FNM and FRE Two Very Popular Trades
September 3, 2009 by Banker
Filed under Stock Market Tips
Recently the stocks for Fannie Mae and Freddie Mac have become some of the most popular trades on the stock exchange. With incredible recent gains it is no surprise that a lot of first time investors are trying to get involved. It is no secret that we are in the middle of a recession, the only question is when it will end and how fast the upswing will be.
| FNM | FANNIE MAE | 1.62 3:49PM ET |
Many people are more familiar with Fannie Mae and that seems to be one of the driving forces behind the investing, with the government having bailed out the company, many investors feel that the risk has been limited, and at current value Fannie Mae is a real value.
Fannie Mae did experience some early loses during the first couple days of September, and many analyst are claiming there is no real value left in the company. With Fannie Mae having risen to over $2.00 a share last week and then closing at only $1.37 on September 2nd, Fannie Mae was headed for a rebound.
That is what happened today, Fannie Mae already had a volume of 9.5 million shares at 9:30 AM EST, and a quick increase of 13% making FNM one of the hottest day trades on September 3rd, And all of this took place early in the morning, with big increases to continue throughout the day.
Buying Fannie Mae Stock First
September 2, 2009 by Banker
Filed under Investing Journal
Fannie Mae stock has been a hot topic lately, and with so many watching this stock, I felt it was about time to get involved myself. Earlier in the week, I had purchased $1,000 in Fannie Mae, for a total of 575 shares. The start of the month does look good for Fannie Mae as the Mortgage Bankers Association called for Congress to make a big change for the major mortgage lenders Freddie Mac and Fannie Mae, requesting that the government controlled mortgage lenders be divided into several smaller privately-held companies.
This news sent shocks through a lot of the day trader communities, and many quickly began dumping their shares… I was not one of them. I am not trying to work as a day trader, but I am looking for safe places to put money while the economy recovers. To me, it seemed like the largest mortgage lender in the nation might be one of those places.
The purpose of my investing is not to find a place to have slow gains and stability, my goal is to find volatile companies that are likely to increase and increase greatly. With this style of investing comes a much greater risk, and thats more or less what we got to see this week.
The news from congress, coupled with the irrationality of the day traders, drove FNM all the way down to $1.40 and reduced my holdings to $787.75 from$1000, not a great start to the journal… but thats how it is sometimes. The goal is to hold at this point, and see where the market is headed. With the recent gains and huge volume that has gone into Fannie Mae, the volatility has increased.
Total Invested – $1000.00
Ending Total Portfolio Value – $787.75
9/2/2009
New Car Prices – 2009 models costing less the 2008
April 13, 2009 by Banker
Filed under Investment Notes
With the auto industry facing some of the hadest times in decades… maybe ever. The prices on the new 2009 models have been slashed! It seems many of the 2009 models are cheaper than even some of the existing 2008 models. Not to mention all of the incentives that are being offered by the failing auto industry, it seems 2009 and 2010 may be the last effort for some of the auto giants to establish if they will stay in business, or sell to another international car distributor.
Even with all of the price cuts and incentives being offered, the auto makers are just unable to keep up with the deals being offered in the classifieds. Many used cars are going for thousands of dollars less then their blue book value, and the secondary car market is exploding with amazing offers. A great example of this is all of the 6 figure cars, with high end names such as Ferrari, Lamborghini, and Bentley, selling for 1/2 of their “Car Lot” value.
Those not being too badly hurt by the recent economic slump are capable of purchasing used cars, with a higher buying power than has been seen in decades. Begs the question if these same cars will hit the market in a couple of years when the economy turns around for their fair 6 figure value. Many times the only reason these cars are sold so far under value is market hype…
The 2009 model cars are great, but there has never been a better time to pick up that classic you have always wanted, and if your looking at this purchase as an investment then your money will be best spent on an oldie but goodie… Look for a collector sizing down his collection or anyone selling 30% or more below blue book value.