Fannie Mae Preferred S (FNMAS)

[NYKnuckleballer]

Holding Pattern

The same one we've been in for the past four years.

I think I'd rather we be on the pink sheets than this trading purgatory called the OTCBB.

While the DOW recently crushed through it's all time high, the OTCBB plummeted to at least a 17-year low in terms of overall money volume.

http://www.otcbb.com/TradingData/HistAnnualStats.stm


To take it one step further, look at the top 100 issues on OTCBB for February.

http://www.otcbb.com/dynamic/tradingdata/top100list/top100.htm

FNMAS is like 23rd in share volume but 2nd in money volume.

Of the top 23 stocks, only one has a share price above a buck: FNMAS. Most of them are fractions of a penny.

Then think about FNMAS's daily volume. Most days it's languid, boring, MM's trading back and forth; and the stock price never deviates more than 5% the entire day. Other days, we have million share transfers that truly aren't "market activity". I guess that's two big boys making a deal on the side or something. Something the market never touches.

In short, there is no real money turning over on FNMAS / FMCKJ, let alone the illiquid models.

When FNMAS (and other $25s) drop below a $1.30, buy; when it gets above $2, time to seriously consider selling. Rinse and repeat.

Considering by your own admission, you're an "old" 75 (forget age), it might be better to just rinse and walk away.