Following yesterday's 51% rise in Countrywide (CFC), I'm a little unsure how to play this. I'll probably sell near the open, pocketing over $4000 if it opens unchanged. I'm sure the stock can move up further from here if BoA comes in with a firm bid, but I still hate the company so am probably gonna cut out.
One thing I don't get though is how Bank of America think it can buy CFC for just $4bn, or $7 a share (which is what the New York Times is reporting today)...why do they think shareholders will agree to that? Check out the 2 year chart, would you agree to a sale at $7 when you know the buyer wanted to buy above $40 just a year ago, and bought an option through a preferred stock issue at $18 just a few months ago? I think I'd squeeze them way higher. Of course, the idiots in the MSM are saying sh*t like "welcome relief for shareholders to get BoA stock in exchange for CFC stock" but that is just rubbish if you ask me, like these shareholders can't just sell their shares on the open market???
I hear it's trading down $7.40 or so in Europe. I'll be having a good look at the open price and the newsflow, but like I say, I'll probably just let it fly.