ILongyou

Countrywide: Potential Short Squeeze in the Offing

"Disclosure: At the time of this writing, the author is LONG shares of CFC and BAC, and is LONG on CFC Calls, although positions may change at any time."

I hope no one overlooks the author's inherent interest in actually making this squeeze happen through his "article", even if the squeeze is not necessary. As justintime indicated above, all CFC stock positions (long and short) will convert to the corresponding BAC ones. Smart money is betting that the CFC books are soooo bad that either BAC will still wiggle out, or try to play games with the acquisition conditions to avoid paying the full price. *IF* the acquisition does go through as proposed, then the bad books *DO* move onto the BAC books and then BAC must take the corresponding haircut now or later (6%? anyone :)) and becomes a good short!. So smart CFC shorts will be happy to move to be the BAC shorts *IF* BAC still decides to move the CFC books to its own! In summary, the smart money bet is on the horrible CFC books... and will happily follow it to BAC if Lewis is dumb enough to keep to his original plans!

Not ignoring my own name "cfcshort" :), this article is no different than the stock pumping spam I receive all the time where the "author" is already heavily on the long side and is trying to make money through his articles/spam!! Beware!