Some Wall Street analysts have reduced estimates because of the Internet fear. Even so, the stock is clearly selling at less than 10 times this fiscal year's earnings. That is cheap by any measure. If, as I expect, Europe provides Countrywide with a new source of growing profits, then Wall Street earnings estimate reductions are out of touch with reality. Plus, a strong dollar will push U.S. interest rates down, and then Countrywide will profit for us on two continents.
Investors look ahead.
Barring a deep recession in the United States, we will double our money from here with Countrywide Credit. Even in a recession, we should enjoy a decent profit, because the stock has been beaten down so brutally. John Dessauer was Citibank's top investment officer in Europe, stationed in Zurich from 1974 to 1978. He has been editor of Dessauer's Journal and John Dessauer's Investor's World since 1980. Visit Dessauer's Investor's World for more details.