Countrywide’s Troubles Continue, End May be Near

by Florida's #1 Mortgage Planner on November 20, 2007

Countrywide’s stock is falling and everyone is rushing for the exits.  The stock Countrywide's Ship Still Sinking is down into the single digits now on liquidity fears.  No surprise there, huh?

So, where is Countrywide headed?  Just look at the stock chart of ACA Capital Holdings (ACA) and compare Countrywide’s stock with ACA’s.  It appears Countrywide’s stock is following ACA’s by about six weeks.  With ACA at $1.10, where do you think Countrywide will be in 6 weeks?

So, with all of the liquidity concerns, write-offs, etc., the question will be if Countrywide will survive.  Personally, I am doubtful.  I think the Bank of America infusion a while back was the beginning of B of A’s attempt to get the "good pieces" and not the leftovers.

I am sure Mozilo will step into the limelight again and say everything is going to be just fine, but he has been saying that for a long time, all the while his ship is sinking, at least is stock has been. 

Does anyone have enough bails to keep Countrywide afloat?

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