Replies to post #194002 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

It hasnt been below 1$ for a long time. Do you not think people may have earned more money to invest with between then and now?

[crawford2012]

IMHO the answer is No, because the truth is no one was really paying attention...many thought FNMA & FMCC needed more time to become profitable and were not expecting to see them pay their dues this fast and in full with a cheery on top...but now with so many indicators that the companies have been reformed internally and are delivering results....everyone want a piece of the pie at the lowest price they can get.

Look at the timing...news comes out...truth is nothing new...but it was enough to cause panic...some will take advantage of this to manipulate to make money and get more shares.

If you recall from reading articles published by those that own large chunks of share in these companies...they need to keep the price up so there is no excuse from allowing them to move to the big boards and for all you know...here is a bill that had to come out...even if it yields nothing...it will serve the purpose of dropping the PPS below what is required to allow FNMA & FMCC to trade on the big boards...

There is so much going on behind the scene...its mind boggling...this is why we need to keep our ears to the ground so we keep piecing the puzzle together to see the big picture.

I hope this helps, please remember that this is only my opinion, we all can perecive things in a different way.

Also see article below.
GLTY & All.
Crawford!

Hedge fund managers appear unconcerned about the sharp price drops of Fannie Mae and Freddie Mac stock this week and remain committed to what could be one of the most lucrative buy-cheap, sell-high investments since the financial crisis.


Common shares of the two companies declined as much as 30 percent this week after the Senate Banking Committee announced an agreement Tuesday on legislation to wind down and eliminate the government-sponsored mortgage backers in favor of a reorganized Federal Mortgage Insurance Corp.

The proposal would see private investors taking the first 10 percent of losses. Preferred shares, which theoretically would be paid first in a liquidation, also fell—albeit not as sharply.

A slew of commentary followed from politicians, analysts, consumer advocates and others on the plan and its value. But a small group of hedge and mutual funds is ignoring the chatter and paper losses in hopes of a much bigger payday.