CFC - ready to surge upward

1

11Blade

I'm terribly bearish on this company and stock but I suspect there will be an upward surge

It will not continue to be the ATM for shorts it has been

The put volume has been significant especially the sept 20's, short interest is higher than ever. (I smell a rat)

The puts especially had a spectacular collapse in value with the oct 20 puts actually going DOWN 0.30 cents even though the stock was down an entire dollar on friday.

I think the BoA has put a short term floor in this dog.

Mozillo may have burned the common stock holders but probably bought some vital breathing room and a capital source. to keep CFC out of the fire. BoA gets a sweetheart deal.
 
From that NY Time article (good sunday morning read with a cup of coffee)
http://www.nytimes.com/2007/08/26/business/yourmoney/26country.html

I used to have pity for the investors, who buy these loans... I was wrong.

quote

One reason these loans were so lucrative for Countrywide is that investors who bought securities backed by the mortgages were willing to pay more for loans with prepayment penalties and those whose interest rates were going to reset at higher levels. Investors ponied up because pools of subprime loans were likely to generate a larger cash flow than prime loans that carried lower fixed rates.

quote
 
Quote from atticus:

Mozilo to take retirement in six months. BAC-deal had a six month mgmt. lockup.
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Do you think the BAC deal puts a floor in on the stock?
 
I doubt the AHM surge on the day of the BAC news will be the last of the short squeezes on this stock.

That's just too easy and leaves a lot of easy money on the table.

:D
 
Quote from stock_trad3r:

this stock is sunk

look elsewhere
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But according to you, your geniusness, subprime and credit is no big deal and is way overblown.

If you believe yourself then this would be a steal down here.

I cannot find it in myself to purchase this, only waiting for a chance to sell it again. Only responding because I find it hilarious how much you contradict yourself.
 
Quote from Comanche:

But according to you, your geniusness, subprime and credit is no big deal and is way overblown.

If you believe yourself then this would be a steal down here.

I cannot find it in myself to purchase this, only waiting for a chance to sell it again. Only responding because I find it hilarious how much you contradict yourself.
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Doesn't mean you buy stocks that are in the toilet like CFC

CFC could easily drop another 10 points on god knows what
 
WASHINGTON (Dow Jones)--Examiners at the Office of Thrift Supervision recently set up a full-time presence in a conference room at the Calabasas, Calif., headquarters of Countrywide Financial Corp. (CFC), according to two people familiar with the matter.

The regulator's move came as the huge mortgage company endures a difficult summer. Countrywide announced Thursday that it was borrowing $11.5 billion under a line of credit from 40 banks after complaining about liquidity problems stemming from problems in the subprime and jumbo mortgage markets. The company's stock price is down almost 50% since June, trading at $19.59 on Monday.

The first-floor conference room has traditionally been used by bank examiners, but usually only on a part-time basis, one person familiar with the matter said. Before the OTS began examining Countrywide in March, the conference room was shared by examiners at the Federal Reserve and the Office of the Comptroller of the Currency, and the space was used roughly half the time.

Both the Fed and the OCC use "resident examiners," who are permanently assigned to specific large institutions.

Since March, OTS examiners used the conference room roughly one week out of four, the person said. But the agency recently began operating out of the office every day as concerns about the company increased.

"Although we don't have a resident examiner program per se, what we do have is a consistent examiner presence in all of our large institutions, and this is consistent with that," an OTS spokesman said.

Two Countrywide spokesmen didn't return a message seeking comment.

News about the conference room is significant because as credit market problems intensified this summer, bank regulators remained silent about any strategic oversight adjustments they were making to monitor the financial services industry.

The OTS directly supervises Countrywide Bank, FSB, a $94.7 billion federal thrift. It also oversees the parent company, Countrywide Financial Corp. The company is in the process of moving much of its loan origination business from another division, Countrywide Home Loans, to the thrift division.
 
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