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Countrywide Gets Credit For Not Performing Quite As Horribly As Expected

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Despite a quarterly loss of $1.2 billion, compared to a profit of $647.6 million last year, Countrywide’s shares rose the most since May 2000 on the wishful thinking that the company will be profitable in the fourth quarter. Morgan Stanley’s Kenneth Posner said that his team feels “substantially more confident in the company’s liquidity after [their] first glance at the results.” Peter Plaut, an analyst at Sanno Point Capital Management even went so far as to call the mortgage lender “a survivor,” and congratulated it for turning results that “were not as bad as market participants anticipated.” President David Sambol characterized the Q3 loss as an “earnings trough,” and predicted that fourth-quarter profits could be anywhere from 25 to 75 cents per diluted share.
Countrywide Posts Loss, Shares Advance on Forecast [Bloomberg]
Countrywide Gets Off the Mat [MarketBeat]