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1 point   posted on 12/08/08
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Current sentiment


So it seems to me the up sentiment is on low volume and the downward movement is on high volume. I think (guess) that lots of mutual funds must move the stock out of their portfolios short term for end of the year window dressing over the next few weeks to report rhe shares under the radar in the prospectus. they then will pile back in after the first of the year. As the old saying goes, ya pays your money, ya take your chances. I think this one has real legs after the first of the year. Look at it this way, you are now in business with a large corporation that has cash flow from the majority owners other business ventures (ie. tax revenues to fund the bond sales). the US Goveernment is essentiall y an investment banker - selling bonds and your business partner in this now solvent way to play the housing market. I like this one a lot. In five years it will be $20 per share - sorry for those who owned it at $100 a few years back. simply put - the risk was socialized(you lose if it goes down as a shareholder ) the reward was privatized to the insiders and investment bankers. Now it is a new game and the govt. is your partner. If this one doesn't go - you need a potato farm in Idaho because the US will have neither full faith nor credit. How bad can it be? We have an 79% owner (the US government) as a partner that refuses to let the business fail. In 12 years when the Republicans return to power the govt. will divest its interest. One million shares of this one at $0.40 looks about right. Keep your powder dry. I think I will troll for a marlin. Baja is beautiful - after the touristas leave. - just like the market- the occasional investors and pensioners are gone - time to get in...

  Related to:  
FNM Fannie Mae


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alephandtao   84%     1 point   commented 346 days ago reply

The bears have mostly packed and left. I don't see this rally having a lot of staying power, although it may take the next crisis to stall it.


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