GOIH Capital Markets: Countrywide Financial (NYSE:CFC)

Countrywide Financial (NYSE:CFC) opened for trading at $21.71 and has traded as low as $19.74 on heavy volume of 35.4 million shares. The cut in the Discount Rate is only a short term fix to stave off bankruptcy. The commercial paper market was inaccessible to CFC after Thurs of last week and CFC had tapped out its credit lines of $11.5 billion unsecured to the banks that funded the LOC. We see CFC trading lower until the housing market makes a drastic turn around which we do not foresee within the next 12 months.

Lowes (NYSE:LOW) reported earning today and has traded between $28.20 and $28.90, we see Low as a potential out performer in the short term given hurricane season is upon us. We see Lowes benefiting from any building supplies purchases resulting from hurricane damage.