1923 Exeter Place
Pasadena, CA 92682
January 31, 2002
Dr. Lee Cerling
Director of Research
1884 Financial Avenue
Los Angeles, CA 90089
Dear Dr. Cerling:
Countrywide Credit Industries, Inc. is poised for excellent long-term growth. The mortgage financing industry has been immune to the current recession, and all indicators point to more growth in the future. Countrywide’s solid fundamentals will help propel its stock price to double-digit annual percentage gains.
Countrywide is significantly undervalued at $40 per share. A large number of the company’s important financial ratios are much stronger than the industry averages. Countrywide also presents minimal risk because it is a large, established, well-known and highly regarded company that has significant market clout.
Extremely low mortgage and home equity interest rates have been the catalysts for one of the most impressive waves of mortgage refinancing, initiating of second mortgages, and home purchases. Concerns that rates will rise significantly within the next several years are few, so demand for Countrywide’s services should remain at high levels.
Past performance is often the best indicator of future gain – in the last ten years, Countrywide’s stock has returned over 150% (“Detailed” 1). Solid financials and a customer-focused corporate philosophy should help Countrywide outpace even its strongest competitors.
I’m sure you’ll agree the Countrywide Credit Industries is a stock that our clients can’t pass up. Should you have any questions, please feel free to contact me at the above phone number, e-mail, or addresses.