Fannie Mae Preferred S (FNMAS)

[skibrian]

August 17th was a dark Friday morning...FHFA release an hour before the bell, give or take. A couple weeks after great earnings.

Well, I'm hanging in till at least May as the 1Q for both companies will be yet another record breaker.

praying I don't live to regret that decision...

but...either they come out and outright tell us that junior securities will have no value (rather than "hinting" or "Advising" as such) or they release from conservatorship at some point down the road.

the other alternative is Congress passes a bill to kill them. but I don't see congress passing anything substantial. I do think they might tack on the Senate bill as an ammendment to prohibit gaurantee fee hikes (homeowner tax) to pay for government programs and no redemption of sr. preferred without congressional authority. that later portion of the bill could put us in limbo a LONG time.

well...i'm riding the wave for now. buy the rumor, sell the news. trouble is, if "sell news" gets released, it will be another 75% blow to the current share prices...and probably faster than any of us can execute a trade on the way down.