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And, it's also the reason some in Congress are pushing to retain them. Don't over-simplify this ... If it were easy there would all ready have been a resolution.
My money is on reform, release and retention.
But, they've been told they cannot remain in c-ship indefinitely. The amendment may have solved their short-term problem. It can't solve it long term.
As I said, this is going to be very interesting come September.
This post is completely full of innuendo, and should be proven wrong upon quarterly release.
And, only the FHFA Director can make that determination. Thus, either of you may be right and may be wrong. Seems you, 955, are clearly of the belief that realizing dividend payment equaling the $187 billion bailout is not demonstrating solvency. Blue clearly believes it proves otherwise. Since net zero is right around the corner, we are going to know the answer as to whether the decision makers see this as "repayment" very soon!
Nice little discussion you guys have going. People can learn from it!
Personally, I am expecting September to be a really interesting month as Congress gets back into session. The microscope power will be cranked once they start discussing things. Multiple bills out and on the table to be tossed around. Media will be grilling anybody who will take a question. Volatility will return once again IMHO.
November and potential to reach net zero to follow ... This is gonna be fun!!!!
Good stuff! Previous poster called this a dog ... Nothing like proving our dog can hunt!!!!
Timing seems ripe for a little run up going into 2014!!!
You guys are killing me tonight ... Insert comic sayings: BAM! Pow! Wham!!!
We really do hope for the same thing, TRex. I do know that from the many months I've read your posts.
And, I enjoy your wit, sarcasm and humor ... Just thought I might ask you to not over do it.
All the best!
The one claiming to be the smartest in the room usually isn't ... They normally just have the biggest ego.
Ask everyone you can who works in banking, mortgage lending or real estate whether the government can "shut down" F&F and listen to what they say.
Add in the lawsuits pressing the government on constitution takings clause.
Throw in the trillions these companies are worth and then add the billions in profits being generated.
Believe it will all equal out to these companies reaching net zero and being released from c-ship.
My thought: if such a bill is introduced it will blow through 2 and reach 3.50 in rapid fashion.
A GREEN close ... that's what you gotta love to see!
GO REDG!
Been asking every banker, mortgage writer and realtor I know and meet the same question: "Can the government do away with Fannie and Freddie?"
Every response is the same: "No."
Try it yourself ... Makes my belief a little stronger about the long term hold on both of these tickers!
Buy, moderate, sell, bash ... Wow! Negativity here smells awful and helps nobody!
How long do you think it might take to turn an idea into a comic, prep it for a movie (or tv show), write script, cast, film, edit and release? Think your expectations might be a tad high if you don't have a year or more to hold on to whatever you purchased.
Sure fun to accumulate these cheap shares for a long term run.
Y'all keep bashing and I will keep buying!
Thanks! And, good luck!
Too bad you sold ... They got what they wanted. This stock isn't for everybody. Going through these hills, valleys, mountains and ravines can be tough as heck on the nervous system.
But, in the end - which is down the road a ways - net zero and release from c-ship will happen. Then, the run will be epic!
GLTYA
That's funny! And, all too often, very true!
Thanks for the breath of fresh and funny air!!!
Watching this morning, I have the exact same thought - some serious "games" being played here!
Continuing to accumulate on these dips ... This is a great buying opportunity for longs!!!
Maybe not, but it's solid as heck!!!!
Beginning to think you're on the wrong side of the nightmare yet?
Been accumulating all year for a 2014 bonanza ... Right on track!
Big money players, great location and ready to produce - liking this play more all the time!!!!
Thanks, jives! I will be adding on Monday!
Got me ... Kinda teed it up for you, though!
Was hoping for some feedback on what PPS you think this might be capable gaining short term.
Thanks!
Define "soar" for me, please.
Appreciate your consistency Beambe.
But, I really appreciate you're consistently wrong.
GLTY
Great post!
Could not agree more!!!!
If this isn't a sticky all ready, it should be!
GREAT POST!
Hoping this comes across correctly, Outcast, because I say it with respect: I find any play on this stock to be risky as heck. None of it appears to me to be too good to be true!
Your advice is certainly to be heeded. Thanks! Good luck to you, too!
Flip it today? Was a money maker for me!
And, that's not going to change! Thanks, Blue!
Chump change ... Will pick up more shares in the morning. This opportunity is far too good to miss. C-ship will end. Up list to follow. New FHFA Director will lead Freddie and Fannie to new heights. The future here looks very bright to me!
Not going to miss this ride!!
This post offers a very different view from the one upon which I replied.
The first sentence has both fact (at the time written): PPS is at $1.14 down from $5 and speculation: the federal government is actively trying to shut the company down.
I just wish you had the solid numbers (facts) in support of the following statement: It is a fact that hedge funds are not acquiring shares with the intent of holding them beyond a swing.
I'm holding based on my belief the pps will return to the figures we have seen (and, beyond for that matter). As such, I don't believe the government will be shutting them down. If I'm right, the hedge funds which you speculate upon, will certainly be moving in the direction of buying and holding, which should certainly help the pps rise.
We shall see ... Long road ahead!
That's also a VERY speculative statement. But, you knew that when you wrote it. There are SOME in Congress who have come out in support of "shutting down" Fannie and Freddie. There are others who are equally as supportive in "retaining" them. The POTUS has spoken twice in the past week on the situation and has carefully used words like "winding down" and "reforming".
All of this is exactly why these two great American companies are in this position. If it were a given either way the pps of both would be VERY DIFFERENT. To that we should be able to agree.
I speculate they will be here far past my time on the planet.
But, whatever is to happen, it's an awful long road still to be traveled.
Cheers!
You've missed my point ... I shall try again. If you don't have facts, it's speculation. We should be able to agree upon that.
If you say, "I don't believe hedge funds are in now." I accept that. To emphatically say the are not, without factual proof, is speculation.
Appreciate reading that thought process, nwsun. Sounds like a very reasonable strategy to me!
I absolutely, positively do not know the inside workings of hedge fund buying and selling. Do you? If not, it's speculation. Get my point?
Pure speculation on the hedge fund situation ... But you knew that when you posted it.
12 months is a long ways out, young Jedi. Seen it below a penny before. Hope not again but if it happens, I will be buying another million.
Careful not to cue the fat lady too early. Bad karma ...
Appreciate that about you, Hawksfan! Thanks!
Buying more of these cheap shares! Net Zero approaching ... release from c-ship to follow. FMCC/FNMA will be here long after I leave the planet!
Buckle up, sit back and enjoy the ride!!