Countrywide All is Fine!

The stock Jumps 30% after the Conference call. All of a sudden, the all the mortgage issues are gone. Of course, you keep hearing more news about CDOs and defaults on the other side.

Here is a ratings cut on $33 B CDOs
http://bloomberg.com/apps/news?pid=20601087&sid=aVazjAIdronI&refer=home

California Mortgage defaults more than double.
http://bloomberg.com/apps/news?pid=20601087&sid=aUTek4K4b_uI&refer=home

I was listening to Erin Swanson from Morningstart Investment Service this morning on Bloomberg. And she thinks the stock is undervalued because "Mortgage business is essential so there is always going to be demand and their servicing portfolio is great business..."

Can't this statement be made regardless of where the stock price is?

I still don't think the Bankruptcy Risk is over for Countrywide.