AI
Thursday, February 28, 2008 8:09:43 AM
FRE News and Chart
Not any surprises here IMO, may be worth watching for a short play
7:44AM Freddie Mac misses by $1.63 (FRE) 25.09 : Reports Q4 (Dec) loss of $3.97 per share, $1.63 worse than the First Call consensus of ($2.34). Net loss was $2.5 bln for 4Q07, compared to a loss of $1.2 bln for the 3Q07. The majority of this increase in loss resulted from significant mark-to-market losses detailed below in the discussions of other non-interest loss and other non-interest expense. Without giving effect to the accounting changes for the co's guarantee obligation discussed above, the Q4 net loss would have been $3.7 bln. "Today's economy represents one of the most severe housing downturns in American history, and our results reflect that difficult environment as well as Freddie Mac's steadfast commitment to its important mission of providing liquidity, stability and affordability to the U.S. housing finance system... We remain extremely cautious as we enter 2008. If the economy weakens substantially from here - a possibility for which we need to be prepared as a company - it will have a further negative effect on homeowners across the country and drive credit costs higher. However, we have taken the steps to add capital, tighten our management of credit risk and institute pricing policies that are more consistent with the risk we bear... In 2008, we will continue to prudently manage our capital, particularly given the outlook for continued weakening in the housing market." In addition, as a result of the continuing deterioration in the U.S. housing market, the co has revised its estimate of total credit losses for 2008 and 2009 to $2.2 bln and $2.9 bln, respectively.
Not any surprises here IMO, may be worth watching for a short play
7:44AM Freddie Mac misses by $1.63 (FRE) 25.09 : Reports Q4 (Dec) loss of $3.97 per share, $1.63 worse than the First Call consensus of ($2.34). Net loss was $2.5 bln for 4Q07, compared to a loss of $1.2 bln for the 3Q07. The majority of this increase in loss resulted from significant mark-to-market losses detailed below in the discussions of other non-interest loss and other non-interest expense. Without giving effect to the accounting changes for the co's guarantee obligation discussed above, the Q4 net loss would have been $3.7 bln. "Today's economy represents one of the most severe housing downturns in American history, and our results reflect that difficult environment as well as Freddie Mac's steadfast commitment to its important mission of providing liquidity, stability and affordability to the U.S. housing finance system... We remain extremely cautious as we enter 2008. If the economy weakens substantially from here - a possibility for which we need to be prepared as a company - it will have a further negative effect on homeowners across the country and drive credit costs higher. However, we have taken the steps to add capital, tighten our management of credit risk and institute pricing policies that are more consistent with the risk we bear... In 2008, we will continue to prudently manage our capital, particularly given the outlook for continued weakening in the housing market." In addition, as a result of the continuing deterioration in the U.S. housing market, the co has revised its estimate of total credit losses for 2008 and 2009 to $2.2 bln and $2.9 bln, respectively.
A tornado is like a stock, it takes just the right conditions to form a huge one but once it forms, nothing can stop it!
my posts are only my opinions, nothing more
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