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Top 10 Reasons the Market is Down

By Faisal Laljee

The Dow plunged almost 700 points today, and is down 17% just this week and 24% over the last 30 days. The drop is not just the result of the financial crisis that plaques the market today. Additional reasons are: A weakening world economy. A deeper recession than the government had formerly suggested. Bernanke... »

E-Trade Financial Stock Carries High Risk-Reward

By Faisal Laljee

E-Trade Financial (ETFC) has had its share of problems. A few years back, E-Trade was the biggest competitor to TD Ameritrade and the stock traded together with the brokerage stocks. Yet, since the mortgage headlines began to hit the wires last year, the stock has dropped from $23 to $3 today. In fact, the... »

Countrywide and Bank of America – What is the true value of the deal?

By Faisal Laljee

It is hard from individual investors sitting on the sidelines to come up with a resonable valuation. I have seen publications and websites state that the price BAC is paying for CFC is $6.90. Today I saw this article on fortune.com titled Betting against the BoA – Countrywide deal. I recommend you read it... »

Time to Cover Countrywide

By Faisal Laljee

There is just so much beating a stock can take. Yes Countrywide (CFC) is a mess and has been for the last 12 months. The stock has lost most of its value and is down from $45 last February to less than $6 at one point today. The company’s market cap has shriveled down... »

How Does the US Housing Impact World Economy?

By Faisal Laljee

Sounds far fetched? Let me see if I can logically map this out. The 2-year and 3-year Adjustable Rate Mortgages (ARM’s) that were originated from 2003 to 2006, will reset all the way to 2009. People that get hit with the increase in monthly mortgage dues will have to cut down on non-staple goods... »

The Countrywide Conundrum

By Faisal Laljee

On one hand, the credit crunch and mortgage industry woes will hurt Countrywide. On the other hand, they will be the only large player still standing when the smoke clears. So how does one play the stock? I made money on the long side, and then on the short side. At this point, it... »

Not a Subprime Issue

By Faisal Laljee

I have been saying now for a while now that this mortgage problem is not a subprime problem. Back in March, I penned a post “ Should Regulators Have Their Way With Mortgage Lenders?“. I am glad that finally, Cramer has come around to saying the exact same thing. The Bear Stearns $900 million... »

Headlines will be Headlines – Cheer Up!

By Faisal Laljee

The market is down over 500 points in two days and suddenly all the market commentators are cautious and advising getting defensive. I think it’s a little late for that now. At Dow 14,000 and even 13,000, it was certainly prudent to get defensive – now it’s just stating the obvious. And while I... »

Countrywide’s Woes Worse Than Expected

By Faisal Laljee

I was quite surprised to hear so much bad news out of Countrywide (CFC). I had written positively about them back in April and enjoyed a brief double digit gain on my recommendation over the last couple of months, but with the comments out of Countrywide this week, I believe the worst is yet... »

Subprime Mortgage Mess Spilling Over?

By Faisal Laljee

The post below is by a guest author and a friend of this blog. Robert J Bernabe is a student of the US mortgage market and has been involved in the Industry for over 25 years at various levels, including operating several very large retail mortgage originators. There are few people out there who... »

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