Penny Stock Soldiers (OTC tradeable tickers)/Momentum Plays

[ThePennyDoctor]

I have posted a lot on the FNMA board in the past - I believe this one is impossible for retail to value, and that it should only be traded based on technical’s/momentum/sentiment (personally, I think the value is closer to nil than anywhere else). As such, I sold today when the momentum reversed.

If you are holding this long, you may do OK, but be prepared for a lot of volatility. All the news around FNMA is mostly BS; the real news that will move this ticker is whenever the government lets on how it plans to end the conservatorship. The latter is one of the reasons I would never hold FNMA long - one day the government may announce a wind-up and that the commons will get nothing and the preferred shares a partial payout (this is the most likely scenario and why FNMA traded at .15 for so long).

This probably isn't what you wanted to hear - just my opinion (I love FNMA as a daytrading vehicle).