Global 1 Capital Markets: Will Countrywide be bought out by private equity?

Is Countrywide Financial (NYSE:CFC) in play to be bought out by private equity?

We at GOIH Capital Markets think that CFC will now be bought out by a private equity group financed by Goldman Sachs and JP Morgan or Citigroup. If the charts of GS and CFC are overlayed for the last week, you will see that these two companies' stocks have traded lockstep up and down for the past week, indicating that there was a positive correlation in the companies trading.

We think the lowering of the discount rate by the Fed, give CFC time and the financiers time to raise the money to buy CFC. We are guessing that the financial team will be lead by Goldman Sachs and a large private equity fund, the Blackstone Group, (NYSE:BX) and a hedge fund, GS Global Alpha Fund.

The transaction will save the operations of CFC, raise the shares of Blackstone Group which has been down since its IPO, and give the recent investors in GS Hedge Funds an immediate returns.


Why do you think billionaires invested in the GS Hedge Funds unless something was in the mix for an immediate profit.