Freddie Mac (FRE)
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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This is the end of the world as we know it.
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New investors please beware!!!! the reason stocks like these have made gains is only because of the uneducated investors( n i actually dont mean that offensively) have bought into them with the mentality " they were huge before so they will be again, n its a good time to get in". that is not true. these companies have burned through money like hellfire n have proven to have shady management. they r bubbles waiting to burst hard!!! plus for new investors a bubble is an on overly large rise in value or false rise in value that is waiting to blow n plummit!!!! dont buy them!!! there r much more intelligent buys out there!!!
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> Govt owned company with no future
> Exposed to housing sector - long way to comeback
> bankrupt company, heavy debts
> Stock investors will get nothing, once the company stabilises
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Putting this in the same category as it's twisted sister. Wouldn't touch it with a 39 and 1/2 foot pole. I hope someone gets that reference and I'm not getting old...
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It does seem a little strange giving this the red thumb, I mean considering I actually own a part of it. A rather large part of it. Thank you government, just what I always wanted!
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defaults will only increase over the next couple years
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I am basing this pick on the MSN article I just read.
http://articles.moneycentral.msn.com/Investing/CompanyFocus/4-zombie-stocks-better-off-dead.aspx
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Outstanding debt overwhelms assets despite dubious value of some assets on balance sheet. Fed debt purchases help but won't solve the problem. Could get big move up, but eventually will fall back. Reupping after initial drop.
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overdone
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Going to zero. Day traders can drive it up and down all they want but in the long run (technically the short run because it's only a few months away) this puppy will mostly likely drop to zero after the government reveals it's plan to wind down FRE and FNM in February.
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Going to zero. Don't follow the surge. Its a trap.
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I doubt Freddie Mac and Fannie Mae will even exist in a year, much less recover.
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Okay, denial time is over, and it's time for these guys to lose at least half their "value" again.
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Eventually the roulette wheel will stop and the fun will be over.
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This recent rise is only a result of a unsustainable bull market.... the fall is coming.
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Why is this still trading?
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This should fall back to 0.70 about as fast as it jumped to over 1.50. Wonderful overreaction - I'm selling the shares I spec bought at .70. I love you, Wall Street!
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Finally bought my 1st shares of Freddie Mac (FRE) shares today
WOW, I have been following this stock for a long long time and I decided NOW was the best time to buy.
I was lucky I bought my shares for $1.80
I was worried I would miss out since it has been steadily climbing since week.
My Mom has all of her retirement in FRE stocks and she was getting a little worried, but this morning I told her "Don't worry Ma, it's gonna be OK. FRE 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 today 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 this stock, 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 me 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!
So the way I am figuring.... by the time this stock soars, I will have made enough money to buy a 2010 or 2011 Hummer H3! 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).
I am just SO SO excited that I was able to get in on this deal in time........gosh.... I just don't know what to do next..... Maybe I will buy a time-share in Detroit!
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Get in this now while there is still money to be made!

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