CFC..Countrywide Funding...picked some up at $9.50, my broker friend said it was the dumbest buy he's ever heard..said they would go BK. I'm thinking just the opposite, that at this price they might be ripe for a buy out by someone like BofA. The stock hit $12.00 yesterday and dropped just a skosh today.
Any thoughts?
As you probably gathered from today's action, consider any gain in anything housing-related to be a gift. Take profits often. Personally, I'm in the bankruptcy camp, and the longer the Fed drags out its bailout, the survival of Countrywide becomes less and less likely.
Good luck to ya!
I like CFC here at what may be a double-bottom. Stop out below 8.50 so risk is 5%.
From the Businessweek year-end "Where To Invest" issue: "At a recent market value of $5.4B, the nation's No. 1 lender trades at a 60% discount to its book value - a sign the stock may be a good buy"....... "If history is any indication, the payoff could be huge. In 1990, last major downturn in the sector, financials fell 13% amid a recession. But the sector quickly rebounded the next year, returning 40%.
In at 9.01. CFC held up despite the market selloff, gaining six cents. Maybe no sellers are left. I'm out if it goes below 8.50. Otherwise I expect a retest of $12.
Lest anyone think I'm still holding this and on a ledge somewhere looking to jump >:D, I sold at 8.43 on 1/6, as per my trading plan to stop out below $8.50
this stock is not for holding overnight ....more likely for daytrading....until dust settles in the next 10months i wouldn t go long or short here....
Holy Scmoly!
Bank of America in talks to buy Countrywide: report
By Sue Chang
Last update: 2:32 p.m. EST Jan. 10, 2008Print RSS Disable Live Quotes
SAN FRANCISCO (MarketWatch) - Bank of America Corp. (BAC:bank of america corporation com
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Last: 39.31+0.57+1.47%
3:58pm 01/10/2008
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BAC 39.31, +0.57, +1.5%) is in advanced talks to buy Countrywide Financial Corp. (CFC:Countrywide Financial Corp
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Last: 7.88+2.75+53.61%
3:58pm 01/10/2008
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CFC 7.88, +2.75, +53.6%) , The Wall Street Journal reported Thursday on its Web site, citing people familiar with the situation. The newspaper said it is not clear how quickly a deal might be struck but if it happens, it is likely to close very soon. However, it also noted that talks could fall apart altogether. Shares of Countrywide Financial surged 7.42% to $5.50 a share.