I am buying  CFC for 1 lot on margin. I hate to buy in margin but I think its the right timing for CFC. With net income averaging over 2 billion, its only valued at 11billion, meaning within 5 years you get your money worth. I think Buffet sees this and going to buyout CFC as well. The risk on this, which I doubt it, is that it might file bankruptcy. I don’t think the FED will allow its number one mortgage loaner to go under. So got buy some :) If its not a good buy, I would not think about buy in margin.

Current CFC  market cap : $12B;  Equity:$14B; Net income:$2B

Exit when Buffet or BAC buys it or when market cap hits $20B or up 50%. Hold through any major dip, even on bankruptacy rumors. Someone is going to pick up all of these mortgage bonds if company go under.