This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mozilo Cashed Out at Top of Market

When you're considering whether to buy shares of a company, beware if the CEO is selling. I don't care what reason the CEO gives for the selling in public; they always have an excuse, but executives rarely sell a share because they think it's going higher.

Case in point: Angelo Mozilo's Countrywide Financial (CFC).

And if you're an investor in Countrywide, one figure must be sticking in your throat right now.

Eighteen bucks.

That was the kicker in last week's $2 billion deal with Ken Lewis' Bank of America (BAC).

Not only did Lewis negotiate a sweet 7.5% interest rate on the loan he made to Countrywide, but he also got the right to convert the loan into new Countrywide stock, at just $18 a share, if he wants to.

Eighteen bucks.

Trust Ken Lewis to get the sweet end of the deal.

In recent years, Mozilo has been selling ordinary investors his own shares. Millions of them. And they didn't get anything like these terms.

How much did they pay?

In total, company filings show Mozilo has sold a staggering $425 million worth of Countrywide stock to outsiders over the past three years.

Average price: $36.50 a share.


Yes, it's better to be Ken Lewis.

I hate to imagine how those investors feel now. Countrywide stock fell Tuesday to just $19.41 in the deepening gloom about the housing market.

Everybody likes wealth creation, and everyone celebrates a self-made man. Mozilo started Countrywide and built it up over many decades into an industry giant.

In a statement, Countrywide spokesman Rick Simon said Mozilo still owns about 1.5% of the company. (That should be worth around $170 million at current prices.) As for the $425 million in stock sales, Simon observed that Mozilo, who is 68, has been diversifying his portfolio as he nears retirement.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs