WSJ: Countrywide Tops Worst Stock Performer List

February 27, 2008 No Comments »

scoreboard

Countrywide Financial topped the Wall Street Journal’s “Shareholder Scoreboard” as the worst performer among 1,000 other companies for both the one-year and three-year chart.

Despite being a solid bet from about 2001-2006, when the stock returned an average of 35 percent annually, the good times finally ran out for the nation’s top mortgage lender, as it lost nearly 80 percent of its value during 2007.

Shares of Countrywide ended the day up 5 cents, or 0.72%, to $6.98, well below their December 29, 2006 share price of $42.45, and at a discount to their $7.80 per-share buyout price.

Unfortunately, things changed rather abruptly, and a $1,000 investment in Countrywide at the end of 2006 would be worth about just $216 today, and $1,000 invested in 2004 would be worth $256, based on its compound average annual return rate of -78.4 percent and -36.5 percent, respectively.

So shareholders only hope now is letting it ride on Bank of America for the next umpteen years to get back in the black.

Other related companies in the top ten one-year worst performers included MBIA with a -74.1 percent return, AMBAC with -70.6 percent, WaMu with -68.2 percent, Pulte Homes with -68 percent, Lennar with -65.2 percent, and MGIC with -63.6 percent.

A slew of other mortgage and housing related stocks make the top 50 list, including names like National City, First Horizon, KB Home, Freddie Mac, and others.

It’s a mortgage crisis

(photo: tim pritlove)

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