Friday, November 30, 2007

Buy Countrywide now!

Sunday night I had this to say about Freddie Mac:

So we know FRE took conservative marks, and that a $5 billion preferred offering should be done this week, and the stock, at 26.47 doesn't reflect this upside....So why buy FRE? Let's look to Goldman, who downgraded FRE to see why...The beauty of Goldman is how they manage clients and their own money. So Goldman downgraded FRE. Big deal. At these prices the preferred will be a home run. And six months from now we'll hear how Goldman saved Freddie. Sort of like heating your house by throwing your furniture in the fireplace. I'd vote against their downgrade. And buy the stock

The stock was at 26.47. It closed today at 35.07, a 33% move in a week. Did you miss that move? Then buy Countrywide (CFC 10.82) right now. It should trade at 14 next week.

And you'll get another 33% move in a week.