Freddie, Fannie Facing Facts
Source: http://www.zacks.com/stock/news/14368/Freddie%2C+Fannie+Facing+FactsPosted on Friday, August 22nd, 2008 | In Stocks to Watch
More talk about a U.S. government bailout for Fannie Mae (FNM) and Freddie Mac (FRE) today spells doom for shareholders of the government-sponsored enterprises (GSEs). Fannie shares are down 6.6% near mid-day trading, while Freddie is down nearly 15%. Then again, who besides day-traders are getting within a ten-foot pole of either holding these days?
Perhaps this lends perspective to the fact that speculative Lehman buyout news today has generated bullishness in today’s market, whereas the FNM and FRE gloominess hasn’t put the same pressure on stocks downward. Both stocks are at Zacks Rank #4 (Sell).
Fannie Mae’s last two quarters had posted earnings surprises of -229% (June) and -414% (March). Freddie Mac recently had 5 analysts downwardly revise earnings estimates for the September quarter in the last month, and 6 for fiscal years 2008 and 2009. Avoid like the plague.
“FNM” Free Stock Analysis: Buy? Sell? Hold?
“FRE” Free Stock Analysis: Buy? Sell? Hold?
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Fannie Facing Facts, Fannie Mae, Freddie Mac, Lehman, Plague, Stocks to Watch, United States, Us Government
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