Skip to comments.Countrywide Crushed Again (Lost another 16% of their stock value to Ditech)
Posted on 08/10/2007 5:53:06 AM PDT by Hydroshock
Countrywide (CFC - Cramer's Take - Stockpickr - Rating) plunged 16% in early trading a day after the struggling mortgage lender warned in a regulatory filing that mortgage market disruption could hurt the company's financial condition.
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"Since the company is highly dependent on the availability of credit to finance its operations, disruptions in the debt markets or a reduction in our credit ratings could have an adverse impact on our earnings and financial condition, particularly in the short term," Countrywide said in the risk factors section of a filing made late Thursday.
Countrywide shares have been tumbling since problems with the subprime mortgage market came to light back in February. The stock hit a 52-week high of $45 just before rivals like HSBC (HBC - Cramer's Take - Stockpickr), New Century (NEWCQ - Cramer's Take - Stockpickr) and NovaStar (NFI - Cramer's Take - Stockpickr - Rating) said they would take big losses on loans gone sour to homeowners with poor credit histories. New Century subsequently filed for Chapter 11 bankruptcy.
Countrywide dropped as low as $23 Monday amid worries about the health of the credit markets before bouncing back during a widespread market rally earlier this week.
Shares fell $4.61 early Friday to $24.05.
No, now they will INCREASE the spam and evening phone calls from India wanting to sell you a new mortgage!.............
Fed Accepts $19 Bln In 3-Day RPs
Last update: 8/10/2007 8:29:28 AM
Type of transaction: 3-Day RPs
Total accepted: $19 Bln
Total submitted: $31.2 Bln
Mortgage-Backed Collateral Operations
Total accepted: $19 Bln
Total submitted: $31.2 Bln
Stop-Out Rate: 5.15%
Weighted Average: 5.24%
High-rate submitted: 5.35%
Low-rate submitted: 4%
(Data was provided by the New York Federal Reserve Bank).
Not surprising really, just hope the government doesn’t do something stupid and bail them out.
Calm them for how long? In the next 12 months a heck of a lot of arms will reset.
We saw part of the bail out yesterday. The ECB and the Fed stepped in and flooded the market with money.
What does this mean for those of us with countrywide mortgages?
Amen to that. This is starting to look like a repeat of the S&L bailout of years ago. Those companies that jumped into the subprime market in a big way did so because the rates they could charge were higher than they could earn in the regular mortgage market. Well, with higher returns comes higher risk. The fact they're getting hit between the eyes right now with a 2x4 is the economic equivalent of thinning the herd. Not my problem...not the gov'ts problem.
The chairman and chief executive of mortgage lender Countrywide Financial Corp. exercised options for 92,000 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing Wednesday
In a Form 4 filed with the SEC, Angelo R. Mozilo reported he exercised the options for shares on Wednesday for $14.69 apiece and then sold all of them the same day for $28.74 apiece.
don’t forget the 110,000 shares from the day before and the 824,000 shares July 1st! for a net gain of $17.2 million.
I’d say that’s pretty well contained.
We’re with them, too — I’m guessing nothing, if you have a fixed-rate mortgage. People with ARMs are going to take it in the booty, though.
Probably not much. My guess is that your mortgage paper has been brokered to someone else by now and, if not, it probably will be in the near future.
Means largely nothing if you’re financed with a CFC mortgage. Keep making the payments and maybe they’ll send you a certificate or an attractive plaque!
Yet Countrywide reported as of June 30 has 187B in cash. I believe they will do ok. I like Countrywide and have a mortgage with them... very conventional one.
“UBS effective August 9 has suspended mortgage
operations. Liquidity has completely vanished in the
IT means we still have to pay our mortgages...
The game is played over and over and the music never stops.
The Fed Funds are now priced at 5.25 after adding 19 Billion. They are calming the market and can do more if they wanted. Countrywide are hinting they are in trouble so we shall see what happens. I find it odd GS and ML did not show many sub prime losses in the quarterly. Still more shakeout ahead.
Countrywide has $187B in cash... as of June 30th report. They will do ok. If your not part of the subprime... wouldn’t worry too much.
That makes a lot of noise. The other shoe (size 89 boot more realistically) hanging over the brokerage houses / market now is liquidity and valuation for their Agency portfolios.
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