T-minus ? until Countrywide goes under.. . .

NEW -> Contingent Buyer Assistance Program
Thanks Awgee. I find it incredibly ironic and satisfying that my put and short trades on Washington Mutual, Downey Savings and Countryfried this year have provided my family with the majority of the down payment for my next home. Too funny
 
<p>I just told a client, who was considering it, NOT to buy Countrywide under any circumstance. He was ruing that he hadn't bought in the 8s. He's an elderly gentleman, and I don't think wants to take the risks that this would entail.</p>

<p>I told him I thought that both Countrywide and Lennar were going to go out of business. (I suppose they could totally merge with somebody, too. But who would want'em?)</p>
 
At these prices it is hard to say who will survive. Howerver I do disagree on LEN. These guys were one of the first to break ranks nad drop prices significantly to move inventrory. They also have been very aggressive about shedding poor land options but keepin the door open down the road. I have been the numbers on LEN and think there is a point of entry somewhere here. Like the Dot com bust there will be survivors. If I were to take a LEN postion I would certinly mary it with a put for insurance.
 
<p>I don't think he is sophisticated enough to do that kind of stuff.</p>

<p>Lennar is a sleazy builder. Did a horrible job building prior to hurricane Andrew and the houses just folded up. They were thoroughly sued and settled. Later they build in my neighborhood, and had horrible practices--used unseasoned wood, trusses visibly off-kilter. Don't know how they build there, but there have been a couple of posts indicating that they don't do such a good job.</p>
 
I'm supposed to be doing a closing with Indymac. First regular closing since early August. Buyer has 20% down, good scores, everything A ok, and yet the mtg broker seems never to hear back from Indymac. Anybody know if something is going on with them?
 
<p>Here is a cute Countrywide Funny for Mozilo. <a href="http://www.minyanville.com/mvtv/?videoid=49&offset=0">http://www.minyanville.com/mvtv/?videoid=49&offset=0</a></p>

<p>Somehow I just dont see the stock recovering much with Orginations down 40-50% and Margins that just are above costs. Now they must endure State Investigations and avoid any Toxic Sludge Loans. Only thing that is going to save them is a buyer at this point. I wonder if the Tan One has made any friends in the Middle East yet ? </p>

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Liz,





is it a conforming 1st mortgage? Since it is a brokered loan, I'd almost guarantee the rate wasn't locked. Maybe the YSP changed and the broker is making less money and now wants to sub to another lender.
 
Nah, the Broker desperately wants this to close with Indymac. He's got another job now and this will be his last closing except as a salesman with a different firm.
 
Liz

Thats a new 52 week low. You need to go back to about Aug 2000 to see CFC lower. Sooner or later they will report the 4th Quarter they promised would be profitable. Then this stock will head below $ 5.00. At a certain point the SP500 will delist it as well. It is falling below the market cap minimum to stay on the Index. The entire housing index is getting slammed hard today as well. Lennar is off a $ 1.00 HOV at new 52 week low under $ 6.00. Ouch.
 
<p>Not the lowest for CFC but pretty close</p>

<p><img height="288" alt="Countrywide Financial Corp. (CFC)" width="512" border="0" src="http://chart.finance.yahoo.com/c/my/c/cfc" /></p>
 
Well CFC is now below the Market Cap of $ 5 Billion. That is the minimum for it to stay as part of the SP500 Index of stocks. Right now its $ 8.38 with a Market Cap of $4.84 Billion. Let see how many days before Standard & Poors delists

it. That is going to send it down into the $ 5.00 area for its next stop. Standard and Poors has had this dog dragging its index down all last year. I think they will move quickly to be rid of the Tan Man.
 
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