Countryslide Mortgage Lender's Shares Plunge; Seeks 2nd Bailout

Discussion in 'Wall St. News' started by THE-BEAKER, Sep 11, 2007.

  1. I predict any day now this company will be bankrupt.

    Im short the stock.

    I think the end is nigh.

    Mozilo and his cronies will be serving time in federal prisons.

    Its business model is not workable given market conditions and requires funding way beyond its means and needs.

    Its assets which I can only establish as nothing more than a few photocopiers and worthless PC'S are zero.

    September 11, 2007 -- Countrywide Financial Corp. is putting together another multi-billion dollar bailout plan as the nation's largest home lender continues to struggle amid the global credit crunch and declines in the housing market, The Post has learned.

    Sources familiar with Countrywide's plans said the lender continues to work with Goldman Sachs and law firm Wachtell Lipton Rosen & Katz to structure another strategic investment similar to the deal Bank of America struck last month.

    It's unclear at this point who exactly is involved in the investment, but sources said a group that could include J.P. Morgan and Citigroup as well as several hedge funds has expressed interest in Countrywide.

    A final deal could be announced by the end of the month, sources said.

    Last month, Bank of America paid $2 billion for a new series of non-voting preferred stock in Countrywide, which provides an annual dividend of 7.25 percent and can be converted into common stock at $18 per share. As part of the deal, Countrywide left the door open to issue additional preferred stock or convertible preferred stock.

    "Countrywide is in desperate need of cash right now to continue funding mortgages and the credit markets are still largely closed to them," said one source familiar with the company.

    Countrywide's chief executive Angelo Mozilo, who announced plans last week to eliminate as many as 12,000 jobs, said recently that interest rate cuts by the U.S. Federal Reserve won't be enough to revive home sales and warned that the U.S. economy is headed for a recession.

    "The issues the economy is facing are worse than most people believe," Mozilo said in an interview last Friday with Bloomberg News. Mozilo has been pushing for the government to allow Fannie Mae and Freddie Mac to finance bigger home loans.

    Countrywide, which handles one of every five new U.S. mortgages, has been hurt by falling home prices and record foreclosures. The company has billions in medium-term debt coming due in about 90 days and needs to cash to continue operating.

    Countrywide's stock plunged by over 5 percent yesterday after analysts at Merrill Lynch and UBS cut their profit estimates on worries over the company's ability to make new loans. The stock, which has fallen over 150 percent this year, closed at a four-year low of $17.21 yesterday.

    Making matters worse, Alliance Capital Management, which is owned by giant French insurance company Axa SA, disclosed that it has sold about 31 million shares of Countrywide in the last month. Barclays Global Investors has also sold nearly 25 million shares.

    "We think the stock will continue to drift down, as investors lose hope of a near-term recovery," said Merrill analyst Kenneth Bruce. He estimates that the job cuts could save Countrywide roughly $1 billion a year, but that will only offset lower revenues.
  2. Let me get this straight. With great foresight, you shorted CFC when it broke $40. Added to your position once through $35, loaded the boat on a break below $30, went for the throat once through $20, considered the 5 point in 3 hour bounce off $15 merely a speedbump and have a tidy profit on some size. And only told the "world" about it after-the-fact so as to NOT jeopardize your campaign. Right?

    Until you're through $15, you're re-tracing where you've already been. Truly noteworthy.

    "Countrywide, which handles one of every five new U.S. mortgages". You said it, I didn't.

    Countrywide is in desperate need of cash right now to continue funding mortgages and the credit markets are still largely closed to them," said one source familiar with the company. Un-named sources are................just that. Credible.

    Tell can one "require" funding "way beyond" its needs?

    Predictions are for gypsy women. You have brown eyes? What about a tambourine?
  3. plodder


    imho, the end is near.

    They wouldn\'t need cash to fund mortgages, if they\'d change their business model. The traditional model still works: sell the mortgages to fannie mae, freddie mac, etc. Nooo, cfc can only work with a greedy, sell-to-wall-street model, which is obviously kaput.

  4. Hilarious:D :D :D :D

  5. Angelo Mozilo must be shorting them with you. This assclown has sold everything but 1 million shares. Nice guy for a CEO ?
  6. Sure did.

    Not a trade. A position. Preliminary stages.

    No worse off than I was 4 weeks ago.

    Got a latent asset to offset future gains (elsewhere). You see, some actually pay taxes. Yeah. It' imposing than bad fills or mousehouse brokerage commissions or the other piddleshit you dwell on.

    Had a helluva first quarter. Cushion. Affords more opportunity to embrace risk. IF there's any big money to be made, it's on the surprise side.

    Also have the potential of a liquid stock and an ax flush with inventory and the ability to gap at will. Already seen a 25% goose in 3 hours. And without the aid of nooze.

    In contrast you have NO position. Just a mouth. And maybe some cowboy boots.
  7. hahahahaah I can picture him with cowboy boots and a NJ nets bball shirt at the next nets game....say it isnt soooooooooo longhorn....

    effic...the money is going to be made on the surprise side thats for sure...but then thats a gamble
  8. What's truly hillarious is your risk/reward ratio coupled to an eggshell fragile ego. Which incidently, you've demonstrated again.

    Rather than one word, how 'bout some more pithy cause and effect notions? You know, something I can dispell. Like the news media, I too (not to be confused with two) require sumpthin' to talk about.
  9. If you want to continue posting about this "position" than share with everyone precisely how much money you have in it.

    Otherwise beat it.

  10. Nope, no position...just did a few trades in it over the last few weeks.

    I'll take the 10k I made in CFC in August and stay can keep your DOWN 50% trade in CFC and keep running your mouth.

    Nice trade inbred cornhusker. :D
    #10     Sep 11, 2007