Fannie Mae (NASDAQOTCBB:FNMA)

Wednesday, April 24, 2013
“The Daily Show host Jon Stewart ripped Congress for weakening a recently approved law that subjected lawmakers to the same insider trading laws as every other American.”

Does this action by Congress have anything to do with FMCC & FNMA stock price?

Purchased 03/23/2009
Share Price .89 Cents
Target Price $10 within ten years/ $20 after fifteen years

Crazy gamble, very long-term, no expectations

Holy Moley!

If the government wanted Fannie dead, they would have killed it instead of bailing it out. After a record quarter, Fannie repaid $59 billion. If they kill it now, they will never recoup their investment. Even our greedy politicians can’t be stupid enough to eliminate that revenue stream, right???

People will continue to buy homes. They will continue to hold mortgages. Like the Mississippi River flowing into the Gulf of Mexico, mortgages will continue to flow into Fannie Mae.

This stock is soo volatile. I entered into this in a small position selling short @2.11 today and made a limit to close out this position at 2.01/share. It already hit that limit and the position was closed out for a small gain. As I write this, this stock is already back up to 2.12/share. Wow! I will close this out here on CAPs when able (after 7day minimum limitation expires for CAPs picks).

This company still has a lot of debt.

20% of the common still active. 18 cents to 1.50. making 32B per year. Was @ 70 pre-crash. Yes.

Think about the current administration. Think about the new reform. One way to go since the interest rates are down so much still.

Penny poppers

The bad news has come, gone and been digested. The housing market recovery is real and growing. Fannie is making large payments back on its debt to the Uncle. And they not only have earnings, but also very low P/E ratio. It may not be a long term star, but I believe there are some strong growth years ahead, beginning now.

The 2012 amendments to the SPSA makes it clear that there is no path to viability for Fannie and Freddie equity. Functionally, the government has 100% ownership and the traded shares are worthless.

http://fhfaoig.gov/Content/Files/WPR-2013-002_2.pdf

great

I wanted to get in at .21 but MF would not allow to pick it. This entry price may be too high, but I think there is more upside from here. I would anticipate the bailout money will be paid back in the next 12-24 months with rates near record lows. This will allow Fannie to continue dominating the market as HUD has increased fees for FHA loans. Harp 3 on the horizon should be a major boost as Fannie will be able to originate MILLIONS more which would generate BILLIONS in additional income. With default rates declining and home values bottomed out, I see a turnaround in housing and Fannie will surge as the dominant player. Freddie should also benefit, but I think Fannie will come out on top.

Sustained housing recovery, continued low interest rates, and increased employment = increase in home buyers who need FNMA and FMCC

sell CAR and buy FNMA

housing is recover

Risk/Reward is there to at least jump in and see.

The real estate market is going back up.

market cap up $ 7 Billion dollar in 4 trading days. 04/2010 last time the comon share go over $1.00. $ 5 Billion per 'year ' payment'to The US . The last 4 yr . this company be giving ' divided pay to th US Go,vt which ' own out right' 90% of the common and Preference Stock. ( $190 billion,) the banker will pay there 'share of these ' loan' buy ' now