Shares of Countrywide Financial (NYSE: CFC) surged last week after the company reported a terrible quarter and its CEO, SEC investigation target Angelo Mozilo, engaged in the latter of "lies, damn lies, and forward looking statements."In a conference call with analysts, Mozila went on record as saying he expected the company to return to profitability by the end of the year, as the mortgage crisis subsides and it capitalizes on disruptions in the home loan market.
In an email, value investing legend Whitney Tilson pretty much sums up how I feel about this:
Countrywide up 32% on Friday -- I guess the subprime mess is over and all is well... NOT!!! How can investors be to believe a single word this company says?! I guess you really can fool some of the people all of the time... If they earn a profit in Q4, I'll eat my hat...
Exactly. You're talking about a CEO who has done nothing but say nice things about the company while he sold stock an impressive clip -- the acceleration of that clip is currently the subject of an SEC investigation.
Maybe somebody mentioned this to him. Today he admitted that, well, the housing mess probably isn't over yet. No word on if he still thinks he'll see that promised profit.
Fool Wall Street once, shame on you. Fool it twice...
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