FNMA and LL Stocks

[Moosie]

Besides my IRA/401-K I have some "play investment" money in Etrade I really own 2 stocks in it. FNMA and LL. I've bought and sold FNMA for the last 5 years anywhere from $1 to $4. Anyone that followed the "Government theft" on that stock 11 years ago knows. #FannieGate

LL I picked up earlier this year thinking March would rise, Little did I know it would 1/2 the price again in March. OOPS !! I figured it would take the rest of the year to go up and today it passed where I thought it would go.. Here is a snapshot. I sold half today because i needed some dry powder to pick something else up soon. Figure I'd take today's LL rise or 17%+ and an over all of 66% return it was time to pocket some money.

Just curious is anyone else follows FNMA though ? I'm thinking of liquidating the rest of the LL and rolling the dice. It's either gunna pop before Trump gets Reelected or it's a done stock. I vote the pop. The court cases all but decided that. Tick tock.

 

[SAJ-99]

I don't have much an opinion on either. I will say that investors (and potential investors) in FNMA are waiting on the announcement of a recapitalization plan post conservatorship. Levering $ trillions in Mortgages at the risk free rate is a better profit machine than having to lever it at private credit market prices. What that looks like changes how investors will analyze the company. Pre 2008, most of them were considered quasi-government organizations (but I am not going to touch your Government Theft comment ) and that may continue in the new plan. I doubt that much has changed much after Covid-19 pandemic when the government gave all large industries handouts to help them survive. I don't think any of this depends on who wins in November. Basically, FNMA stock is an option at this point. It may go to $4 or $6 or $8 if investors like the plan. Or it may be worth $1. You just have to wait. Because the conversation on FNMA has been going on for 8-9yrs, you have to be VERY patient.

 

[jabber]

What's this FNMA you speak of? I have a red 54% beside mine. Pop would be nice

 

[Moosie]

@SAJ-99 , YAh, It's a patience game all right...... Me and @jabber could be Bag Holders on this but the courts keep ruling the the favor of releasing.... the talks and Teasing keeps surfacing...... It used to surge then drop with news.... Now it just sits . I might influx a little more because it it gets released, your $4, $6, and $8 numbers are way Low I'd say. Frustration at it's finest. thanks for your Insight !!

As far as LL,Looks like it kept going up, I'm OK with getting out when I did though with 1/2 and letting the rest ride a few years.

 

[Moosie]

Kind of Bummed I sold 1/2 my LL stocks...... $23.12 today. Considering in April it was $4. I was in at $9.41 end of Feb.