Too Big to Fail?

If you go back to last week’s charts you will see that Countrywide Financial (CFC-NYSE) closed higher than its open each day. You will have to come to your own conclusions there, but it is noteworthy. Also, CEO Angelo Mozilo, who has sold as much stock as any CEO in corporate America the past few years, has already cashed in about $7 million of stock this month. Granted it might have been pre-planned, but it has to be unnerving to shareholders all the same.

Finally, I talked to someone this weekend that mentioned that Countrywide has opened nearly three dozen branches around the NYC area in the past few months. They have a few more to open, which is amazing given how much capacity is coming out of the system.

Maybe it is smart from a counter cyclical standpoint, but Angelo is starting to give me the shakes. Could he take us all down? What does he care, he will walk with his stash of cash.

Countrywide is almost to big to fail. I would also not be surprised if Hank Paulson told Mozilo to stay off of CNBC for a while. I have been watching the brokers closely, but this stock will get my undivided attention for a few weeks. I sure hope Bill Miller is right about this one.

For everybody’s sake.
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. no position CFC

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