FNM (Fannie Mae) tanking big:

FNM Fannie Mae accounting probes turn up new, pervasive problems - DJ (45.70 -1.00) -Update-

 

company specific... all aboard$$


NO FEAR

 

I actually am considering shorting FNM
even if the news is over-rated, I am thinking about the Churchill quote "a lie makes it halfway around the world before the truth has time to put its pants on".

This is also combined with other bad news in the government today (see Tom DeLay scandal, new inflationary signs, et al). I realize those are not directly connected to FNM but sentiment is sentiment, and sometimes it is synergistic.

 

This whole sordid FNM mess is an example of the politically well-connected being allowed to play by different rules. Franklin Raines , the CEO when all this took place, and some of his execs were all allowed to resign and keep their outsized bonuses and humongous retirement packages. The accounting fraud was clearly designed to allow them to make the numbers to trigger their bonuses, as Peter Eavis of TheStreet.com has repeatedly detailed. If there was any justice, they should all be awaiting trial for fraud. Typical of this administration though. They don't have the cojones to prosecute a political hack if he is black.

 

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cap-mac-mae
Wish i could agree with all of Jim Cramers shorts & longs, but cannot;
he hit the sell,sell,sell & dont buy buttons tonight ,FNM,FRE.

Both still look like excellant downtrends;
and unlike a lot of stocks/ETFs
might not have an upward bias end of month.

Not a prediction.

 

Let them cancel all those phoney 5% mortgages they issued to Credit junkies.

 

umm, down a dollar is "tanking big?" you can't possibly be that young.

 

Actually FNM was down much more than a dollar Wednesday - more like $5. So we're talking almost a 12% drop.

Now, I noticed it IS up in pre-market right now, but only by about 99 cents, which is nowhere near the correction needed to call it an uptrend.

Considering its 50-day MA is at about $52, and today it is opening at close to $42.70, it already is the "tanking" category, IMO.

If it drops to $40, I think it is an excellent candidate to short. Some people are talking about this news with the word 'Enron' in the same sentence.

 

i wish i had seen this post yesterday's morning. investigation and drops only a dollar, that is a sure short.

 

Again, it did drop much more than a dollar on Wed Sept 28:



I see now it is trying to rally (it's at $43.17 at the moment). I maintain if it drops below $40, look out for a
TIMBERrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr