FNM, FRE a buy now?

Discussion in 'Stocks' started by blnbr, Sep 14, 2008.

  1. Adobian

    Adobian

    Nice job.

    AIG lost 1.50 to 3 something today. FRE and FNM should do the same pattern.
     
    #11     Sep 24, 2008
  2. rros

    rros

    Not the same stocks. AIG is in a dire situation having to pay colossal amounts of cash in the coming year and being forced to reduce its size to minimum.
     
    #12     Sep 24, 2008
  3. m22au

    m22au

    I agree that they are not the same.

    AIG is in a dire situation where it is receiving a loan at a significantly high interest rate, and must sell assets quickly at firesale prices in order to reduce the amounts payable to the Government.

    FRE and FNM are insolvent institutions with rapidly deteriorating balance sheets, leveraged at ridiculous multiples that make Lehman Brothers look like a well run company.



     
    #13     Sep 24, 2008
  4. blnbr

    blnbr

    bot 0.94 and sold 1.19, now 1.90 ooops!

    Kicking myself in the ass :mad: :mad:
     
    #14     Sep 24, 2008
  5. 2ez

    2ez


    Up to $2.05 in After Hours.


    Freakin Cramer just said to sell into the spike after the Bailout is announced. This thing has been up 40% for the last couple of days.
     
    #15     Sep 24, 2008
  6. S2007S

    S2007S


    Agree, I sold out of FRE with a huge return but didnt want to risk losing half of it in a single day if FRE decides to sell off like AIG has, I think FRE is headed back below $1.00 where I would be buying again. I think tomorrow it could come down below $1.50, its overbought in my opinion.
     
    #16     Sep 24, 2008
  7. i will go with cramer on this one, wait for the spike after the bailout then go short...errr puts.
     
    #17     Sep 24, 2008
  8. Adobian

    Adobian

    Cramer has been right in the last few days.
     
    #18     Sep 24, 2008
  9. blnbr

    blnbr

    Seriously, everyone should keep their trading size small on these highly speculative / volatile issues. And never bet with any money you can’t afford to lose.

    Good trading :)
     
    #19     Sep 24, 2008
  10. christ this thing is up another 50%. I would got in on some puts now but the premium is insane on them. Guess i will wait for a final pop to ~$3.5 before getting some 2.5 puts.

    pure insanity.
     
    #20     Sep 25, 2008