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The bulls defended the $2.30 zone of support very well. As the news makes its way around and gets digested, we may see another leg up tomorrow. Would be awesome.
Watts is not stupid. He kept getting so close to saying it need to be released but he can't say it right now. You can see he was visibly trying to avoid saying what he shouldn't be saying right at this moment but know it is in the works.
What a BID stack going into closing! Yowsers!
All FNMA and FMCC securities are in the green except FMCCH.
Watts kept mentioning big developments in December and the first Q of 2015.
Bulls seem to be defending that $2.30 - $2.32 support zone very well. Let's see if we can hold it through close.
$2.58 printed
$2.54 Printed.
For anyone who did not watch the Senate hearing, this is the match that lit the fire under FnF:
"Everyone agrees that conservatorship cannot continue forever," says Senator Tim Johnson in prepared remarks for a Senate Banking Committee hearing on the GSEs. "If Congress cannot agree on a smooth, more certain path forward, I urge you, (FHFA) Director Watt, to engage the Treasury Department in talks to end the conservatorship.”
Finally glad to see positive news articles hitting the major outlets surrounding FnF.
After today's testimony from Watt, the lawsuits in the courts and various investors uniting to uncover the corruption surrounding the Fannie and Freddie takeover, this song title is appropriate for how the government lawyers in these cases and the politicians who are trying to hide their dirt may be feeling now:
The markets obviously were watching this hearing closely. This stock is on the move.
Great hearing! I believe we received a good amount of information that points towards a positive outcome for shareholders.
Most of the preferred shares are green as of this posting.
Senator Warren is going in but Mel is holding his ground pretty good. Good exchange here.
Mel Watts is kicking butt pretty good.
Actually, it is not the MMs. ClayTrader dispelled that myth a long time ago. You are just seeing the markets move based on how people collectively feel about the security at the time.
The MMs are just our representatives in the market. They are not holding the stock down.
I totally understand. I have $27K sitting in here and to see it down to $23K hurts like hell but I am focusing on the bigger picture as I see it developing.
Resolution is coming soon, Risky. Try to hang in there as long as you can.
Exactly. If anyone watches Level 2 like a hawk and don't have their emotions in check, it is going to drive them crazy with the up and down price action.
This is not a shoot-up quick stock because of so much that is out there. However, all is coming together for that day when it will shoot up. It requires patience.
The process takes time. Patience is required. Grab a bottle of Pepto Bismal if it puts your stomach in knots.
Seriously, patience is required for this beast. The market is digesting news from both sides of the argument, some of which are false stories. So, once all of that makes its way through the market and the final resolution comes out, the stock price will reflect it.
Until then, its bipolar.
The way the market digests news is odd at times. However, the meeting is still going on and according to Watts, more "details" are coming in December. I am sitting tight to ride this puppy out.
Level 2 seems to be liking what Watts is saying right now.
Watts speaking now.
Crapo just said some BS about not directing profits to anyone other than the taxpayers.
Holy Crap! Sen Johnson just said for Watt to engage the Treasury in ending the conservatorship.
I don't know if that is a sign of things to come but when I woke up this morning, my television was on CNBC as it didn't automatically turn off yesterday when I fell asleep.
I had a dream that FnF were released this week. It woke me up out of my sleep I was so excited. In my dream, Level 2 was showing prices in the $20s per share pre-market and it came to a stand still because there were no more shares pre-market as people bought them all up.
It was all over over the news. I remember that CNBC was on in my dream and it was broadcasted as Breaking News.
God, I hope that dream comes true soon. It felt so real.
That thought was going through my mind, too....to exit and go into other plays. However, I tend to exit right before the stock blasts off do I am exercising some patience here.
Good luck if you decide to exit. Fannie is definitely not the only play in town. Opportunities in the market are plentiful.
Hey John,
Did you manage to get in when this puppy dipped below $1 not too long ago? I remember we were discussing how gold was going to rebound but I didn't see it coming back this fast.
I hope you are making some good profits, man.
11/19/14: Mel Watt Senate Hearing info:
http://www.banking.senate.gov/public/index.cfm?FuseAction=Home.Home
THE FEDERAL HOUSING FINANCE AGENCY
Wednesday, November 19, 2014
10:00 AM - 12:00 PM
538 Dirksen Senate Office Building
The COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS will meet in EXECUTIVE SESSION to consider the following nominations: Ms. Lourdes Maria Castro Ramirez, of California, to be an Assistant Secretary of Housing and Urban Development; and Ms. Therese W. McMillan, of California, to be Federal Transit Administrator, U.S. Department of Transportation. Following the EXECUTIVE SESSION, the Committee will meet in OPEN SESSION to conduct an oversight hearing on the “The Federal Housing Finance Agency: Balancing Stability, Growth, and Affordability in the Mortgage Market.” The witness will be The Honorable Melvin L. Watt, Director, Federal Housing Finance Agency.
All hearings are webcast live and will not be available until the hearing starts. Individuals with disabilities who require an auxiliary aid or service, including closed captioning service for webcast hearings, should contact the committee clerk at 202-224-7391 at least three business days in advance of the hearing date.
Calm down, bud. It's not that serious. Just making others aware of what's floating out of WSJ.
WSJ: Hedge Fund Casualties from Fannie, Freddie Multiply
http://blogs.wsj.com/moneybeat/2014/11/18/hedge-fund-casualties-from-fannie-freddie-multiply/
More hedge funds are joining the ranks of those injured from a September court decision that slammed shares in mortgage giants Fannie Mae FNMA +0.98% and Freddie Mac FMCC +2.03%.
Carlyle Group CG -1.34%’s Claren Road Asset Management hedge fund arm, earlier tipped as among those hit hardest by the fall-off in Fannie and Freddie shares, ended up with its worst month ever in October.
Claren Road finished last month down nearly 10% and is off about 9% for the year. Its assets dipped to $7.3 billion at the end of October from $8.5 billion the prior month, according to investor documents viewed by the Wall Street Journal. Claren Road was founded in 2006 by veterans of Citigroup C +0.45%.
New York hedge-fund firm Marathon Asset Management lost 3.2% in October on its Fannie Mae and Freddie Mac wager, according to an investor letter viewed by the Wall Street Journal. The losses canceled Marathon’s paper gains on the trade.
The bets on the Fannie and Freddie had been bold ones by hedge funds. Several hedge funds including Fairholme Capital Management, and Perry Capital challenged the U.S. government’s 2012 decision to sweep nearly all of Fannie and Freddie’s profits to the U.S. Treasury rather than collect set dividend payments.
A U.S. District Judge on Sept. 30 to threw out the lawsuit bought by the hedge funds. Fairholme and Perry are appealing the decision.
In a letter to investors this month, Claren Road said the decline in Fannie and Freddie’s shares was “much greater than we had contemplated” but added: “Our conviction in this investment remains unchanged…In our view, it has been and remains a multi-faceted investment and continues to have a compelling risk-reward profile,” the letter said.
Marathon also told its investors it believed its remaining, smaller stake in the mortgage-finance giants “offer compelling value with upside catalysts.”
Still, Marathon said in its investor letter that it had sold off some of its stake, made up of both preferred and common shares, with the falling stock prices “trigger[ing] stop-loss provisions in Marathon’s risk management policies.”
NavyCmdr, you are on it, big dawg. $$FNMA
WSJ: Close Greenberg Colleague Testifies Today in AIG Bailout Trial
http://blogs.wsj.com/moneybeat/2014/11/18/close-greenberg-colleague-testifies-today-in-aig-bailout-trial/
Hank Greenberg isn’t going to take the stand in the AIG bailout trial, but one of his closest allies will.
Howard Smith, a long-time close colleague of former American International Group Inc.AIG -0.15% Chief Executive Maurice “Hank” Greenberg, is scheduled to testify Tuesday morning.
Mr. Smith was one of the chief financial officers at AIG when Mr. Greenberg ran the company. He’s now vice chairman of finance at Starr Cos., an insurance and investment conglomerate Greenberg has been building since he left AIG in 2005.
But the government confirmed for the court Monday–as it had indicated Friday in a letter to Greenberg’s legal team–that it won’t call Greenberg himself.
Mr. Greenberg ran AIG for nearly 40 years, transforming it into a global powerhouse. He was its biggest individual shareholder when it was bailed out by the government in September 2008.
The 89-year-old is the driving force behind the lawsuit, which accuses the government of overstepping its legal authority in demanding a 79.9% equity stake in the company in exchange for providing an emergency $85 billion loan in September 2008, among other stiff terms. Yet the government had apparently considered calling him to bolster its defense.
Instead, government lawyers are calling Mr. Smith. In a pretrial filing, they said they might call Mr. Smith to testify about AIG’s financial condition and efforts to secure a private investment in AIG starting in 2008.
The government is wrapping up its case this week.
I think I read a post on this board stating that his background is in helping to get companies listed. This would be huge for FnF.
I believe lots of pressure is coming down on the government concerning FnF that we are not even aware of....and it is coming from Wall Street. Icahn, Berkowitz, Ackman (the hottest investor and Forbes' pick of the year) to name a few.
I believe lots of pressure is coming down on the government concerning FnF that we are not even aware of....and it is coming from Wall Street. Icahn, Berkowitz, Ackman (the hottest investor and Forbes' pick of the year) to name a few.
Regardless of the day to day price swings and the news releases that comes out, FnF are coming home to the shareholders. It sucks to see my position in Fannie drop so much but that's a part of the game. Down 5% today, up 2% tomorrow, and so on and so forth until The Real News arrive....and it's coming soon.
The court decision does add more risk. However, people who cannot stomach the risk with FNMA have the option to sell instead of holding and worrying, which is not good for anyone's health.
Fannie will be fine. The market is just reacting to different news articles, etc. This will pass with time and Fannie will be going up again. We are just experiencing a down cycle right now.
I believe shorts / sellers are being lured in so the stock can be shot up on the shorts and have sellers who want to re-enter chase. I just saw on Level 2 where there was 90K+ BID support at $2.07 and it quickly disappeared.
Very interesting.