I'm not sure if you are all aware but Countrywide, one of the nations largest mortgage lenders is looking like it is in trouble. It's stocks plunged $2.17, or around 28% on Tuesday after sinking to a 52 week low of $5.05. What is happenng to Countrywide???
There have been rumors of a Countrywide bankruptcy but they have been denied everytime the subject has been brought up. In a prepared statement (I recieved in my email):
"There is no substance to the rumor that Countrywide is planning to
file for bankruptcy, and we are not aware of any basis for the rumor
that any of the major rating agencies are contemplating negative
action relative to the Company."
In addition, Countrywide plans to host a live management discussion Tuesday January 29th at 12:00 p.m. and they will discuss fourth quarter and full year results for the year 2007.
It seems like they're in a desperate situation considering that there stock has plunged around from a 52 week high of $45.26. Thats a drop of around 80%. The stocks were shaken due to the mortgage mess thats been going on around the nation and were more shaken this week due to a report in the New York Times that said court records show the lender fabricated documents related to a bankruptcy case in Pennsylvania.
Countrywide seems to be forcasting a profit in the fourth quarter of 2008, but I personally don't see something like that happening with the credit crises, declining home sales, forclosures and climbing deliquincy rates. We will have to wait and see.
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