The nation's largest mortgage lender, Countrywide Financial , is looking into some high-level panhandling in order to stay liquid. After receiving a $2 billion cash infusion from Bank of America (BAC) last month, CFC has hired Goldman Sachs to help it find more big-name investors. According to the New York Post, potential investors include J.P. Morgan (JPM) and Citigroup (C), along with several hedge funds.
Countrywide may be hoping that news of another investment from the financial sector could spur its stock higher. August 23 the date that news broke of the BAC investment saw the equity jump as high as 24.46, but that brief spike higher has since been followed by a continued slump. Most recently, the mortgage lender announced it would be forced to lay off up to 20% of its workforce in order to trim expenses.
The stock is currently facing multi-tiered overhead resistance from all of its 10-unit and 20-unit moving averages, but option traders maintain a relatively complacent stance on Countrywide. Its Schaeffer's put/call open interest ratio is 1.51, lower than 88% of other such readings taken in the past year.