Ha, ha, I don't have a tv. If it'll make you feel any better, I was long from 19.76 to 20.08. Now short. Not even playing for dimes.
What you are witnessing are classic examples of trader/investor psychology and what happens when a position goes bad and the losses mount. You can learn from effy and his mistakes. You can view Effy's bitterness towards other traders, his defense of the ceo and co, his inability to admit he was very wrong regarding his trade/position, the inability to do what is necessary and stop the bleeding(cut the losses) and move on. Effy has been pumping mozilo and cfc for quite awhile. He is caught long way way back in the 30's for sure but probably worse which he isn't disclosing. He doesn't know how to protect his capital and cut his losses and he rode it down. Now he is bitter, and there are lots of other psychological trading(and personal) problems coming to light in his posts. We all tried to help you effy, we told you to cut those losses when it was melting down way back above $30 support levels....you wouldn't listen. You made a classic novice trader/investor mistake and fell in love and got a hardone for mozilo and cfc and now you are getting even more bitter on cfc threads and the LOSSES are mounting. You just kept making your snide comments at everyone from behind your keyboard defending the stock long. Personally, I think you got what you deserve for being such a jerk to everyone.
They are now out of flexibility unless someone offers them some cash. I don't know.. if you make $50,000 a year but tap a $500,000 credit line for your expenses, would you say you have a problem?
Mozilo has cashed out $129 million in options this year, which is about half of what he had cashed out the previous 22 years. That's all I need to know.
Here's a good article if there are any trial lawyers in this crowd http://www.nytimes.com/2007/08/26/business/yourmoney/26country.html?_r=1&oref=slogin
I'm buying CFC when its single digits. My friend who works for them is waiting to be laid off, only a matter of time. Wait till the scandals surface and predatory lending lawsuits come up in the news. More pain to come in this sector.
heard the same thing from an employee friend of mine...in sales... Watching this stock is like watching a car accident about to happen...just takes longer...
There are so many fucked up things going on behind the scenes. I quickly got out of my call options on that B of A deal and bought Oct. $12.50 puts. I can't wait till the illegal lending practices from certain companies surface. Lots of offices will be shut down in the next few months.
That NY Times arlicle (if partially true) coupled with a further dump in RE and loans gone bad...makes CFC MUCH worse than ENRON imo...
CFC is definitely in trouble on their own merit, but there is a good chance they will get bailed out by the fed or bank with money sitting around. Bank of america won't sit back and let them go bankrupt now that they have a $2 billion stake.