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I think FRTD bought ICNM
Ngo is the last name, That is middle name, T is first name. American names go by first name middle name and last name. Vietnamese names go by last name first, middle name and first name.
Detearing in the house!!!!!!!
Summary
GSE Shareholders Getting Some Respect.
New Bill Raises New Questions.
The Common Stock may be Worth Something.
Last night, it was announced that Maxine Waters would unveil her version of GSE Reform today. This bill, presented by a ranking member of the House Financial Services Committee, would outline a method of reforming the mortgage market, including the role of Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC). Details are forth-coming.
For investors, this bill may be a welcome sign and shareholders may finally be getting some respect. The New York Times writes,
"Ms. Waters's bill also clarifies who would get paid first in a wind-down of Fannie and Freddie, starting with the Treasury, which would be paid according to the original terms of its bailout of the mortgage giants. Those terms were later altered, prompting shareholder lawsuits."
Many of the lawsuits are seeking that the so-called "3rd Amendment" be struck down as an unlawful self-dealing contract between two arms of the same government. This self-dealing contract amended the original Conservatorship agreement that was made in 2008 when the companies were seized. Many investors relied on the original agreement when buying shares. Then, in August 2012, after the companies returned to profitability, the Treasury amended the agreement, taking 100% of each company's net worth. Investors claim that this is not only a self-dealing contract, but a breach of their Constitutional Rights.
Striking down the 3rd Amendment would certainly be good news for junior preferred stock holders. These investments would be next in line within the capital structure and may eventually go to full redemption value, if the bill passes. In the two companies combined, there are approximately $34 billion in liquidation value claimed by the junior preferred stockholders.
It is uncertain how fair this bill might be for common stockholders of the companies. Recent estimates of the two firms liquidation value puts the combined value close to $200 billion. If senior and junior preferred stockholders are paid first, this may leave significant value for the common shareholders. This is all dependent on how the bill calculates the remaining investment made by the Treasury.
Additionally, the punitive value of the warrants must be examined. Due to the Treasury's unprecedented and perhaps unlawful actions in August 2012, should the government exercise the warrants?
These questions and others will remain unanswered until the details of the bill are released today.
Disclosure: I am long FNMA, FMCC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Thank you DT!! I got 24k as of today.
Why I am no longer on your list?
Fannie and Freddie negative outlook upgraded at Fitch
03:00 PM ET · FMCC
The move comes following Fitch earlier today returning the outlook on the U.S. government's AAA rating to stable from negative. "The housing GSEs are among the most active issuers in the capital markets, benefiting from meaningful financial support from the U.S. government."
Both Fannie Mae (FNMA) and Freddie Mac (FMCC +0.8%) are now AAA with stable outlook.
Anything can happen, look at attbf from 0.0001 to 2.78 just my opinion only.
Summary
Pot is currently hot in the stock market as a result of new marijuana-friendly laws in Washington and Colorado.
However, Growlife is overbought, overvalued and declining from a recent sharp peak.
Investors have gotten overly giddy; therefore I think that there is more downside ahead in the near term for the stock.
Growlife (OTCQB:PHOT) recently experienced a sharp rise to $0.78 from about $0.35 at the beginning of March. However, the stock has retreated for the past few trading days after this sharp 55% rise. I think that there will be more consolidation even after this week's decline. I'm not writing the company off entirely, but I do think that the stock rose too far, too fast and has more downside before turning around.
(click to enlarge)
Since this is a speculative penny stock, I think that Growlife investors should only use money that they would otherwise take to the casino and expect to lose. With that in mind, I think that money can be made on both sides (long or short) due to the high volatility of the stock price.
The Growlife companies supply equipment for indoor and outdoor urban gardening, most famously for growing marijuana. The company actually promotes the development of medical marijuana via the website cannabis.org. Growlife Hydroponics owns and operates seven specialty hydroponics stores in California, Colorado, Massachusetts, New Hampshire, and Maine. The stores are designed to provide gardeners with all of the tools that they need for their craft. Although, I think that there is potential for the company in the long term, I think that the stock price will come down a bit more in the near term.
The stock is trading at 135 times sales. Even a momentum stock like Amazon (AMZN) has a reasonable price to sales ratio of 2.34. Other momentum stocks such as Netflix (NFLX) and Tesla (TSLA) have price to sales ratios of 5.8 and 14.7, respectively. This is nowhere near Growlife's triple-digit ratio. This shows that Growlife is significantly overvalued, even as a penny stock.
Growlife is highly speculative at this point because it has a negative cash flow and a sub-par balance sheet. The company had a negative operating cash flow $1.2 million for the past twelve months. Growlife also has a balance sheet full of debt. The company has less current assets than current liabilities as evident in its current ratio of 0.81. There is only $256,000 in total cash on the balance sheet with $1.72 million in debt. Total assets of $1.3 million are also lower than total liabilities of $1.6 million. About 61% of Growlife's total assets are goodwill and intangible assets. Therefore, the company has some work to do to shore up its balance sheet and turn its cash flow to the positive side.
Overall, I think that Growlife has the potential to improve fundamentally and it could be a solid investment in the future. However, the current price is too high and I think that it will fall further. The rise to $0.78 was sharp and the stock is in the process of selling off from an overbought level. I think that the stock could drop another 40% to $0.35, which was where it was trading at the beginning of March. Investors, or should I say traders, might be willing to buy the stock again at that level.
Just added more at 3.15
Frannie prices targets boosted at KBW
01:13 PM ET · FMCC
Fannie Mae (FNMA -15.7%) and Freddie Mac (FMCC -15.5%) get just a little sell-side love, with KBW's Bose George boosting his price targets on both to $2 from $0, though he keeps an Underperform rating on the duo.
The PT change "incorporate(s) the possibility of a combination of a legal victory for shareholders combined with a lack of action on both the regulatory and legislative fronts that hurts the value of the GSEs," says George, who may be the only sell-sider still covering the GSEs after they were put into conservatorship in 2008.
I am 100% agree with you. I am a long investor, I remember when I bought Netflix at $55 and decided to go long, look at how much it is now.
I am with you all the way to Winn!
Big investors stay with Fannie, Freddie despite lawmakers' plans
.
Reuters 5 hours ago
By Svea Herbst-Bayliss
BOSTON (Reuters) - A Senate proposal for winding down Fannie Mae and Freddie Mac slammed their shares over the last two days, but big investors in the government-owned mortgage agencies aren't running away yet.
Fannie (FNMA) and Freddie (FMCC) shares fell 12 percent and 17 percent, respectively, on Wednesday, one day after Senate Banking Committee leaders agreed on a framework for a bill to draw down the lenders.
The sharp decline has hit big-name hedge funds which jumped into the once-failing companies as the housing market rebounded, including William Ackman's $12 billion Pershing Square Capital, Fannie Mae's biggest shareholder.
Despite this week's losses, several investors said they plan to stay the course, acknowledging that they were aware they had invested in such volatile stocks.
Senate Banking Committee Chairman Tim Johnson, a Democrat, and Senator Mike Crapo, the panel's top Republican, outlined a framework for legislation on Tuesday after months of talks that included input from the Obama administration. They said they intended to introduce a bill soon.
But several hedge fund managers, which often lock up their wealthy investors' money for years and therefore have the ability to stick with investments for a long time, said they would be patient and wait.
"There are a lot of details to be worked out, and there was no secret that Congress was planning to do this," said one investor who owns hundreds of thousands of shares and asked not to be identified by name.
Fannie Mae shares fell 49 cents on Wednesday to $3.54 a share on 124 million shares traded on OTCMarket. Freddie Mac ended down 68 cents at $3.36 a share on volume of 61 million shares.
Fannie and Freddie, which own or guarantee 60 percent of all U.S. home loans, provide a steady source of mortgage funds by buying loans from lenders and packaging them into securities that they sell to investors with a guarantee.
Their central role in the mortgage market led the government to bail them out to the tune of $187.5 billion during the 2007-2009 financial crisis. Lawmakers want to make sure taxpayers are never on the hook again.
Bruce Berkowitz of Fairholme Capital Management objected to the plan to wind Fannie and Freddie down. His fund ranks as one of the three shareholders in each company.
"What happened before 2008 was the result of regulatory and management failures, accelerated by political meddling. These failures continue today," Berkowitz said.
"Privately owned Fannie Mae and Freddie Mac are irreplaceable. All the sincere effort expended by the Senate Banking Committee simply confirms that there is no better alternative," he said in a statement.
Other large investors include Capital Research Global Investors and Seamans Capital Management.
Pershing Square has been largely mum on its Fannie and Freddie investment, with William Ackman declining to answer questions about it at an investment conference where he discussed every other bet.
Investors like Ackman, who shorted Fannie and Freddie six years ago, are essentially making a political bet. In addition to anticipating that politicians' plans might be changed significantly, there is something else that keeps them optimistic: lawsuits filed by both Fairholme and hedge fund Perry Capital.
The investors argue that it is illegal for the government to take all the companies' profits. Some investors expect the lawsuits to prevail and for billions of dollars to eventually come back to the companies.
Indeed, Republican Senator Pat Toomey of Pennsylvania, in a letter Friday to U.S. Treasury Secretary Jack Lew, signaled support for getting some cash to Fannie and Freddie shareholders. Toomey said he wants legislation to be "mindful of investors in addition to other considerations."
Shares of Fannie and Freddie are both down more than 30 percent on the week, not long after both hit their highest levels since 2008.
February's rally in the shares helped Pershing Square gain 7.4 percent, putting it up nearly 12 percent on the year, handily beating the average hedge fund's 1.4 percent gain, investors in his fund said. Pershing owns 115 million shares of Fannie and 64 million of Freddie.
This month's losses on Fannie and Freddie are going to hurt Ackman's fund.
"His marks are going to stink for the month," said David Tawil, whose Maglan Capital invests in distressed securities. He said his fund might buy stakes in Fannie and Freddie after lawmakers' language on the proposal is clarified.
Even though the proposal seems to harm equity holders, investors in Freddie and Fannie debt could come out winners.
The difference in yield on Fannie Mae and Freddie Mac bonds over Treasuries shrank broadly on Wednesday, on the view that the Senate plan would assure the government's guarantee of their existing debt. The yield gap between five-year Fannie Mae notes due February 2019 over five-year Treasuries narrowed 0.005 percentage point to about 0.15 percentage point.
Very good comment Blanka!!
GSE investors head for the exits all at once
11:09 AM ET · FMCC
Fannie Mae (FNMA -11.7%) and Freddie Mac (FMCC -12.1%) are lower again in volatile action one day after a the release of a Senate proposal to wind the two down. Both stocks earlier took out the panicky lows made yesterday, but have bounced since.
SA contributor Achilles Research reminds yesterday's news was completely expected and provided zero new information. The bill is the prototypical DOA legislation, especially with upcoming elections.
The selloff, says Achilles, is a classic market panic in a couple of highly speculative and overextended names. Congress will do what it likes, but the fate of shareholders will ultimately be decided in the courts.
Frannie investors find a friend in Sen. Toomey
03:52 PM ET · FMCC
"While I strongly support GSE reform that protects taxpayers, such efforts should also be mindful of investors," says Senator Pat Toomey, sticking up for preferred and common stockholders of Fannie Mae (FNMA -30.6%) and Freddie Mac (FMCC -27.5%) in wake of a proposed bill to wind down the GSEs.
"Taxpayers should be fully compensated, but once they are, investors ... should not be denied their fair share of any remaining value."
"The government¹s actions with respect to the GSEs' profits raise serious concerns, including whether these actions lawfully respect the rights and interests of all Americans."
Previous: Fannie and Freddie plunge on wind-down proposal.
I have my Louis XIII Cognac ready all the way to Wynn!!
I am long with you and I am not worry if it's down to $1 go FnF!!
Please don't tell my wife that I date Fannie Mae, she will be jealous! Lol
I will make sure I bring a Louis XIII cognac with me to Wynn! Lol
100% true. I try to buy a house for an investment 6 months ago, still can't find yet any yet they all sold out.
FnF Winn = Toast!!!
I thought you said your plan is $1
Thank you!
He still dreaming for FMCC to go down $1
Marijuana stocks jump after Treasury Dept. sets banking rules
04:04 PM ET · HEMP
Volatile marijuana stocks have closed with big gains after the Treasury Dept. and deputy U.S. attorney general established banking regulations for licensed sellers. Notable gainers: MDBX +21.8%. MJNA +5.1%. GRNH +4.3%. AVTC +10.4%. MWIP +7.6%. HEMP +1.7%.
The rules allow banks to do business with marijuana sellers deemed to be obeying state laws, and not running afoul of eight principles, which include selling to minors and trafficking marijuana to states where it's illegal to do so. However, banks will have to file suspicious activity reports detailing transactions made by marijuana vendors.
The National Cannabis Industry Association calls the ruling, which comes six weeks after Colorado began legal marijuana sales, a "huge victory." But many observers think top U.S. banks will still tread cautiously.
FINRA has issued a warning about potential marijuana stock scams.
Well said Mr Detearing !
He wish he can get FMCC for a buck. Never happen.
Thank you!
I hold only 14.000 can I joint?
Me too, I don't know what happen
Happy New Year to all!!!
How low do you think tomorrow ? TIA
PITTSBURGH, Dec. 6, 2013 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) announced today that its affiliate, PNC Bank, National Association, has reached an agreement in principle with the Federal Home Loan Mortgage Corporation (Freddie Mac) to resolve substantially all indemnification and repurchase obligations related to loans sold to Freddie Mac between 2000 and 2008.
Under terms of the agreement, PNC Bank will pay Freddie Mac a total of $89 million (less credits of $8 million) to resolve certain existing and future repurchase obligations related to approximately 900,000 loans originated and sold to Freddie Mac primarily between 2000 and 2008, and to compensate Freddie Mac for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance.
The Freddie Mac agreement follows the previously announced agreement in principle that PNC reached with the Federal National Mortgage Association (Fannie Mae) to resolve repurchase demands with respect to loans sold between 2000 and 2008.
The completion of these settlement agreements will resolve substantially all of PNC Bank's outstanding and potential indemnification and repurchase obligations related to loans sold to Freddie Mac and Fannie Mae from 2000 through 2008, subject to certain exceptions which PNC does not believe are material. The agreements remain subject to final documentation and approvals by Freddie Mac's and Fannie Mae's regulator. The amount of the settlements with Freddie Mac and Fannie Mae had been fully accrued by PNC Bank as of September 30, 2013.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.
PITTSBURGH, Dec. 6, 2013 /PRNewswire/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) announced today that its affiliate, PNC Bank, National Association, has reached an agreement in principle with the Federal Home Loan Mortgage Corporation (Freddie Mac) to resolve substantially all indemnification and repurchase obligations related to loans sold to Freddie Mac between 2000 and 2008.
Under terms of the agreement, PNC Bank will pay Freddie Mac a total of $89 million (less credits of $8 million) to resolve certain existing and future repurchase obligations related to approximately 900,000 loans originated and sold to Freddie Mac primarily between 2000 and 2008, and to compensate Freddie Mac for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance.
The Freddie Mac agreement follows the previously announced agreement in principle that PNC reached with the Federal National Mortgage Association (Fannie Mae) to resolve repurchase demands with respect to loans sold between 2000 and 2008.
The completion of these settlement agreements will resolve substantially all of PNC Bank's outstanding and potential indemnification and repurchase obligations related to loans sold to Freddie Mac and Fannie Mae from 2000 through 2008, subject to certain exceptions which PNC does not believe are material. The agreements remain subject to final documentation and approvals by Freddie Mac's and Fannie Mae's regulator. The amount of the settlements with Freddie Mac and Fannie Mae had been fully accrued by PNC Bank as of September 30, 2013.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.
PNC settles with Freddie Mac for $89M
09:17 AM ET · FMCC
The agreement resolves substantially all indemnification and repurchase obligations on 900K loans originated and sold by PNC to Freddie Mac (FMCC) between 2000 and 2008. PNC will pay Freddie $89M (less credits of $8M).
This follows an agreement in principal between PNC and Fannie Mae. Both deals require final approvals from the FHFA.
Happy Thanksgiving to you and your family too!!!
Happy Thanksgiving to all FMCC shareholders!!!
Happy Thanksgiving to all the FNMA shareholder !!!!