GOIH Capital Markets: Countrywide (CFC) tradingat $17.84 below $18 BAC conversion price.
CFC has broken below the $18 conversion price of the BAC covertible preferred stock investment.
We anticipated this move several weeks ago and the prediction has come to fruition. BAC can now convert their investment of $2.0 billion into common stock of CFC and take a 17-18% ownership stake.
We think that the conversion will take place as a means to cover their short position created synthetically via calls and option rather than an equity short position. In any event expect to see BAC drive the price down even lower and then acquire CFC....we are going short on CFC in the near term.