I shorted Countrywide (CFC). They are a sleazy subprime lender, one of the biggest promoters of toxic option ARMs, and highly vulnerable if the housing bubble really bursts.
Pros to shorting:
- missing earnings estimates, analysts revising numbers downward
- president and CEO are cashing out like madmen
- pushers of option ARMs, AKA Darwinian euthanasia. Darwinian euthanasia is fine, except when Dr. Kevorkian is stuck by the deceased with an underwater house.
- they take unsecured promissory notes from broke and unemployed 24-year-olds to avoid foreclosing on bad loans
- still near an all-time high despite evidence that the housing bubble is beginning to burst
Cons to shorting:
- relatively cheap at 9x or 10x earnings
- Helicopter Ben and the Easy Fed will bail these bastards out
If snotty bullet points don't pass for analysis where you live, too bad. They do here.
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Body Count goes to Vegas! Ernest Scherer III was a Vegas loser who fancied himself a professional poker player. Doesn't that photo tell ... -
UPDATE: Edited to remove the guy's name. I hope nobody harasses him or his employer. He was good-natured and his sign was innocuous a...
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