$1.23
-0.02 (-1.60%)
Freddie Mac (FRE)
CAPS Rating:
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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As there seems not to be that much of a need for recapitalization, I believe this stock could be back in the high teens in a few months. In fact, the market has responded well to the Co.'s call for fresh capital.Expect a lot of gyration as any good/bad news has double digit effects on the daily PPS, but no way do I see FRE going back to even half their PPS level of last year in the next 5 years.
But, if they do need recapitalization the gov't could make the common stock disappear. The same goes for freddie. Jim Cramer has a calender death watch going on his show on Fannie/Freddie. Hope the call is for CAPS and not real money. That said, hope you are right.
i stopped reading your reply when you mentioned Jim Cramer