Countrywide Results/REO

Countrywide reported a loss of $1.2 billion. But Angelo Mozilo said that the company expects to be profitable in 4th Quarter. In addition, it negotiated $18 billion in additional liquidity.

So it looks like it was not as bad as the market was expecting. And as with any stocks that are shorted so much, it 24% in early morning then came back down to 15%. I find it hard to believe that they can be profitable in 4th quater.

http://www.marketwatch.com/news/story/countrywide-financial-reports-12-billion/story.aspx?guid=%7B25A3BF10%2D7150%2D43CF%2DB497%2DAC831791064B%7D


On another note, the numbers of REO jumping from 13,000 to 196,000 was a technical glitch. I had a chance to look at one of the house locally. The house was in foreclosure in 2006 and sold in April 2007. Of course, this was one of the houses that had a broker assigned.


http://latimesblogs.latimes.com/laland/2007/10/a-huge-spike-in.html