Benj Gallander
Fannie Mae
FNMA-OTC
COMMENT
Jan 08, 2014
Followed this for years and is on his watch list. In the last 2-3 years, the chart shows a period where it was at $0.30 where it stayed for a long time. Thinks there was a tremendous overreaction by the government because of a lot of problems. Through their history, they have really helped a lot of people buy houses.
Fannie Mae (FNM-N) and Freddie Mac (FRE-N) were mainstays of the US economy but are now penny stocks. Were touted as prime blue chips for years. If you want a high risk, this could be a place to do it. Feels the risk is far less than it was before because US government has not completely moved in. Tremendous upside over time.
Fannie Mae (FNM-N) and Freddie Mac (FRE-N) could fade into obscurity but he doesn't think this will happen. US government will do whatever it takes to backstop them. Good for a short-term trade but wouldn't bank on it for the long-term.
Very interesting contrarian play. Government seems to like to destroy things that have worked for a long time. At a certain point in time, they don’t work as well but the question is, what are they going to replace them with. You have to steel yourself to deal with companies like this.
Followed this for years and is on his watch list. In the last 2-3 years, the chart shows a period where it was at $0.30 where it stayed for a long time. Thinks there was a tremendous overreaction by the government because of a lot of problems. Through their history, they have really helped a lot of people buy houses.