I think we'll test last week's high again this week. Why? A whopping $2.5 BILLION investment, even-though it is the preferred, is 5 times previous $500 million reported and seems to me big money and hedge funds are piling on and for good reason: FNMA is the largest company in the world and just had the largest Q profits of any company in the world and in less about a year's time has already paid government $97 billion of $170 billion it was given.
Folks; these are huge numbers which is not reflected in stock price of 2 bucks and half.
Government will never honor preferred without doing the same for the commons. It just does not happen that way. And all the fuss about legislature to abolish Fannie is bs that will not get further than front door of those sponsoring it.
I simply wished I had more funds to plunge into this. Even at $10/share the cap would still be less than net profit of this last single Q. This stock is worth $100/share pr more.
Very well articulated. I agree with your points precisely. I am in the process of selling my house and an investment property. When these funds are available in about a month, guess where I plan to invest? Exactly. In the near term though, big money is controlling the movement of this stock. If it goes up without taking a breather, it will come crashing down like it did last week. Slower (little slower) upward movement is best. GL