- The Risk Trade Has Not Gone Away—Yet
- Black Friday No Disaster, But Retail May Be Dead For A Bit
- Traders Focus On The Homefront
- Despite Dubai, U.S. Markets Calm
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
TRADER TALK RSS FEED
MOST SHARED
- Timeless and Time-Tested Warren Buffett Watch Predictions
- Dubai World Set to Restructure About $26 Billion of Total Debt
- Dubai Stocks Could Fall a Further 30%: Charts
- Good Sign for the Economy: 'Greed' Makes a Comeback
- Dubai Markets Open Sharply Lower for Second Day
- Should Homeowners Be Able To Walk Away From Mortgage?
- Bove: 26 Banks May Need To Raise More Capital
- Blue Nile CEO: 'We're Having the Best Cyber Monday Ever'
- Treasury Threatens Banks, Not Borrowers
- Notre Dame Fires Charlie Weis After 5 Seasons
- Treasury Threatens Banks, Not Borrowers
- We're Approaching a Market Bubble: Portfolio Manager
- Hershey Shares: What Options Are Saying
- Nov. 30: Unusual Volume Leaders
- Why Careful Shoppers Are Great for the Box Office
- Blue Nile CEO: 'We're Having the Best Cyber Monday Ever'
- Best Online Retailers to Buy Now: Internet Analyst
- ESPN The Magazine’s Body Issue: A Financial Success
- Cyber Monday: The Last Vestige of Dotcom Hype
- China Hires Foreigners to Manage Forex Reserves
- Cutting Jobless Will Take Time: White House's Summers
- GE, Vivendi Agree to Value NBCU Stake at $5.8 Billion
- Tuesday's ISM in Focus as Bulls Call for Turn in Dollar
- Arrest Imminent in Florida Ponzi Case: Report
- Cramer: Dubai Can’t Sink These 6 Dividend Stocks
- White House to Crank Up Pressure on Mortgage Industry
- Treasury Threatens Banks, Not Borrowers
- Good Sign for the Economy: 'Greed' Makes a Comeback
Trader Talk
Two bellweathers in their respective industry have come out with surprisingly bullish commentary, and both have moved the markets. Microsoft's [MSFT
Loading...
()
] commentary have propelled the perpetual tech laggard to five year highs; to move a $300 billion market cap stock by 12% pre-open is a very rare occurrence.
Countrywide [CFC
Loading...
()
] , though it took a bigger loss than expected for the same reasons many financials have taken big losses (inventory valuation adjustments, losses from bad mortgage loans, and restructuring charges), sounded a very optimistic tone. Here is the paragraph that is being quoted on the Street:
"We view the third quarter of 2007 as an earnings trough, and anticipate that the Company will be profitable in the fourth quarter and in 2008," [President David] Sambol concluded. "Over the longer term, we believe that prospects for the U.S. housing and mortgage markets, as well as for Countrywide, remain very attractive."
The company claims it has made big changes, including significantly tightened its loan program and underwriting guidelines, and perhaps most importantly claims it has accelerated the integration of their mortgage banking operations into Countrywide Bank, which they claimed has strengthened their capital position.
What's this about? Cynics on the Street feel that Countrywide had nothing to lose--one trader noted to me that the stock was trading like they were going to file for bankruptcy--they didn't, and importantly they maintained a quarterly dividend of $0.15. Call it wildly optimistic, call it buying time, calling it waiting for the Fed rate cuts to take effect--the stock is up nearly 18% pre-open. Even here, much of this is short covering rather than long buying.
Now lets see if ANY financial can hold its gain.
Questions? Comments?
POPULAR TRADER TALK POSTS
- The Risk Trade Has Not Gone Away—Yet
- Black Friday No Disaster, But Retail May Be Dead For A Bit
- Traders Focus On The Homefront
- Despite Dubai, U.S. Markets Calm
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours








