Freddie Mac (NASDAQOTCBB:FMCC)

CAPS Rating: 2 out of 5

A stockholder-owned corporation chartered by Congress to create a flow of funds to mortgage lenders. Purchases certain residential mortgages that it finances by issuing mortgage pass through securities and debt instruments in the capital markets.

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Player Avatar mjonesy1985 (95.03) Submitted: 2/3/2011 12:38:42 PM : Outperform Start Price: $0.70 FMCC Score: -67.89

all these top players down thumbing a stock in an uptrend.....obvioulsy there will come a time where it will sell off from profit taking.....but if thats the case then you would expect all these top players to be able to predict the high a little better.

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Member Avatar TSIF (99.96) Submitted: 2/4/2011 4:18:24 PM
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Predicting the top of anything moving up and down 20%, seemingly randomly, in a given few hours would be sheer luck. Predicting the top and accounting for the CAPS 7 day hold rule and how much it can change once it does crash is impossible. Your call looked better two hours ago. Fortunately the 7 day rule doesn't hold in real life.

Following or judging Top Players on this type of pumped equity would equate to throwing darts blind folded. Good luck.

Member Avatar mjonesy1985 (95.03) Submitted: 2/4/2011 6:30:09 PM
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well after todays close I was expecting a response to my post. Luckily I said to myself if it broke below 0.86 then I am out...I managed to book profits in real life at 0.8520 but with fool its hard with the the 7 day rule...........either way this should bounce early next week.

Member Avatar mjonesy1985 (95.03) Submitted: 2/4/2011 9:35:06 PM
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ill close my position once the stock is above $1.00

Member Avatar saintmarket (67.55) Submitted: 2/5/2011 1:04:14 PM
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Hello we are not talking about pennies stocks, we are talking about the fannies, the ones that finance the house market and the government needs to support in order to keep affordable house mortgages. Right now they are selling billions in bonds, that makes me confident in the fannies someday will rebound to at least 30.

Member Avatar TSIF (99.96) Submitted: 2/5/2011 3:16:41 PM
Recs: 0

saintmarket, these aren't your Fannies of 2006. The government has first dibbs on any profits, should there be any. The governement has dumped billions into them just to keep them alive to have a vehicle for home buyers. The government wants to cut their market share by at least 50%. Using Fannie, In 2007, they had $22 Billion in Preferred stock, Preferred get paid before common. Today it's 106 Billion. They have a market cap of 700 Million. All the institutional investors are gone. There is no money left for the commons, even if they did start making a profit. The government owns them now and some factions are suggesting shutting them down all together. Until the final call, they are penny stocks.

mjonesy1985...the price will fluctuate until the Fed releases their report. The possible recommendation to raise fees and lower the guarantee limit might send them upward a bit more. But all in all, this will fizzle. I expect to close Freddie on the way down at about $0.52. We'll see if you get your dollar first. You very well might.

Member Avatar jsbacker (91.84) Submitted: 2/8/2011 7:01:41 PM
Recs: 0

"There is no money left for the commons, even if they did start making a profit."

--dead wrong. FnF have been taking massive losses by being directed to over reserve for future losses since 2008, even when they have reserved enough to cover losses equal to 2006-2008 levels several times over. the bulk of EPS losses for the past several quarters have come from the ridiculous 10% senior preferred dividend. Freddie would have made a profit q3 2010 were it not for this dividend. let's also not forget the 80billion in profit the Fed paid the Treasury from Agency MBS in 2010 alone. if there was no value in GSEs, the big major banks would not be lobbying as hard as they can to become GSEs themselves.

"The government wants to cut their market share" --how is this a bad thing again? they are far too big right now, so back down to pre crisis levels.

"shutting them down all together"--only faction calling for this is hard-right Republicans, which is just rhetoric and does not have any support from their financial backers. will never happen.

"The government owns them now "-- the common share warrants? exactly. how else are they going to get repaid? see AIG, C.

not GM, as that means bankruptcy, and the USA will not default on Agency debt to China's 800billion dollar+ GSE bond portfolio.

Member Avatar mjonesy1985 (95.03) Submitted: 2/8/2011 7:26:08 PM
Recs: 0

no trade is based on facts....so why bother with this headache of information.......the best moves are technical moves.......and all moves are speculation. No one trades facts.

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