Fannie Mae (FNM)

Fannie Mae's stock price has fallen so dramatically in the last week because of a combination of factors -- shorting by Wall Street hedge funds, a general downturn in the mortgage market, some ill advised comments by a public official, and rampant rumor and speculation cultivated around the firm by the media.

Fannie Mae is adequately capitalized. Defaults comprise <1% of it's total book, even in the current market. It continues to have the backing of the government.

The stock is undervalued. Buy it now, hold, and in a year or two, you will have made an enormous return.

The stock is dirt cheap and the government will not let them go under. If you have time to sit on the stock, I'd bet you will make out very well.

China is watching the events closely because some 10 percent of China's gross domestic product is invested with the troubled mortgage giants. NPR's Adam Davidson talks with host Jacki Lyden about China's stake in the U.S. mortgage industry.Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe. The gov will not let this fail, and at the current price, you can't go wrong. This stock is highly undervalued.

http://www.npr.org/templates/story/story.php?storyId=94369826&ft=1&f=1001

Clear Skies Ahead: The collapse of the subprime market, along with rising interset rates, have cut into home sales, but because of its refusal to dip into variable rate mortgages, Fannie is well positioned to weather the storm and emerge strong.

Government Sponsored Enterprise: Although there is no guarantee that the government will bail out Fannie in the event of default. Fannie's size and key role in the industry make any collapse costly for the economy as a whole. Moreover Democrat's traditional sympathy towards home-owners, and their support for Fannie improve the of a bail out. The possibility of bail-out represents a diminution of risk: Fannie may be a safer bet than many of its competitors.

Regaurdless of the good or bad news you hear its sooo cheap you cant not buy it. Your % of possible gain is too much for me to pass it up. Its worth lossing 500 to possibly turn it into 5000. Its a once in a lifetime opportunity so dont pass it up.

I Had A Dream Fannie Mae will soar. Its a Good Karma stock. When you buy stock in Coca Cola or McDonalds or Walmart you are purchasing a share of America's destruction. Fannie Mae Loses money when people get foreclosed on. Fannie Mae makes money when people dont and when folks are able to pay their mortgage, therefore Fannie Maes success is tied to something good rather than something evil. I know this isnt Wall Street talk but its a a good point i think.

With US Government backing on this mortgage gaint, it worst time had been passed away. By measurement from its historical performance, it's just remained 3% (US$1.92 to exceeding US$70 per share) when compared to its highest market value. A high percentage of increased will be seen in the following months once economic recovery has been proven.