FNM didnt start going parabolic till it hit $20 in 1995 ( just after the housing correction. - i remember cause my brothers had a few rental properties that the bought in 1993 and were #$%$ in 1994 that the house was worth less than they paif for it... however this is not to say they were underwater, for back then you still have to put a sizable down payment, not like the 3.5% today..lol) but i digress...
So I figure the real mainia will come at $20. If we dont go back to the pennies of course.
FNM went up 400% in 5 years ( 1995-1999) ( $15 - $71)
I'll be long gone and retired way before then. IMO we top out around $30. I want options on this sucker if it rises form the aches. $20k in leap OOFMC will make ya rich.
But why? Congratulations on the run, I hope you have 100K shares or more and made huge today. But isn't the equity canceled? I would love to ride this to $10 or $20 but it seems like there's no fundamentals in place for the rise? What is the book value, are they making profits, is it not true the equity is wiped out and creditors own the company?
Currently, all profits are paid to the government as dividends. However, Fannie Mae has issued a possibility of a course to pay off their debt. Where does that leave us? That is the question. As it stands now, this has zero actual value. But, investment is based on one's speculation of the future based on current goings-on. This is not a fundamentals play at the moment. This entire situation is fairly unprecedented. Unprecedented in many ways, I believe. If anything, this saga will be interesting as it unfolds.