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[littlefish]

researcher59-

ever considered looking at FNMA and FMCC? I bought starter in FMCC today and added to an existing small FNMA position as it dipped under $0.3.

Tons of debt of course with preferred shares owed to treasury ($117 billion for FNMA alone). But they have serviced those payments last 2 Qs and have increasing earnings, loan quality strength, lower chargeoffs, lower loss reserves, lots of trends in their favor even though Q2 is seasonally strong.

Annualized PE if you took Q2 reuslts would have both companies under .25 PE. Also, that is after the preferred payments and includes credit derivative losses. Still fairly risky with the leverage and FNMA and FMCC well known as the cesspool/garbage dump for banks to hand over bad loans to but with housing market certainly seeming like it has turned I think it's worth a glance.

BTW, both qualify for Motherboard now

Also been nibbling on SFD when dips under $18. More of a value long term play with some insider buying recently.