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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: pcyhuang who wrote (28315)	10/1/2007 4:34:04 PM
From: Bill Wexler	Read Replies (2) \| Respond to of 78700

CFC - agreed. Looks like my thinking was sloppy. Message 23929499

To: pcyhuang who wrote (28315)	10/11/2007 8:16:03 PM
From: Madharry	Read Replies (2) \| Respond to of 78700

What I would like to know is whether you have purchased some CFC. I think that you are wrong in your characterization of these events as being bullish. The CEO of CFC exhibits all the integrity of a captain preparing his own personal lifeboat, while acknowledging that the hole in his ship might be getting bigger. To be blunt, I think there is a case to be made that CFC management downplayed the problems facing them in order to enable the ceo to sell stock, while obtaining more financing from other sources. The stock is heading south again, the chances are excellent that the CEO will be the target of an SEC investigation, and when that happens I wonder if accounting irregularities will be far behind. Their business has now clearly changed. When I check rates in my area CFC seems higher than most so I wonder what types of credit they are now underwriting. For the first time i notice their ads on TV. My guess is now they have to compete for a different type of business and the jury is out as to how well they will succeed. anyone can write loans to be sold to the likes of fanniemae. are they the low cost provider? Anecdotally, my father in law tells me that his house in Arizona has been on the market for some time and the value has fallen $100K. However, he says it doesnt really matter to him because everytime he drops the price on his house, he just drops the price on his offer for the house he is purchasing contingent upon his house being sold. Sounds like a vicious cycle which cant be warming the hearts of soon to be undercollateralized lenders, not to mention owner investors.