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And how right you turned out to be!
That's the good thing, I can wait. I had Dividend paying stocks throight my daughters college years and now I have the chance to take some risk. However, with this stock, I think the risk is reletivly low and I think the payoff probability is high. I'm looking forward to the decision by the FCC as well as the end of the gov. shutdown.
Best of luck to you as well.
I am actually happy for today's dip. I was ticked off because I started watching gsat when it was .95 to $1 and thought it was going to be a good investment. Unfortunately, I started buying at the $1.20 mark, $1.30 mark and finally $1.44 before today. I sunk my last available funds in today at $1.29.
This is a risk, but from everything I have read, I think the FCC blessing is quite probable. Once that hurdle is passed, I think $3 at the least is a point of stability. At least I'm hoping.
GLTY
Let's hope we are all angels that get wings!
I would not look at it is stuck in neutral, I would look at it more as a short breathing period before the next climb upwards. I think this is very healthy, nothing to be worried about
That's it, the world is coming to an end! I'm going to strip naked and run through the street.
I understand your concerns, not only with the C&W bill, but any other bills for that matter. However, these bills will probably be void issues according to the outcome of current lawsuits. I don't even pretend to be a lawyer, but I do not see how a company that is a private company, taken over by the government, and later a judge could possibly rule the government abused or overstepped it's boundaries regarding any number of ways that fnf have been handled.
Believe me, if I knew the answer beyond a shadow of a doubt, I would mortgage my house, run up every credit card and pawn everything I own to buy Fannie stock at these prices. No, I am risking a lot, but not wagering my life savings. But I do think the balance of the law and constitution is in our favor. Also, I don't think even Corker wants blame for a possible economic downturn due to a ill conceived manipulation of fnf.
Good luck to us all!
Mrfence - I appreciate your very kind offer. I have a tight schedule this visit, but plan to make visits at least quarterly. I would like to take you up on your offer next time I'm in the neighborhood. It has been 19 years since the last time I was here, and I am really amazed how friendly people are for such a large city. Perhaps when Fannie is re-established out of c-ship as well as re-listed on the NYSE, I will be able to afford to live out this way. It is truly an amazing city. I do not have PM now, but I may decide to break down and purchase a years worth and see what the benefits are.
I have not posted lately, mainly read others posts. However, I do watch for certain things that happen that the government just won't say to the public. One big flinch the government made was when Bernanke announced no tapering of the QE, at least not for now. The claim was that tapering would have an adverse affect on the economy. Well, I'll tell you one thing, if the government passed on what most economists thought would be the best time to taper printing money, you better believe the government will not have the stomach to mess with fnf in any substantial way. The government is petrified of anything that will cause any downturn in the economy, and right now, messing with fnf will do exactly that. Holding true and steady now will be the key, regardless of how much up or down the price moves each week. Right now, day traders are having a field day with the three to five cent swings in a days time. But that in itself is the big risk. Many have said it, and I think the case will be that news will hit after hours or on a weekend, probably around net zero time. What news would be the trigger? I think there is only one announcement that will press the button for launch, the end of c-ship. Those that are not in will miss out on the bottom floor price by many dollars. It's coming, it just takes patients.
GLTY
Howdy Adam! Cool to hear from a neighbor. I live in Pheasant Creek subdivision, which is more or less behind the Sugar Land airport, or across the bayou from Stephen F. Austin H.S. Been living there for about 27 years. I've worked for the same company for almost 30 years, CenterPoint Energy.
I'm visiting in California right now, but after Monday, give me a shout sometime and I'll meet you for coffee. A good place is Minute Coffee off Hwy 6 near Fluor Dr. Maybe we can figure out this thing called Fannie Mae.
Have a great weekend!
Steve L.
If $30 is what you need to quit your job, it could be possibly be this year instead of next, but I am positive we will see $30 by this time next year.
Perhaps someone on this board with more finance knowledge can answer that question. I do know that with how much Fannie has made in earnings over the past two years, it places them up there with Apple, Google and others. However, your question is a good one, and well worth knowing if you are forming an exit strategy. At least when you cash out, it will be on a well thought out goal in mind. There are several very smart individuals on this board that probably has good advice on your question.
You are very correct. Greed (gambling) is dangerous. This is a gamble that will hurt if things go south, but it is not my retirement or 401k. So, the loss would suck, but can be recovered from in time. I have weighed out the risk vs. reward and decided to move in this direction. All we can do is read, study, hope and pray.
Good luck to you!
Well, in the case of 5300 shares, I too would be looking for maximum pps in order to cash out and find another cheap deal to invest in. Still though, a book value of around $40 would have you sitting at $212k. That would get you into a margin account and well on your way to learning different strategies. I wish you luck. Nobody can say what pps would be optimal for you to cash out but your own gut.
Ill is not the word for it. Anger, depression, more anger, etc... I have calmed myself by keeping my eye on the long term goal, and hope like hell I am right.
Last stock split was in 1996. 4:1 split. Doubtful that will happen for many years.
I asked myself that same question over and over after missing the $5 exit. I came to the conclusion that this stock is a long term investment. In 2007, Fannie posted a couple of quarters with .50 dividends, although it looks like the average dividend was in the .30 range.
The way I look at it is through greed. Not short term greed, but long term. I have 45k shares bought at $1.53. If the pps goes up as it has in the past, I do not think it will fall back again. That quick trip to $5 and back was a one time deal. The next should be the real thing. By that I mean there will not be a dramatic drop back down. Sure there will be profit takers that knock the price back some. And maybe that is the correct strategy, to get out your initial investment and then just play on house money. But I think Fannie will climb back to book value and start to pay dividends to common stockholders once again. That is your long term gold, dividends.
Sounds like your wife knows a golden goose that lays golden eggs when she sees one!
Agreed! And to add to the question Fross posed, I think it all depends upon when the release from c-ship happens. That is the question I have been searching for. FNMA pps will fly by $10 per share once released from c-ship, then I assume re-listing to the NYSE would follow very shortly. According to how much is given to the government for the third quarter and how much is left to equal the $180 billion for the bailout will be our next good indicator.
We will have to be patient because it is coming. It will be well worth the wait.
outstanding article. thanks for posting.
Exactly. The points you mentioned as well as many other reasons lead me to believe we will come out on the winning end of this investment. GLTY
You know, I was so mad at myself when I held through the mid $5 and it fell back to earth. I re-lived that decision over and over. I had 60k shares at the time. After all the reflection of the stock hitting $5 again, I have realized that I am not a trader, rather an investor in fannie. I have the benefit of not needing the dividends right now and have about 10 to 15 years until retirement. Looking at that 10 year window, I decided to study hard whether fnf would be around. My final conclusion was that Fannie as well as the shareholders will be around in ten years. So, I think this is not as bad of a gamble now than it was a few months back, even with the C&W bill and Hensarling's bill floating around. I think those bills have done more to raise awareness of the need for fnf for middle class finance to buy houses. I do think there will be some type of reform, but the private capital the bills talk about will probably be shareholding investors.
At least, that's what I hope to see evolve in the next few months.
Good luck, I enjoy your insight.
I say hold for the dividends and retire in comfort.
That was a 38% rise for the day!
I think you are exactly correct. Anything good for the preferreds will be good for the commons and Fannie as a whole.
Oh no, no, no, no,no. Actually, part of politicians duties include writing articles, many articles.
Before committee hearings, he distributes a detailed package containing a rundown of topics to be discussed and a list of sample questions.
While it’s common practice for committee chairmen to offer colleagues a list of suggested questions for witnesses, several Republican members said in interviews that in contrast to previous years, Hensarling’s memos have had a heavier focus on themes and talking points intended to help them stay on message.
Read more: http://www.politico.com/story/2013/05/jeb-hensarling-finance-house-91967.html#ixzz2dESDFLMF
Sounds to me like Jeb really does not have a plan at all. Just a blow hard politician looking for votes, not solutions to problems. Oh, and don't forget. Whoever pony's up that private capital will want a sizable rate of return. This is not utopia you know. You have to pay to play, or go the route of socialism. I guess we know the answer to that.
Finally, the PATH Act removes artificial barriers to private capital to attract investment and encourage innovation.
Others, including some who profit from the status quo, have discussed different reform plans. I welcome them, but all of us must be careful. We cannot allow a plan to become law that simply puts Fannie and Freddie in the federal witness protection program, gives them cosmetic surgery and new identities, then releases them upon an unsuspecting public.
The major problem with the PATH act is, how are you going to limit government control, and at the same time find someone to pony up the billions to take the first hickey if the are mass foreclosures.
That’s why the House Financial Services Committee, which I chair, recently approved the PATH Act — the Protecting American Taxpayers and Homeowners Act. The PATH Act creates a sustainable housing finance system by limiting government control, putting private capital at the center of the mortgage system and giving homebuyers more informed choices about their mortgage options.
Thank you for your service Obred! It is the honorable sacrifice of pay, risk of life and absence from loved ones that keeps this country the greatest on this planet. Many seem to forget or be ignorant of the fact that because of you and all others that serve as well as those that have served for generations give us the freedom to argue, disagree and have the freedom of speech.
Fannie and Freddie will survive in the end. Those who are patient will benefit many times over once law suits and public pressure force congress to release fnf from c-ship. Unfortunately, I think it will be the lawsuits that force the government to release the golden goose.
Stay safe, and again, THANK YOU!
It's just a guess, but I'm thinking strong rumors and leaks will come out on a weekend or after hours. According to how credible the source is will determine how much the pps rises the next business day. You will know when it is the "real deal." The stock will open much higher than the previous business days close, and the chase will begin. At some point, probably $5 to $7, there will be a profit taking dip. That is, until the official word of the release from conservatorship comes out. Then the pps will rocket upwards equal to what we have seen with Tesla.
Just a thought on past observations.
You are thinking hard, but you are missing the base group that supports Obama and the democrats. Their base is not the tax paying population, their base is the welfare and food stamp population. Fannie and Freddie, through the 1994 National Home Ownership Strategy where Bill Clinton pushed the concept that everyone should own a home. Regardless of what anyone says, that was the foundation of the housing bubble. All politicians fell in line afterwards, knowing that this concept meant votes. However, the homes low income families wanted were unaffordable. Builders were not building homes in neighborhoods in the price range of $30k to $50k, besides, low income families want the lifestyle others have that work and make money. Saul Alinsky spells out the liberal attack to divide the nation all too simply and plainly.
The organizer dedicated to changing the life of a particular community must first rub raw the resentments of the people of the community; fan the latent hostilities of many of the people to the point of overt expression. He must search out controversy and issues, rather than avoid them, for unless there is controversy people are not concerned enough to act. — P.116-117/
quite possible that it will close today, a green
Mini-beamme
Damn dude. Colloquially, really! You are my hero for the day. I had to look that one up.
Definition of COLLOQUIAL
1
: of or relating to conversation : conversational
2
a : used in or characteristic of familiar and informal conversation; also : unacceptably informal
b : using conversational style
— colloquial noun
— col·lo·qui·al·i·ty noun
— col·lo·qui·al·ly adverb
See colloquial defined for English-language learners »
That strategy sounds good for a normal it's stock, but fnf are not normal OTC stocks. Right now, they are still bets with the advantage leaning towards the side of recovery. All it takes is for one valid news report to come out regarding the release of fnf from c-ship and the stock would increase extremely high, and extremely fast. There will be no time to get in at a low price for the average trader. Also, I think most people here are not waiting for the occasional run up, we are waiting for the end of c-ship and the true book value of the stock to be realized.
Just my opinion though. Whatever makes you money is the right way for you. GLTY
No, not exactly. I research the liberal outlets of CBS, NBC and ABC to confirm or reject anything I hear, whether from FOX, Rush or any other conservative outlet. I want the truth. Nothing more, nothing less. And in that pursuit of the truth, I find obama and other liberals lie more often than conservatives. Now, I said conservatives, not republicans. There are some really scumbag republicans such as boehner. I believe everyone has their right to their own opinion, just don't force that opinion on me.
If you were to research the truth behind each one of those points provided by your ultra liberal source, you would find the truth is far from what the left wants you to believe. Expand your horizons when it comes to research and you might become more informed.
No, he's getting advice on his fantasy football league.
That being said, in your opinion, is there any leakage of actual documentation of the coming reed bill? Investigating the progress of this proposed bill, it seems to have been brewing since June, if not earlier. Do you think news of this bill can still cause interest during the vacation, or do you think we will be flat for the duration of the vacation.
Enjoy your posts, even though I may agree only 70% of the time. It's all good!
Do you have a citation stating this, or you just basing this on guesses?
You really cannot deny something that comes out of the mans pie hole. When he gets off teleprompter, he speaks what he thinks. Each quote can be cited from a liberal news source. So, don't hate on someone pointing out what the man said.