Fannie Mae (FNM)

Fundamentals may not be too happy, but I believe the worst is priced in within $3-5. I would be more surprised if there wasn't at least one more awful quarterly report, but they seem to be able to bail themselves out with each new bad piece of news.

Right now, I choose to study the technicals. If you look at a 6 month chart along with Bollingers and EMA (25,50) you will see a strong consolidation taking place. Trading range is tightening, EMA is sitting on top of each other, fast stochs are high, and Bollingers are constricting - not squeezing yet, but potentially on their way.

I just don't see how Fannie loses, especially in the longrun - federal legislature won't allow that to happen, and Fannie will once again be the cat's meow.

There are two things that can happen to FNM. One, they go broke and are put out of business. Or, two, they stay in existence and refine their business model, get back on track, get acquired, etc.
The Gov't. is not going to allow them to go broke and out of business. So the odds of the price of the stock going up are much higher than the odds of it going down. In addition, the toxic assets that have been absorbed by the Govt/taxpayers and they have a virtually endless supply of capital.

Poor mortagage decision spell trouble for this banking giant. combined with student loan refinancing changes this cold lead to severe trouble.

If the bailout is approved, this stock will gain much health and be back on track. This should be seen as a mid/long term investment.

> Govt owned company
> Exposure to housing sector - still a long way before comeback
> Heavy govt loans reqd for survival
> Absurd prices for a bankrupt cpompany
> The company future may be good, as it is a stable product in a stable housing market. But current retail investors will get nothing as it cant ride the wave without spending entire equity.

Another housing crunch for the financial sector of the market.

I've shorted this for a 92.36 point gain (right up to gov. takeover). Now reversing trend after it's backed by government and old shareholders wiped. Beginning of new chapter.

Wow I Finally bought my 1st shares of Fannie Mae (FNM) shares today!
I have been following this stock for a long long time and I decided TODAY was the best time to buy!
I was really lucky I bought my shares for $1.80....just like I did FRE last week
I was worried I had missed out since it has been steadily climbing day after day.
My Dad has all of his retirement in FNM stocks and he was getting a little worried, but this morning I told him "Don't worry Pa, it's gonna be OK. FNM is getting of conservatorship and you will start to get your dividend checks very soon."
And it can't be soon enough! Ma needs a new hip. She broke it about 10 years ago after test driving a Pontiac Aztec..... It was just too low to the ground for her...
So anyway... to make a long story short... I cashed out the rest of the remaining equity line on my house last week and bought shares.
Never mind that I am underwater on my first mortgage (damn interest only loan):
but I figure with what I make off these stocks, I will be just fine.

My broker wasn't too thrilled and he actually tried to discourage me...
I am guessing he just didn't want them to get in on a good thing!
I mean come on....he works behind a desk at a bank... and not a very good bank either (formerly WAMU) so what does he know! ABSOLUTELY NOTHING! He told me the same BS last week about FRE!!!
So the way I am figuring.... by the time this stock soars I will have made enough money to buy me a 2010 or 2011 Hummer H4! It's higher off the ground, so Ma can get in it easier (on account of her bad hip). I am just happy gas prices are back down below $4 a gallon FOR GOOD now too...Thank you Mr. President for putting a STOP to speculators in the stock market!
I am just SO proud that I was able to get in on this deal of a lifetime........gosh.... I just don't know what to do next.....Maybe buy a time-share in Detroit…..or double down on GM stock?

True test of patience here.

With the government lifting the cap on mortgages that they can buy, and reducing the reserves on hand to cope with losses, I believe this company has a lot to lose in the coming year.

Going to 0. Leveraged to the hilt

This stock is totally misunderstood in this real estate market. They handle BUSINESS LOANS. And business loans are going at a nice clip with the expanding economy.

Any interest rate cuts to help the bottom guys in the economy to help them refinance the loans instead of being losing their houses, will only help them with widening profit margins.

Plus, being a qwazi govrenment entity that is a lender of last resort, they will never go bankrupt.

There is only upside in the this pick

Can't be allowed to fail. Must be privatized again. Can't be privatized at this price. So must go up. Right?

Super lender may acquire smaller struggling lenders

When the bubble bursts you'll want to be as far away from anything related to housing/mortgages as possible.

Another one that connot go bankrupt, so can just go up in the future

Fianancials sector is in downword trend right now it may not be bad choice for long term investment and can possibly get long term capital gain but gota pick the right time to get the stock which is hard in this economic trend espicailly with finacials

At the epicenter of the imploding credit markets and loaded with defaulting unpackageable toxic waste. Just bought a put on it.

over sold, government will help them out.