Merrill put a "sell" on Countrywide Financial (CFC) which looked late in the game. For shareholders who got into the stock earlier in the year, the rating could have come much earlier. For those who bought yesterday and sold this morning, it was not.
CFC dropped 13% today on over 117 million shares and was down another 2.3% after hours.
As MarketWatch wrote: The ratings change came as a stark contrast to Merrill analyst Kenneth Bruce’s earlier comments. In an Aug. 10 note, the analyst said that news reports "appear to sensationalize" the company’s liquidity problems.
But, this AM, Bruce said sell, and at the end of the day the shares were way down.
Douglas A. McIntyre