Countrywide Rebounds Despite Big Losses

Shares of the mortgage lender shot up 32% Friday after the company issued a rosy forecast
Countrywide Chairman and Chief Executive Angelo Mozilo

It's fair to wonder whether the 32% gain in Countrywide Financial's (CFC) shares on Oct. 26 was just a dead-cat bounce or a reflection of a more enduring turnaround in investor confidence. After all, this was the first quarterly loss the nation's largest mortgage lender has recorded in 25 years and it's not as if anyone, including the company's top executives, expects deterioration in home values to end anytime soon.

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