Fnm Fre

Discussion in 'Stocks' started by Daal, Jul 23, 2008.

  1. SteveD

    SteveD

    I don't understand why people are still short these stocks....

    If you have been short since $30, take your profit and move on...your additional profit is fixed at $4.50/share for FNM????


    Take your profit and move on....


    SteveD
     
    #61     Aug 21, 2008
  2. m22au

    m22au

    I agree that there are some good reasons why the stocks may not go to zero.

    However assuming a significant capital raising ($10b plus), then the stocks may be under $1 - especially FRE.

     
    #62     Aug 21, 2008
  3. GTS

    GTS

    Yea, it would seem that at these price levels shorts have a lot more to lose than longs. It wouldn't take much to cause a spike up (albeit temporary)....a carefully worded PR or perhaps even a rumor.

    Edit: Both stocks down another 15% already this morning...amazing.
     
    #63     Aug 21, 2008
  4. m22au

    m22au

    Some people shorted at prices lower than $30, and think the stocks are going lower


     
    #64     Aug 21, 2008
  5. rros

    rros

    Jim Rogers said he covered all his financial shorts. Then, he added 'almost all of them'. Looks like some are moving on...
     
    #65     Aug 21, 2008
  6. Cutten

    Cutten

    If the risk/reward from the current price is favourable, why would you not want to make that trade?

    Shorting from $30 to $0 provides exactly the same profit as shorting from $4.50 to $0 - 100%. And of course you can use puts instead.

    The numerical price of a stock is irrelevant - all that matters is the % move.
     
    #66     Aug 21, 2008
  7. GTS

    GTS

    I disagree. Shorting from $1 to $0 produces the same profit as $30 to 0 but the risk of an sudden and large move against you is much worse when you short at $1 (e.g. a sudden move to $3) vs when you short from $30 (a sudden move to $90 is not likely)

    The absolute numbers do matter, especially when you are down in the low single digits.
     
    #67     Aug 21, 2008
  8. There is nothing but risk. The do not have enough money to survive. And the only way the are going to get it is by Gov. takeover. It is the only way to avoid a complete and utter banking and dollar collaspe.

    Treasury will wipe out the common stock and thus it should be. There is no value left and if you are a speculator that can't see the writing on the wall and/or READ A BALANCE SHEET, then that is your problem. Any kind of rescue that would benefit shareholders would be considered morally wrong and meddling with a "free market", treasury wont go there.

    Stock goes to ZERO, the market reflects that. Gov. takeover whithin days.
     
    #68     Aug 21, 2008
  9. GTS

    GTS

    BSC? :confused:
     
    #69     Aug 21, 2008
  10. Daal

    Daal

    but if you wait for that massive rally then you take the risk out of the equation(assuming you are right on the value of the stock)
     
    #70     Aug 21, 2008