FNMA ... Money in the bank
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Quite the day haha:
So one key note is about 50 MILLION Shares traded in the first hour.
---This was a complete exit for many many many investors.
On a positive note, the bounce back up has been relatively sustained.
Many of those investors are now just waiting on the sides, thinking it will tank. But the buying pressure has kept this up into only being RED by single digits.
IMO, the bullish trend is still in effect. Natural to see a few red days and people taking profits during any uptrend.
ADX is still showing a strong uptrend.
Parabolic SAR is still showing a bullish pattern.
Volume is still very good.
However I do understand there are many flipping opportunities.
From a CHARTIST perspective. Bearish if closes below middle of yesterday- about $1.33 STAY LONG if closes above
http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=2205
That will be a solid close. It seems headed that way
I use Scottrade.... they do have .5% fees when u buy and sell stocks under $5 though.
I called after joining and asked if they could do anything about it.... so now any trades under $5 are just 10 dollar flat rate and no fees, just like TD ameritrade. All other trades are $7
Really great service.
I also like that I can drive to a local branch and talk in person to brokers. Sometimes we just have a nice chat when they are not busy.
Great customer service. Also they host live seminars at their offices for free..... helps people learn.
Do you think we close green, what pps do people think we will close at.?
Where do we close today???
That's what i like to hear
I now have more money in FMCC than FNMA.
Both will go up big again tomorrow I believe. Seems to me a lot of selling happened yesterday around a dollar and even today out of fear.
institutional long investors/ Investment firms have now entered the market on a more grand scale.
Quick question????
On the other board some have started to post that FMCC is better investment than FNMA because it has roughly half of the SHARES OUTSTANDING.
REVENUE AND INCOME are about only half on FNMA though
What are your thoughts on this. ??? Thanks in advance.
Maybe so, but do you think the over 180 million dollars in volume was PENNY FLIPPERS. This is so massive because of institutional investors joining the game.
And they tend to be long term :)
AMEN, about time. rationality.
Gaps are self fulfilling prophecies. Sometimes Gaps take years to fill, and sometimes they never fill at all.
Gaps are important because if enough people (market) believes they will be filled, then they will. (the self fulfilling prophecy)
IMO, it doesn't seem like the major institutions buying right now are really looking at the gaps, but maybe they are. haha
best of luck.
OTC market doesn't trade after hours. You're going to be ok. haha.
Basically it was a trade that went through during day but didn't show up until after hours. But it did happen during the day and not after hours.
But you did make a profit so congrats.
I WAS ONCE TOLD BY AN EX CEO:
"NOBODY EVER LOST MONEY SELLING AT A PROFIT."
If you're biggest investing mistake is selling too early and taking profits, I'd be interested to see your investing strengths haha.
Hindsight is 20/20 and sometimes make you want to throw your computer through the wall. I hear ya.
HERE IS YOUR BEST BET.
Take a step back. Look at charts, fundamentals, etc. Tell yourself, if I get in tomorrow, do I believe the pps will make me money within a day? a week? a month?
WARNING:
If you try and justify you're selling and say to yourself, I will get in back at 1.03, . Be real and evaluate without emotion.
IMO, waiting could lead you to possibly miss out on some pretty heavy gains. do not invest, or not invest because of emotions.
Best of Luck.
http://www.barchart.com/opinions/stocks/FNMA
Went from 96% yesterday , to a 100% today.
If the stock had risen to $1.50 and then closed at 1.20, I would say be careful.
I'm more of a technical trader as of recent. ANY TIME A STOCK CLOSES AT THE HIGH OF THE DAY..... IT MEANS THE UPTREND WILL CONTINUE.
IMO. I don't even think you will be able to buy at 1.20 . Most likely a gap up tomorrow. If you can get in under 1.25, that would be impressive.
With the ADX, Parabolic Sar, and the strong MACD crossover. This could very well be over 1.80 by the end of week.
http://americanbulls.com/SignalPage.aspx?lang=en&Ticker=FNMA
http://americanbulls.com/SignalPage.aspx?lang=en&Ticker=FMCC
http://www.barchart.com/opinions/stocks/FNMA
She is getting pumped full of millions from institutional investors.
:)
U da man. I like making money.
The bus is starting up. How great will Obama look if he has the shares sold and gets those billions.
I agree, I was speaking of public and private sector. I should of specified. fnma/fmcc are headed way way up.
I mean private as in not owned by Government. Yes they are a publicly traded company. Sorry for the confusion.
That has been the big debate, if FNMA/FMCC will be released from government control and go private(public company)
And R/S, I think you are way off on that one. You have been in penny land too long where everyone talks about R/S and uplisting.
When Sallie Mae became private(not under government control) they had many splits, but never a R/S
So if you are investing for the movement of the market. Common stock is the way to go.
ALSO NOTICE TODAY THAT PREFERRED OF FANNIE AND FREDDIE ARE RED TODAY
But SAllie Mae, when they went private; Common stock holders were the real winners.
Sallie Mae was a government GSE that privatized.
The common stockholder, on the other hand, is more likely to make profits from stock price appreciation than with preferred stock. Common stock moves as market conditions change, making common stock investing the default choice for many.
I read on investopedia that preferred stock is in the middle between the idea of common stock and bonds.
They have higher risk, hence higher loss or reward.
http://www.mint.com/blog/investing/common-vs-preferred-stock-10122010/
TECHNICAL UPDATE:
MACD lines crossed. Uptrend confirmed and happening.
Volume increased today along with share pps.
Parabolic Sar established bullish trend 2 or 3 trading days ago.
what are all these filings out
Very good post. Nice clarity.
Even if the preferreds are changed into commons, the market cap still is only about 5 Billion right now with the conversions.
I really believe pps will go up 10 to 20 times in the next year or 2.
Someone correct me if I'm wrong,
but under the SEC which protects shareholders... either a chapter 11 or 7 bankruptcy is the only way a publically traded company can cancel there common shares?????????????
Also just a thought for the Day.
Sallie Mae wasn't bailed out and it's stock never tanked so dramatically before they were privatized.
with all the splits, investors would of made about 75x their money in 7 to 8 years., not including every quarter dividend payments.
conclusion: FNMA even has more potential because of how significanly low the pps dropped. went from $70 to .30,, or 30 cents.
Both government GSE's with Private stock ownership.
Both backed loans.
Housing vs Students.= both I'd say are of superior importance to democrats especially.... Come on Obama...make me rich
Sallie Mae was successful before privatization... this made it easy to get private institutions involved.
Fannie Mae is successful and making billions.
If there is a time to hand it over to the private sector, it is now, when the economy is recovering and doing better.
Sallie Mae was "winding down"
they want to Wind down Fannie Mae.
winding down- government involvement (taxes shouldn't ensure loans)... private companies should.
IMO, GSE's are very very similar. I can't see any difference beside the fact that of the bailout, which they are paying back.
Am I being punked right now????
You are giving input on FNMA, a government GSE and you don't know about Sallie Mae??
How can this be.
Sallie Mae was a government institution that backed loans. They privatized and made investors rich.
Look at my other posts. I posted a 300 pg article, and from page 140 or so i pasted a quote concerning the structure of Sallie Mae and how it was stated they had a duty to shareholders
Google or wikipedia it... look at the historical chart. Account for the splits.
Never works out???
Look at Sallie Mae, the only other privatized GSE that I can recall.... you would of make close to 75 times your money plus common stock dividends every quarter.....can i say weeeeeeeeeeeeeeee
We live in America. SEC is in existance. Look up reasons why a company can eliminate common stock... It is not cuz they are successful and profitable. LOL
http://www.treasury.gov/about/organizational-structure/offices/Documents/SallieMaePrivatizationReport.pdf
GSEs differ from
both Federal agencies and private companies in that although they are created by Federalstatute generally to fill some unmet need in the credit market
and although they are
instruments of Federal policy, they are owned and managed by the private sector. As
such, SLMA’s board and management had a fiduciary duty to shareholders.
GSE gone private:
Sallie Mae document
http://www.treasury.gov/about/organizational-structure/offices/Documents/SallieMaePrivatizationReport.pdf
GSEs differ from
both Federal agencies and private companies in that although they are created by Federalstatute generally to fill some unmet need in the credit marketand
although they are
instruments of Federal policy, they are owned and managed by the private sector. As such, SLMA’s board and management had a fiduciary duty to shareholders.
http://www.treasury.gov/about/organizational-structure/offices/Documents/SallieMaePrivatizationReport.pdf
GSEs differ from
both Federal agencies and private companies in that although they are created by Federalstatute generally to fill some unmet need in the credit market
and although they are
instruments of Federal policy, they are owned and managed by the private sector. As
such, SLMA’s board and management had a fiduciary duty to shareholders.
How would cancelling benefit the government in any way???
Please be rationale. You are speaking of a billion dollar profitable company.
I read a couple posts stating that the common shares will be eliminated if FNMA goes private.
Just for rational discussions sake, how would eliminating common shares benefit the government?
This company isn't in any sort of restructuring or bankruptcy due to financial difficulties.
I'm just looking to hear a reasonable explanation as to why this would be beneficial.
Responding on this board as well. Relevant.
Both GM and FNMA/FMCC were bailed out during the recession.
4 years ago is when bankruptcy occurred after bailout.
So why didn't FNMA/FMCC become bankrupt as well????
That is the first question:
My answer: GM consisted of having a failing business model. Why were they failing? Other companies like honda and toyota were destroying them and taking all of there market share. People need cars, but they don't need GM cars.
Lets say that K-mart is a failing massive company(no clue to actual situation of kmart). A bailout will only deter bankruptcy for a period of time... why? because a failing business model is a failing business model.
Now lets look at FNMA/FMCC. Do they have any significant competitors? NO. Currently they are backing 90% of mortgages. Is there business model a failing business model? NO , recent billions of dollars of profits prove they are a success. So why did they fail in the past? Bank of AMerica and other banks scammed them and are now paying back billions and billions to FNMA/FMCC.
If Fannie was going to be bankrupt, that would of happened 4 to 5 years ago.
Great technical analysis article!!!
Both GM and FNMA/FMCC were bailed out during the recession.
4 years ago is when bankruptcy occurred after bailout.
So why didn't FNMA/FMCC become bankrupt as well????
That is the first question:
My answer: GM consisted of having a failing business model. Why were they failing? Other companies like honda and toyota were destroying them and taking all of there market share. People need cars, but they don't need GM cars.
Lets say that K-mart is a failing massive company(no clue to actual situation of kmart). A bailout will only deter bankruptcy for a period of time... why? because a failing business model is a failing business model.
Now lets look at FNMA/FMCC. Do they have any significant competitors? NO. Currently they are backing 90% of mortgages. Is there business model a failing business model? NO , recent billions of dollars of profits prove they are a success. So why did they fail in the past? Bank of AMerica and other banks scammed them and are now paying back billions and billions to FNMA/FMCC.
If Fannie was going to be bankrupt, that would of happened 4 to 5 years ago.
I'm no behavioral psychologist... but just the way they looked to be nervous, un-natural, and continually swallowing and trying to come up with BS.
I'd have to say they didn't prepare or have any knowledge of the subjects.
Not liking the names Fannie and Freddie Mae as a reason to not invest in a company.... probably the worst reason any analyst has ever given. You give 2 min of info and that is part of the rationale...LOL
THE VIDEO:
Matt Koppenheffer, guy on the left. Completely nervous and has no clue what he is talking about. LOL.
Lets "completely replace" a company and do the same thing that company is doing.- u idiot, why not just have this company go private??????????
And good luck forcing private companies to enter the GSE market.... not very profitable. You would have to raise rates to encourage this and would result in higher home mortgage rates.
"I just don't like the names Fannie and Freddie mae, it just doesn't sit well with me."
Can they hire anyone more mentally incapable of rational thinking.