Cfc

Will we get some follow through tomorrow? The banking index broke its 200 day MA and CFC seems on the verge of break support. I know that i am the right side of this trade but it is like watching paint dry.
 
Be careful... that baby is about to hit some really strong support 30.50-31.10. Where its trading right now at 32.50 is already nice support.
 
Quote from apex82:

Be careful... that baby is about to hit some really strong support 30.50-31.10. Where its trading right now at 32.50 is already nice support.
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I agree that technicals are important because of the previous lows...but this thing is going to cut through that price like a hot knife through butter when it's ready.

TA won't hold it for long. The whole industry is turning to shit and this stock will be under $30 by month's end. :D
 
Quote from Mvic:

http://countrywide-foreclosures.blogspot.com/

Just keeps getting worse and Mozillo keeps selling.
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Yeah, Mozilo is truly scum. He's under an automated sale plan, but for the first time in the history of those plans the SEC is investigating insider trading even with them. This was specifically in reference to the mortgage lending industry. He's no doubt a focus.

The fact that he goes out pumping the company's future and not really telling of their full exposure to Alt-A is disgusting.

I figured this out this morning.

They wrote $600 billion in Alt-A last year. Alt-A foreclosure rates are about 2.5% or so. That means that they're foreclosing on about $15B more or less...from what I hear they were the go-to people for Alt-A loans that were almost a guarantee approval so their foreclosure rate on Alt-A may be even higher.

So they're probably foreclosing on an amount equating to their entire market cap. They don't hold all of those loans of course but investors will likely be coming after the company claiming fraud because I seriously doubt that CFC was candid with the risk of their packaged securities when they sold them.

It remains a great short going forward.
 
I think you are right and it is why the directors resigned. They know that CFC is going to get hit by some ugly alegations and lawsuits. Still looking for low 20's in this one.
 
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