Friday, June 18, 2010

Climateer Line of the Day: Fannie and Freddie Edition (FNM; FRE)

It's been a Fannie day so I might as well be consistent. [hobgoblin -ed]
From the Wall Street Journal's Developments blog:
Delisting Fannie, Freddie: Clearing the Path for Change
...The big issue now is what happens to the companies moving forward, and Wednesday’s delisting helps clear the pathway a bit towards doing something completely new as opposed to taking steps to restore the value of the current companies.
And it’s also a sign that the common shareholders “don’t play a role in that future structure,” says Bose George, an analyst at Keefe, Bruyette & Woods Inc.
The Google link to MarketWatch says:
Housing stocks roughed up in week
And as we said on Wednesday
Fannie is down 37.28% at $0.58, Freddie is down 39.34% at $0.74.
If you can borrow the shares there is still an opportunity for a 100% profit.
By the way smartass, I know the quote:

  A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines.