Fannie Mae-No Politics (FNMA)

[El Mago]

FNM -Current Run up,

I am no investment professional . But I do believe that the current run on FNM may be fundamentally more sound than the previous run we saw in late Septemebr.

1. The bad news is becoming old news.
2. The recent reply to the NYSE about maintaining share price criteria to meet listing requirements may be a clue that the Conservator is not interested in wiping out shareholders.
3. The Government has backed up the two GSE's and explicitly covered their debts.
4. Paulson is on some sort of a leash that has stopped him from the merger and acquisition of the American financial system withe the American government.
5. Black Friday retail was up.
6. Mortgage rates are down and there is apparently a rush to refinance.
7. Investor confidence is returning to the market (look at last 3 day volume for FNM)
8. Newswires are becoming more sympathetic to FNM and FRE.
9. Large numbers of shares being trade AH and pre-market indicate that some big investors are accumulating shares on the cheap.
10. Bashers are becoming more desperate and backfilling old negative news rather than having new nwes to pummel serious longs with.

That said the stock is going to increase in value but not expnentially. This will be a slow and sometimes trying climb up. But maybe in 2 years we'll see some really big gains as the overall economy improves.