Merrill Lynch(MER) wants you out of Countrywide Financial(CFC), downgrading it from a buy to a sell. Like everybody else, they got spooked by Thornburg's(TMA) enormous drop yesterday. Countrywide shares have lost nearly half their value since February.
This morning on CNBC, Thornburg president/COOLarry Goldstone attempted to calm the waters. It may have worked for now. The stock is up about 47% thus far. Yesterday, they announced that they were delaying paying the second quarter dividend in order to preserve cash. Goldstone says that the company is not for sale.
These are stop gap measures. They are the appropriate actions, but they are bandaids on a massive head trauma. Yesterday, Goldstone said that they had no "intention" of filing for bankruptcy. What's that line about the path to Hell?
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