FNMAS trade ideas
$FNMA/$FMCC Riding On Momentum From 2 Catalysts;Long Road AheadBoth Fannie Mae ( FNMA ) and Freddie Mac ( FMCC ) are rocking and rolling. Mnuchin's interview paired with the court of appeals' move against the Gov't have sparked more interest here. This is great and another potential catalyst today could add fuel to the fire.
HOWEVER, is there a motion likely before the election? I think the jury is still out on that front. We've got the election year to think about as well. My guess is short term momentum and hopefully, it retraces back to a higher support than its previous resistance range.
" So, are FMCC stock and FNMA stock penny stocks to buy or should you avoid them like the plague? In my opinion, there still needs to be some diligence had right now and don’t throw caution to the wind either...Should a Democrat beat the current incumbent, this whole “to do” may be scrapped entirely. Even though things are exciting now, make sure to keep tabs on the underlying risks and learn how to manage should those materialize...At the end of the day, if an overhaul does happen, Congress will lead negotiations. All these points mentioned would be up for discussion. Some of the more conservative ideas would most likely get taken out of the running. So, keep in mind that there are many unknowns, still. The fact of the matter is that these two penny stocks will remain under close scrutiny for the foreseeable future; this week being the next potential milestone to keep an eye on. "
Source - The Best Penny Stocks To Buy This Month? FMCC & FNMA
Does FNMA Have Enough juice To Keep Going?At this point FNMA might not be all speculation.
"This latest plan is to return the two back to private hands. But as part of the plan, there would be a Treasury backstop in place. But this hasn’t come without pushback. Senate Banking Committee Senator Sherrod Brown has issues with this plan. The concern stems from possible risks that could arise by giving up control." - PennyStocks.com, 2 Penny Stocks To Buy Or Avoid This Month: FNMA & FMCC
I think the government angle is something to pay attention to right now, personally. The closer a decision comes, the less "technical" and the more "headline" risk will play a factor.
FNMAS Finally Making MOVES After Positive NewsIt looks like with recent court hearings and news, FNMAS preferred share holders and investors in general have a positive expectation going forward.
Keep in mind we except the stock to jump back to value price of $25 MINIMUM once court proceedings with the federal government concluded.
As of now, I see this going to 8$ range- and from there FOMO could start kicking in. Play it safe. We waited years for this. Just 5 Months to go.
LONG IT. 50% POSITION OF ENTIRE PORTFOLIO RECOMMENDED.
FNMA - Could break out in the next 30 daysAbout a week ago FHFA announced the GSE's (Fannie and Freddie) will be allowed to retain their capital. This is a vital step if the twin GSEs are ever to be released from their conservatorship. Fannie and Freddie together account for something like 80% of the US mortgage market and every day MBS pools are bought/sold. The great thing about MBS is they have treasury like risk but higher yields.
Prior to the 2008 crash, Fannie was trading at something like $56/share.
Currently the government owns 80% of Fannie and Freddie and in November 2012 they retroactively amended the terms of the bail out agreement to redirect 100% of all profits to the government and 0% to the 20% public shareholders.
Obvious theft. What happened was in 2012 mortgage and housing started coming back STRONG and it was plain as day obvious to everyone Fannie and Freddie would soon be able to pay back their loans and exit conservatorship.
The Obama administration had other ideas though. To them, confiscating 100% of all profits was a way of securing $200+ billion a year in revenue without "raising taxes". It just meant confiscation instead. (What's the difference then?) So far, the republicans don't seem too eager to give up this revenue stream either. Makes one wonder how far they're willing to go... because I think we already know.
The irony is another amend to the agreement was none of these payments went towards actually paying down the loans.
By Feb 2014 Fannie and Freddie had paid back all of their tax payer loans and then some. For the past (nearly) 4 years now, all profits have continued to flow into the U.S. Treasury.
Fannie and Freddie borrowed $187 billion and and have paid back $271 billion yet still "owe" $187 billion. The government it would seem is the ultimately loan shark.
If you don't love your government, change it.
