at the 28th annual Institutional Investors Conference, Sieracki said the company's origination market share growth has outpaced the industry but said Countrywide "is not a one-trick pony." Only 9% of the company's fundings come from subprime, he said. He said there may be regional opportunities to grow the company, but didn't set plans for any major acquisitions.
Id say get short at yesterdays high or possibly around that 37.40 area. Place your stop about .25 or so above that and go for retest of the lows and hold some for new lows into the blue support zones that I have drawn.
You would be risking about .25 to make $3 or more.
If stopped out wait on the sidelines until the $40 area. Just know that you have missed most of the drop and you are late to the party. A corrective rally is sooner rather then later.
You would be risking about .25 to make $3 or more.
If stopped out wait on the sidelines until the $40 area. Just know that you have missed most of the drop and you are late to the party. A corrective rally is sooner rather then later.
Attachments
Apex, great post. We were thinking along the same lines.
I'll buy at 30.00