What is your opinion on Fannie Mae Stock?

4 Comments

1. Jeremy S says:

   February 22, 2010 at 5:45 pm

   I am in the same boat as you. I bought 1000 shares awhile back when it was like .47 cents. I am tempted to buy more, but I think it is best to hold. It may go up a little bit yet, but if you buy today at a buck, it will definitely be more of a risk. If you paid what I paid, then you can laugh all the way to the bank. We may not be high rollers, but doubling your money any time is always nice ;0)
2. financegal27 says:

   February 22, 2010 at 5:45 pm

   I’ll give you the same answer I gave the guy who asked about Freddie Mac. Freddie Mac and Fannie Mae are quasi government agencies to begin with so unlike firms like AIG they always had government involvement. In September of 2008 the agency, along with Freddie Mac, were placed in conservatorship and now are almost 100% controlled by the U.S. Treasury with full government involvement in the business. Unlike AIG or Citigroup, its not a matter of them simply paying back the amount borrowed, they are no longer required to maintain certain capital ratios and are being used by the government as a way to establish and undertake policy changes. As a rule the government is very good at spending money but not very good at running a financially sound or profitable enterprise, as a result I wouldn’t touch the stock with a ten foot pole. The is no evidence that either firm will be removed from government conservatorship anytime soon.
3. vampirefromoldcountry says:

   February 22, 2010 at 5:45 pm

   Bernake is going to do away with current shares of freddie mac and fannie mae sometime later this year probably in November.
4. brad says:

   February 22, 2010 at 5:45 pm

   I’d hold if you already own. They had a big % runup today and I don’t think it will hold. If you’re in profit already? Try to place a tight stop order to lock in profit. Buy back if it drops again.