Via financialskeptic.blogspot.com/:
Countrywide (CFC) according to many credible media reports has done a financing deal for $12 Billion. No details were announced. The news made the market so happy the stock popped rather nicely.
You have to read CFC's Sep 13 press release announcing Aug operational information. The $12 Billion deal is included as another line item. Given the nervousness in the market it would not have hurt to throw the market a little bit of meat on the bone. After all the lenders know what the terms are. CFC finance guys know what the terms are. But investors are not allowed to know. So if you believe in disclosure the dots are not connecting.
The press release covered how they have improved their business and are now focused on the quality end of the business. Undoubtedly this is the result of conditions imposed on them by lenders. So why not let the market know what the other conditions are. Can you make a positive spread?
I know some of the mortgage lenders are not used to documentation but if you are going to be a survivor and stay in the quality side of the business you need to communicate with the investor. Right now its just gamblers who are betting on perceptions.
$19.21 (09/15/07)
