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Thinking about buying Fannie Mae Stock!

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RSW

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Feb 18, 2002
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Certified Residential Appraiser
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Tennessee
I've been watching the stock market like everyone else and I believe it is a good time to buy. Fannie Mae stock was down to 0.85 cents per share on Friday and is at $1.08 per share now. I am setting up my account with Scott Trade on Monday. I am thinking about buying 2,000 shares of Fannie Mae stock. What do you think?
 

Randolph Kinney

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With so many stocks with very high paying dividend yield with real businesses, why speculate on something that will need additional bail out money that will wipe out the little remaining equity? :shrug:
 

Terrel L. Shields

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Arkansas
I guess that for a good speculative strategy I might personally buy Fannie, Freddy, GM, Ford, and a few other "penny" stocks that used to be high flyers. Some -particularly Ford - are likely to go bankrupt and lose it all. But it would be really bad luck if all of them went bankrupt and your stock become worthless. Can't say it wouldn't happen but seems if it got to that point, your money wouldn't be worth much anyway.
 

Austin

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I live in a former textile town where Dan River Mills was located. Some years ago the stock was selling at around $15/share. Troubles set in and the things got so bad they declared bankruptcy and they reorganized. The stock dropped down to 1 cent per share. In the mindset of this area to believe that there could be no Dan River Mills was almost like saying there is no God; it couldn't be possible.

I figured hey! This company has been around over 100 years and there is just no way it is going belly up. I decided to buy $1,000 dollars worth or 100,000 shares. Hell if it went up to a $1/share look at the money I would have made. I knew one local man that made over $500,000 in the prior two years when they rigged the market trying to save the company. I called the broker and his advice was-keep your $1,000 because it ain't worth 1 cent. He was correct. They sold it to a company from India, they moved all of the manufacturing to India and low and behold they bankrupted within two years. This was back when things were good.

The point of the story is-Don't think it can't happen because it sure as hell can. In times like these my advice is if it is weak let it die. I went for my morning walk one day last week. There was a bird sitting in the drive way just looking around. I looked at the little bird and said-fly away little bird. I walked my lap and came back to the bird and it was dead as a doornail. It is a sign of the times.
 

Workbox

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Colorado
It's hard to say RSW, at this point we have been dead Right about everything we have been predicting of this American Drama though our eyes as appraisers. If you are going to buy, I do not think it will be any different than playing at the casinos or at the Lotto. But most times when we/some do play the casino or lotto, usually it is crazy money that you/we can afford to play with and would have minimal impact in your overall economic purse.
 

TJSum

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Maryland
It's hard to say RSW, at this point we have been dead Right about everything we have been predicting of this American Drama though our eyes as appraisers. If you are going to buy, I do not think it will be any different than playing at the casinos or at the Lotto. But most times when we/some do play the casino or lotto, usually it is crazy money that you/we can afford to play with and would have minimal impact in your overall economic purse.

Bingo, use your "play" money for something like this. Just a note, Fannie and Freddie are both around double what their actual bottoms were several weeks back, so you already missed out on that. :(

My thought would be if you wish to play these penny stocks, set a sell signal for when it doubles in value, for half the shares you purchase. This way you can take your money off the table, and ride the long haul with the house money.
 

PropertyEconomics

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New Mexico
The time to purchase was when it hit $0.25 and then went to $2.80 per share. THAT was a handsome profit.
 

RSW

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Feb 18, 2002
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Tennessee
PE,

I know what you mean. I was so busy that I didn't even think about buying then. I like the idea of setting a sell signal. I don't mind investing a couple thousand dollars right now. It would not hurt us financially if we lost it. I have missed on several good investments and I don't want to miss on this go round. I'm going to invest in something in the next few days. Just don't know what yet. Fannie Mae is on the top of my list right now.
 

Mr Rex

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I'm thinking about AIG stock. They went from A++ or AA+ to being propped up by the Gov't. How many A's & +'s does a Gov't guarantee warrant?:unsure:
 

Caterina Platt

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Jan 17, 2002
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Certified Residential Appraiser
State
New Mexico
I'm thinking about AIG stock. They went from A++ or AA+ to being propped up by the Gov't. How many A's & +'s does a Gov't guarantee warrant?:unsure:

It depends on who did the last 'appraisal'. :rof:
 
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