Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: cormanman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 274  
Subject: Help Me Understand the Risk of FRE at $0.92 Date: 10/22/2008 12:17 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I would like for someone to explain to me what is the downside of FRE below $2.00? I admit to being inexperienced in investment and I would like some guidance here.

It would seem that there is no way that the government will let Freddie or Fannie completely fail. While clearly the bad mortgages on the books will hinder Freddie's profitability in the near term surely this stock will rise when we begin to emerge from the weakness caused by the housing bubble.

With virtually no chance of going out of business and a stock price currently below $1 it appears to me (a noob) that it is only a matter of time before this stock is back to the $4-8 range. Is there a risk that the shares will be completely devalued? Help me understand how this is a bad buy currently at $0.92.

Any input is sincerely appreciated. Educate me please.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

An Interesting Read
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.