Fannie Mae (NASDAQOTCBB:FNMA)

CAPS Rating: 2 out of 5

A shareholder-owned company, which provides affordable housing capital to local communities in order to serve the U.S. housing market.

Recs

8
Player Avatar TheGarcipian (34.83) Submitted: 3/21/2008 5:57:09 AM : Underperform Start Price: $33.71 FNMA Score: +39.76

The pop that we've seen today (3/20/08) will be short-lived. The financials here are still shaky, and the stock will continue to fall for a bit longer. A lot of key financial numbers are negative according to Yahoo! Finance, including: revenue, growth rates, enterprise value, RoA and RoE. Their Current Ratio is less than 1.0, which means they have more liabilities than assets, never a good thing, and especially not in the woodshed-whipping this country's economy is headed for over the next 12-18 months.

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Member Avatar VicthebrickV (53.96) Submitted: 6/3/2008 2:04:34 PM
Recs: 0

I agree. Long Term I dislike FNM and almost all financials, but the short term volatility makes this one an interesting play.

Member Avatar kcman123 (30.05) Submitted: 6/4/2008 8:00:42 AM
Recs: 0

I disagree although the mortgage companies might take another dip but a not a huge dip in the short term due to the financials, I see a great longer term hold for FNM and FRE. Once financials bounce back mortgages will bounce back twice as hard due to the fact they've been hit so hard in the past.

Member Avatar TheGarcipian (34.83) Submitted: 6/23/2008 3:32:11 PM
Recs: 0

Agreed: over the long haul, this is a good bet. Over the short haul, it's a terrible bet. If you don't want to short this or financial stocks like it, sit on the sidelines (at least another 6-9 months) and wait for better pricing -- they're a'comin' ...

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