Fannie Mae-No Politics (FNMA)

[Bouray00]

I asked myself that same question over and over after missing the $5 exit. I came to the conclusion that this stock is a long term investment. In 2007, Fannie posted a couple of quarters with .50 dividends, although it looks like the average dividend was in the .30 range.

The way I look at it is through greed. Not short term greed, but long term. I have 45k shares bought at $1.53. If the pps goes up as it has in the past, I do not think it will fall back again. That quick trip to $5 and back was a one time deal. The next should be the real thing. By that I mean there will not be a dramatic drop back down. Sure there will be profit takers that knock the price back some. And maybe that is the correct strategy, to get out your initial investment and then just play on house money. But I think Fannie will climb back to book value and start to pay dividends to common stockholders once again. That is your long term gold, dividends.