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.
I think the market is totally too pesimistic right now. I expect a long wait for it to get into the $4 to $8 range only when the government releases the conservatorship and moves back to shareholders again.
I bought 104 shares Thursday and planning on buying more Monday. I see more upside potential than downside risk.
PLEASE UNDERSTAND I AM NOT A SEASONED INVESTOR. THAT BEING SAID I HAVE A FIRM BELIEF TO RESTORE CONFIDENCE IN OUR HOUSING PROBLEMS IT MUST START WITH THE REINSTATEMENT OF FREDDIE AND FRANNIE. IN MY OPINION, WITHOUT THAT IN PLACE NO ONE WILL RETURN TO THESE TWO. ALL THAT SAID I HAVE BETWEEN BUYING SINCE IT WAS @ 1.30 AND WILL CONTINUE UNTIL IT TURNS. I BELIEVE FREDDIE AND FANNIE WILL BE MADE WHOLE AND RESPECTABLE AGAIN.
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