Pinning Down Countrywide's Valuation

It is hard for individual investors sitting on the sidelines to come up with a reasonable valuation for Countrywide (CFC)). I have seen publications and websites state that the price Bank of America (BAC) is paying for CFC is $6.90. Yesterday I saw this article on fortune.com. I recommend you read it and understand what it is saying. Here is my take away from it:

If the financial climate improves between now and summer (when the deal is set to close), meaning no more major write-downs and wtfs, CFC shareholders will probably get the $7 per share. However, if we get some more major bad news, the deal could get re-priced. Lots of moving parts here, not to mention interest rates.

Comments

[ANDREWPAPADOPOULOS]

We are stuck in Athens,Greece with a bond of Countrywide(06-11),GB.... that we dont know as to whether it will pay the coupon or whether it will default.I bought it at the dealinmg room of Marfin Bank at a price of 94.53GB.P,a very good price indeed.But after all the negative news I wonder if the cooupon will be paid.Does any body out there has any idea.


ANDREW PAPADOPOULOS
Prince Peter10-14
Voula,16673
Athens,Greece