This Day On The Street
Continue to site
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

The Five Dumbest Things on Wall Street This Week

1. Countrywide Crock

Countrywide (CFC) CEO Angelo Mozilo is feeling the heat.

Richard Moore, North Carolina's press-shy treasurer, asked the Securities and Exchange Commission to investigate Mozilo's insider selling spree . The CEO has netted $100 million this year alone dumping his Countrywide stock. Meanwhile, shareholders have seen the value of their investment tumble by $14 billion since February.

Moore is asking the SEC to look into changes Mozilo made to his pre-arranged stock-sale plan over the past year. Moore, who runs a pension fund that owns $9 million in Countrywide stock, says the changes conveniently enabled Mozilo to sell more stock just before news in the mortgage industry turned sour.

"As one of many investors who have felt the painful losses in Countrywide stock, I am outraged at his manipulation of the system and this abuse of shareholders," Moore wrote in the Oct. 8 letter. "The timing of these sales and the changes to the trading plans raise serious questions about whether this is mere coincidence."

Moore has tried raising serious questions with Countrywide before, to no avail. He said he sent the company's board a letter last month asking it to investigate Countrywide's internal executive compensation policies, among other matters. He says he received a "polite response" indicating the board saw no reason to act.

In contrast, Mozilo remains a man of action. Countrywide said last Friday that even with all the stock Mozilo sold over the last year, he still has some options he hasn't cashed in. He'll take care of that, Countrywide said, by selling stock at prices below the floor specified in the preset selling plan. Mozilo conceded that the stock "is currently under pressure," but indicated that other considerations loom larger.

"The upcoming sales are driven by rules within the 10b5-1 Plan that were established long ago," Mozilo said Friday, "and should in no way be viewed as any indication of my future outlook for Countrywide."

Here's betting he'll always view Countrywide as his personal piggybank.

Dumb-o-Meter score: 93. "Countrywide's leadership stuffed the company's pockets, as well as their own, with short-term profits," Moore wrote last month, "but long-term value was decimated."
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JOE $16.54 -0.60%
HRB $20.03 -0.89%
S $3.44 -0.86%
T $38.74 -0.36%
VZ $50.84 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs