Replies to post #8164 on Fannie Mae Preferred S (FNMAS)

[loobeyondbm]

Sold FNMA, Bought FNMAS/FMCKJ

I think the preferreds are undervalued compared to commons now. Sold all but 5000 shares of FNMA in my account. Left the 5000 shares just for fun and I may hold it for next 10 years. I believe the preferreds were held down due to the negotiations of large block transactions (see volume of FMCKJ in last several days). On the other hand, FNMA investors are more retails/traders and they fall for the unbelievable momentum.

What a contrast to early April when FNMAS went up 50% but FNMA goes down almost 30%! LOL. The rotation will happen again but in the opposite direction, IMHO.