Freddie Mac-No Politics (FMCC)

[obiterdictum]

Forbes - FREDDIE MAC (NYSE: FRE) | Buy/Hold/Sell Analysis - October 17, 2008, 12:21 AM

 
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
 Average                    Strong    Moderate             Moderate    Strong 
 Recommendation             Buy       Buy        Hold      Sell        Sell  
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
 Current-Hold                 4        1          5          0          0 
 1 Month Ago-Moderate Buy     5        1          4          0          0 
 2 Months Ago-Moderate Buy    5        1          4          0          0 
 3 Months Ago-oderate Buy     4        1          4          0          0 
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 
 Of 11 analysts reporting on the stock, 6 gave positive ratings and 5 gave 
 neutral ratings. There are currently no negative ratings. 
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Comment: FRE analysts' recommendations posted on various sites are mixed. Forbes is off the sell wagon. Reuters goes on and off the sell wagon with ratings tied to market changes. Market Watch's posted FRE recommendations are mixed across categories averaging to Hold. Nasdaq is mixed as well averaging midway between Hold and and Underperform.

What accounts for the differences in recommendations? Certainly, the standard fundamentals in the hands of the analysts are the same. Standard and Poor has FRE’s 2009 growth estimations at 6% with a $2.50 target price.

With a range from strong buy to hold to strong sell what we have displayed in the different analyst recommendations posted on the various financial web sites are different degrees of emotional fear, market biases based in the uncertainty of market conditions fostered by redundant repeat of fear based news, inability to gauge future investor sentiment and concern over personal and company status and reputation.

Perhaps after FRE reports on November 17th, the analysts will come to a better consenus based in FRE's economic realities, the US economy's great dependence on its success, the actual condition of the US's resilient economy vs. indulging in the over-rated forecasts of gloom and doom, and the implicit support guarantees given to FRE during this credit crisis.