Freddie Mac-No Politics (FMCC)

[obiterdictum]

Hi Travel5. Sorry for the late reply. The court cases, the actions and reactions of plaintiffs and defendants, the NWS schedule to reduce the GSEs capital reserve, and GSEs quarterly returns are of interest. There is not much to speculate about. There is only waiting to see the unfoldings and effects of each.

These are distressed stocks that are tied to and influenced by regulatory, congressional and federal court actions. There are unresolved issues in all three areas and until they are resolved, more or less, stock valuations will be made under a cloud of uncertainty even though the fundamentals of the GSEs business remain secure and profitable. There is risk and time to resolution of the issues is unknown.

As you may know, investment advice is not offered. Consideration of the obvious risks and probable outcomes is the best that anyone can do. This has been done and presented by the biggest GSE investors for preferred and common stock: Berkowitz and Ackman. Non-investors cannot tolerate the risk factors and uncertainties and emphasize these in their valuation equations.

On the other hand, there are day and short term traders who have no concern for the long term investment and buy and sell for profit whenever they can.

Being unable to decide to invest, not invest or divest is not useful or beneficial.