CountryWide Insiders Dumping Stock Like Its Going Out Of Style!
When the subprime mortgage collapse gathered speed two weeks ago, Eric Sieracki at Countrywide Financial (CFC – Cramer’s Take – Stockpickr – Rating) sought to calm his investors’ nerves.
“This is the pain phase of a healthy cycle,” the CFO said at an investment conference in San Francisco. “We’ve been through these kinds of cycles before and we’ve seen another day. … We’re a top-conditioned athlete.”
Doubtless that’s why his fellow executives and directors are throwing stock overboard on a heroic scale.
Insiders at Countrywide, the nation’s largest mortgage lender, have sold $314 million worth of shares in the company just since August. That’s according to regulatory filings tracked by Interactive Data Corporation.
The sales include a staggering $94.5 million by chief executive Angelo Mozilo, and $17.5 million by mortgage division chief David Sambol.
Read the rest of the article at The Street.
I think the subprime lending problems will spread to Alt-A and maybe even Prime loans. I think CFC will be affected (I don’t think it will go bankrupt) and I think the insiders feel the same way.
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March 22nd, 2007 at 10:07 am
Money,
I’ve said this before, I’ll say it again. A lot of this media coverage is overblown.
Its a great time to be a buyer in that industry. If I had more free cash, I’d buy more shares!
Best,
James
March 22nd, 2007 at 10:45 am
i really don’t think insiders would be dumping their stock if it was
undervalued.
i used to work for akamai technologies. (akam)
after it went public, execs were dumping at every price north of $50 upto
$350.
a few years ago, it was trading for 75 cents and the same execs bought
millions of shares between them. today its at $50.
July 27th, 2007 at 12:04 am
Damn, so appropriate
Bet a lot more people are wishing they hadn’t bought those shares. Looked at my shares of LOW in my portfolio and I’m glad that I lowered my allocation to 5% from 15% that I once had it at; although my position still is high before that drop in allocation. Lost about $14 bucks as of today.