Stockchase Opinions

Matt Barasch Fannie Mae FNMA-OTC DON'T BUY Feb 19, 2004

Prefers Freddie Mac as their accounting issues are behind him. Doesn't know what is in store for Fannie Mae.
$79.880

Stock price when the opinion was issued

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WAIT
We need to see the system a little more liquid before buying.
WEAK BUY
They are contemplating a reverse stock split. Management says there is value there. A real possibility it could survive.
SELL
This is only for the faint of heart. If you own he would recommend you sell as a tax loss.
WEAK BUY
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.
COMMENT
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.
DON'T BUY
Need another $10 billion from the US government. There is no equity in this. Pure speculation.
SELL
Nobody knows what these things are really worth. It's like betting at the casino.
COMMENT

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.

DON'T BUY

They have been recapitalized. There are long term issues with government support for them.

COMMENT

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.