ilovedolphins
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Post by ilovedolphins on Nov 27, 2012 19:10:59 GMT -5
I was just looking through some stock quotes and wondered what happened to Fannie Mae to make their price go down to 27 cents. I haven't kept up on financials so I am wondering is this a good buy?
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Virgil Showlion
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[b]leones potest resistere[/b]
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Post by Virgil Showlion on Nov 27, 2012 19:25:26 GMT -5
I was just looking through some stock quotes and wondered what happened to Fannie Mae to make their price go down to 27 cents. I haven't kept up on financials so I am wondering is this a good buy? You won't find massive amounts of debt for sale cheaper anywhere else.  You'll forgive my cynicism. |
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ilovedolphins
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Post by ilovedolphins on Nov 27, 2012 19:27:23 GMT -5
I couldn't figure out what the problem was when back in 2008 their price was high.
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The Captain
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Post by The Captain on Nov 27, 2012 19:31:31 GMT -5
The only thing keeping Fannie Mae afloat right now is the fact that is has all the power and support of uncle sam behind it (google government sponsored organization) which will have to run out eventually. Stock holders will be left holding the bag just like GM. I wouldn't touch it with a ten foot pole.
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Virgil Showlion
Distinguished Associate
Moderator
[b]leones potest resistere[/b]
Joined: Dec 20, 2010 15:19:33 GMT -5
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Post by Virgil Showlion on Nov 27, 2012 19:34:53 GMT -5
Bloomberg put out a positive report on FNMA in May. Obviously whether or not to buy depends on where you think the recovery in general is going to go from 2012 forward. I'm not going to recommend it one way or another since at 27 cents a share you're going to lose your shirt if the market moves against you. Some others on IBB may have their own feelings about where it's headed.
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ilovedolphins
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Joined: Jan 31, 2011 10:56:31 GMT -5
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Post by ilovedolphins on Nov 27, 2012 19:35:16 GMT -5
Thanks for the advice. I will definitely stay away from it. I have been trying to find some low price dividend paying stocks for my son who only has between $50 and $100 to invest each month. I just came across Fannie Mae because it was in a list for customers top stock picks at Sharebuilders.
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