I Bend to the Will of the Market

[adios]

After I posted about Countrywide (CFC) I saw in a news item that it got recommended on the Rukeyser show. I sold Monday after seeing the item. I didn't sell due to that but it was the last straw so to speak. Took a very small loss on a small position. I may enter again especially if it gets lower which it already has. I'm not the smartest guy in the world but it seems to me that there are some issues with this company that the market is skeptical about. I know about the peak in refis and originations but I think there are some issues with the transparency of it's utilization of derivatives (although not any less transparent than FNM which trades at a higher multiple) and the fact that it's reinvesting retained earnings in other business segments that may or may not pan out. CFC pays a very small dividend. CFC'ss competitors are big bank holding companies who have a lot of other business entities than mortgage banking as mortgage banking is CFC's main revenue and earnings driver. So perhaps this is also a reason why it trades at a lower multiple. If this stock didn't have a lot of analyst coverage I would be more patient but since it does have a lot of coverage I'm a lot more skeptical as to my evaluation.

[adios]

Bought back into CFC this morning for the record. It seems due for a rally FWIW.