After falling 20% in a only a few days on no news, and this after being down 50% for the year, CFC rallied over 30% in one day once they reported their results and indicated they would be profitable for the 4th quarter and expect to earn a reasonable return on equity of 10-15% for all of 2008. The price action on both sides was driven by emotion -- first fear, then relief -- and was hardly the result of a careful analysis of Countrywide's long term business value. That, by the way, we think is in the $40's compared to its current price of about $14-15.
~ Bill Miller, Legg Mason Value Trust 3rd Quarter 2007 letter, "Bill Miller: Countrywide Financial Is Worth $40/Share," Seeking Alpha, November 4, 2008
(Countrywide was acquired by Bank of America for less than $5/share in stock in July, 2008.)