FNMA Pure Technicals from a bag holder's perspective
If you bought FNMA under $1, you have no reason to sell, why?
1. FNMA is backed by the government, they are not gonna go bankrupt.
2. Government changed the term for dividend payment to only require FNMA to pay them dividend if they make profits, and they have been making billions of profits, the old term was that they have to pay government dividend even if they are losing money, they would have to borrow more money from the government to pay the dividend, which is very harsh when the government is suppose to be there to help them, so the new term is much more reasonable.
3. Accounting changes would allow them to pay most of it's debt back to the government, i don't know the details but that's what I heard.
4. FNMA has only 1.2b in common shares, the market capital is very low compare to their actual earnings, of course, that's due to their payments to the government, but the new term will allow them to be debt free and government free sooner than people had originally expected.
I have been holding this bag for 3 years and I bought it for $1.22/share 30,000 shares in quantity, so if you paid less, then you have no reason to sell, at least not until the stock stop moving like a crazy maniac.
You have been holding for three years. That's funny, your handle doesn't ring a bell; would you mind going back an finding a post or two - just for verification. Sometimes these boards are infested with self or other serving barkers (long and short) and I care not to communicate with them. But I digress on my point. What I wanted to say was that: rather then concentrate on the continued existence of the GSE's, promote a grass roots effort to protect the 30 year fixed rate mortgage? The GSE"s were created for this end and any proposed winding down would still need to replicate exactly what we have now - SO WHATS THE POINT EXCEPT TO STEAL THE COMPANY FROM THE SHAREHOLDERS AND GIVE IT TO SOMEONE ELSE?
GM had bonds and the GSE's do not. The Feds have a debt to pay the shareholders for the extremely abusive treatment we have received when compared to the other bailouts like AIG and the Banks that got us into this mess after all. Pump the people to contact their congressmen because the GSE's can't lobby them directly - THAT'S THE MAIN PROBLEM - The GSE's need their lobbyists back .
But, I suppose there are other ways to do this, maybe the ex lobbyists can do it pro bono??