Stockpickr Lists: Countrywide Seeks Liquidity

Editor's Note: In this feature from Stockpickr, we highlight lists of stocks that have been upgraded by analysts, are experiencing activist situations or some other market moving events.

Rumors of the Day: As traders grew more concerned that Countrywide Financial(CFC Quote) could be on the brink of bankruptcy, the mortgage lender said it is drawing on an $11.5 billion credit facility. Demand for mortgage-backed securities has dried up, and liquidity has evaporated, the company said. In addition, the company has accelerated its plans to migrate its mortgage production operations into Countrywide Bank, FSB. Shares were plummeting $4.56 to $16.73.

Today's Hot List: Fifth Third Bancorp(FITB Quote) is acquiring Charlotte, N.C.-based First Charter(FCTR Quote) for $1.09 billion in cash and stock. The combination provides Fifth Third Bank an entrance into the Charlotte metropolitan market and adds to its small presence in Georgia, which it would acquire with its pending R-G Crown Bank transaction announced in May. Fifth Third shares were down $1.54 to $35.84. First Charter gained $7.65 to $27.90.

Analyst Downgrades: Merrill Lynch downgraded Eaton Vance(EV Quote) to sell from neutral. The firm expects new flow to slow down, and its products are weighted toward bank loans. The stock fell 21 cents to $13.09.

Analyst Upgrades: Bear Stearns upgraded Career Education(CECO Quote) to outperform from peer perform. The stock, which is down 25% from recent highs, has a $35 price target. The second quarter likely marked the bottom in enrollment levels, Bear Stearns said. Shares dipped 2 cents to $26.58.

CIBC upgraded Commercial Metals(CMC Quote) to outperform from sector perform. The stock, which has a $35 price target, is down 25% since mid-July and offers an attractive defensive play, CIBC said. The stock dropped $1.96 to $25.04.

Latest Activist Situations: In a regulatory filing, majority owner Paul Allen indicated he may pursue a restructuring or a move to go private for Charter Communications(CHTR Quote). The stock was dropping 31 cents to $2.26.