1) Angelo has dumped his shares, selling the last load of 'em last week. Now he can finally tell the world what he knew all along
2) They didn't pre-announce to lower expectations (so that Angelo could dump all his shares of course). All the other financials pre-announced, except for CFC. Gee, ya wonder why?
3) They are a public company that you would think has auditors
4) Angelo will likely go to jail for his insider stock trades, but you'd think he'd want to submit correct financial statements to avoid Sarbanes-Oxley jail time too
5) Subprime cancer has now spread to option ARMs and prime mortgages too, just as we predicted. This news will REALLY freak the market out
The only thing that'll keep CFC from shocking the market on Friday is convincing their auditors that they DON'T have to "mark to market" and that "mark to fantasy" is GAAP in the REIC world. But again, with Angelo having sold off his shares as of last week, he should feel free to come clean Friday. REALLY clean.
I'm no longer short CFC, since my October put options closed Friday (god bless 'em). But for those of you that still are, enjoy. You're probably enjoying your FED, IMB and WM puts too eh?
Countryfried is toast. And Angelo needs a pair of cuffs. And note - don't adjust your screen. Dude really is that color.
Staring into Countrywide's abyss
Giant mortgage lender's third-quarter results will offer a view into the depth of the problems facing lenders, housing industry and the economy as a whole.
"For a while, this is going to be a bumpy ride," said Stuart Plesser, an equity analyst for Standard & Poor's. "The expenses they have to pare down are huge, and getting it right will take a quarter or two. They've been operating in just-survival mode. All these margins are going to be way out of whack."
Subprime mortgages aren't the only challenge facing Countrywide Financial Corp., the nation's biggest home-mortgage lender. Some loans classified as prime when they were originated are now going bad at a rapid pace.