Zacks Analyst Interview Highlights: Dollar Financial, Comerica, National City and Countrywide Financial

Business Wire, Dec 11, 2007

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Neena Mishra, who discusses Dollar Financial Corporation (Nasdaq: DLLR), Comerica (NYSE: CMA), National City (NYSE: NCC) and Countrywide Financial (NYSE: CFC).

A synopsis of today's Analyst Interview is presented below. The full article can be read at www.zacks.com.

Do you have any top Buy recommendations for us today? Any Strong Sells investors should steer clear of?

Some of the valuations look quite attractive after the sell-off; however, we feel that investors should stay away from the banks and other financial companies having any mortgage/housing/real estate exposure till there is greater visibility on the housing issues. Some of the companies, which are otherwise in great shape, are also feeling the pressure due to the current negative sentiment for the group as a whole.

We are moderately bullish on Dollar Financial Corporation (Nasdaq: DLLR) which is a specialty finance company offering consumer financial products and services and deriving significant share of its earnings from outside of U.S.

Talking about the Sells, we have many in the group at present. We have strong concerns for Comerica (NYSE: CMA) due to its commercial real estate portfolio and its exposure to the California and Michigan markets, although the bank has no subprime exposure. Another such name is National City (NYSE: NCC), due to its heavy exposure to mortgage, home equity and construction lending. While the mortgage insurers like PMI may benefit marginally from the new mortgage plan, the magnitude of expected losses justifies our bearish stand on the stock.

We remain concerned with Countrywide Financial (NYSE: CFC) and have been advising investors for the last few months to view any upside in the share price as an opportunity to sell (the stock has seen some temporary, modest upside at times). While we think that the company is still in serious financial trouble, the only reason for our Hold rating at the current valuation is our view that it is too big and important to the economy that regulators would not let it fail.

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