why is it so cheap?
Its largely due to the fact that nearly all profits are confiscated by the Treasury with virtually none left over for shareholders. Why would I bother to invest long term in a company that has no money for shareholders?
Trading this is fine, but for the long run, I would stick to companies that actually reward their shareholders. Also stay away from companies that are under complete government control.
There aren't any billions of dollars being made. it's just an accounting procedure. FNMA actually borrowed the money from the government in one set of books at very low rates and gave it to them on another set of books. Don't fall for this easy money to be made #$%$. The conservatorship will end soon and so will FNMA.
first they were delisted taken over by the feds under conservatorship and went five years in the red....instead of just loaning the money and let management do what they need to do shareholders would not have to take such a drastic hit in the wallet..imo