Countrywide Financial Loses $1.2Billion, stock up 23%

Hit by loan-loss provisions and writedowns in the third quarter, Countrywide Financial lost $1.2Bn, its first quarterly loss in 25 years.

CEO Angelo Mozilo blamed the loss on unprecedented disruptions in the mortgage market and an ongoing national housing slump.

However shares soared on promises of a profitable fourth quarter and a positive 2008, due to ongoing business restructuring at the company.

Coming back to reality

• Countrywide's market capitalisation at todays stock price is $9.20 billion.
• The stock is well off its 52 week high of $ 45.26. (52-Week Low $12.07)
• They just lost $1.2 billion.
• No signs of a recovery in the housing market anytime soon
• The USD is sliding to new lows on the USDX Index.