Forum: Financial Investment Forum. - This forum is for financial topics only. Please adhere to forum rules. Violators will be banned from this forum and possibly the entire site.

Thread: Fannie Mae & Freddie Mac - Your Ticket to Fortune (and possibly Fame)

Page 1 of 6 123456 LastLast
  1. #1 Fannie Mae & Freddie Mac - Your Ticket to Fortune (and possibly Fame) 
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    [returns to sounds of cheering]

    Been a while. Guess I'm back by popular demand. Hope everyone is having fun in this volatile market, lots of trading opportunities. I'll keep this fairly short and will try to provide additional information in subsequent posts. Consider this your Golden Ticket. I present to you: #FANNIEGATE
    ________________________________________________________________________________________________________

    Fannie Mae and Freddie Mac (commonly referred to as the GSEs) were put into Conservatorship in 2008. At the time, they had the highest amount of capital in history and they were also at their most profitable point in history. That should sound a few alarms right off the bat. But, let's take a quick look at what happened during the mortgage crisis. PLMBS is what caused the mortgage crisis, PLMBS sold by TBTF Banks, not F&F.

    Even with the sudden rise in foreclosures, F&F were in a great position to weather the storm for the foreseeable future and beyond. In fact, F&F had a very low foreclosure rate, especially compared to the TBTF Banks. In 2008, the Treasury decided they were going to cripple the GSEs -- and help their TBTF Bank buddies -- by pushing all their PLMBS garbage onto F&F. As you can imagine, this wasn't a good scenario for F&F. But the CONservatorship took root and the Treasury placed the FHFA in charge of F&F.

    The FHFA committed accounting fraud. There's no easy way to show this unless you're a CPA (then you can see for yourself by looking over their financial statements from 2008-2012). Basically, the FHFA decided to lose $200B for F&F since they were put in charge of their accounting and every day operations. Low and behold, they decided to find that $200B ~4 years later and then decided that they were going to steal F&F's profits in perpetuity indefinitely (yay, awesome!).

    Well, I can tell you folks that if you want to make some serious cash in the next 3-9 months, then you need to get out there and buy the PREFERRED SHARES of Fannie and Freddie (I'm including the full list below, minus the low-yielding ones). These stocks have an up-side of roughly 600-900% on average, not to mention they are currently trading at a price point where you can get roughly 40% of your investment back in a yearly dividend (assuming they get reinstated soon, which I highly believe to be the case).


    I recommend the high-yielding shares -- My primary holdings are FNMFN, FNMAK, FMCCT, FMCCP, FMCCK, and FMCKP. There are a lot of options, so go with what you feel is best. All I can say is, if you're not heavily invested in Fannie & Freddie Preferred shares in the coming weeks, you're going to look back and say, "God d@mnit, that kuwlness was right and I could've made a fortune."


    FANNIE:
    ----------- Par Value @ % Yield (Yearly Dividend)
    FNMAH -- $25 @ 4.50% (1.125)
    FNMAI -- $25 @ 6.75% (1.6875)
    FNMAJ -- $25 @ 7.63% (1.9075)
    FNMAS -- $25 @ 7.75% (1.9375)

    FNMAL -- $50 @ 4.75% (2.375)
    FNMFM -- $50 @ 5.10% (2.55)
    FNMAN -- $50 @ 5.13% (2.565)
    FNMAT -- $25 @ 8.25% (2.0625)

    FREDDIE:
    ----------- Par Value @ % Yield (Yearly Dividend)
    FMCKM -- $25 @ 5.57% (1.3925)
    FMCKN -- $25 @ 5.66% (1.415)
    FMCKO -- $25 @ 5.9% (1.475)
    FMCKL -- $25 @ 6.02% (1.505)
    FMCKI -- $25 @ 6.55% (1.6375)
    FMCKJ -- $25 @ 7.875% (1.9687)

    FMCKK -- $50 @ 5% (2.50)
    FMCCH -- $50 @ 5.10% (2.55)
    FREJP -- $50 @ 5.3% (2.65)
    FMCKP -- $50 @ 5.70% (2.85)
    FMCCK -- $50 @ 5.79% (2.895)
    FMCCO -- $50 @ 5.81% (2.905)
    FMCCP -- $50 @ 6.00% (3.00)
    FMCCT -- $50 @ 6.42% (3.21)


    Join me in restoring Fannie & Freddie and helping keep the dream of home ownership alive in America. Without F&F, their would be no 30-year mortgage and the housing market will quickly deteriorate as capital dries up and the TBTF Banks refuse to offer mortgages to most everyday Americans.

    I've been in these stocks for ~2 years and am only now more certain that ever that stockholders will prevail and we will be given back our companies. I believe the Preferred Shares will trade back to their Par Value, or at least within 10% of their Par Value, which leaves significant up-side.

    I am not a hedge fund, I am not a broker, and I am not an adviser. But I do have an incredible understanding of financial documents. Accounting Fraud was committed to justify the CONservatorship and this will not stand. The GSEs will be given back to their rightful owners (shareholders) and those owners will be rewarded by in the very near future.


    Fannie & Freddie -- Your Ticket to Fortune (and possibly Fame)
    Reply With Quote  
     

  2. #2 Links with Supporting Information 
     

  3. #3  
    RX Local
    Join Date
    Jul 2007
    Location
    Boston
    Posts
    19,644
    Lol aren't you the dude that was pumping chinese small-caps on here awhile back?
    Reply With Quote  
     

  4. #4  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Quote Originally Posted by PatsFan1283 View Post
    Lol aren't you the dude that was pumping chinese small-caps on here awhile back?
    Yep, that was me. Didn't foresee the fraudulent financial documents that would become prevalent in that space. I would say 95% of the Chinese Microcaps are fraud. SIAF is one of the few that I recommended that people would've done really well with.

    These Chinese companies buy audited 10Q's and 10K's, then inflate their numbers, and put it out as their own 10Q/10K. Painful lesson learned.
    Reply With Quote  
     

  5. #5  
    RX Local
    Join Date
    Jul 2007
    Location
    Boston
    Posts
    19,644
    Yeah, it happens man.

    Investing in China is tough, what I'm watching for is to see if their IP theft adds up to anything. Seems like once they get the proprietary tech of the big US firms that they will eventually cut them out and give it to Chinese companies. Tough to say how that unfolds. Not sure if we'll be able to profit off that.

    They don't respect patents at all though.
    Reply With Quote  
     

  6. #6  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Wow, this is huge! From Gretchen Morgenson:

    How Freddie and Fannie Are Held Captive

    http://mobile.nytimes.com/2016/05/22...0-bagger/3460/
    Reply With Quote  
     

  7. #7  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Reply With Quote  
     

  8. #8  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Pretty good summary of things (Minus the Accounting Fraud), but this at least gives you some perspective:

    http://thenationalrealestatepost.com...house-scandal/
    Reply With Quote  
     

  9. #9  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Whitney Tilson on CNBC re: F&F: http://video.cnbc.com/gallery/?video=3000520657
    Reply With Quote  
     

  10. #10  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Hope you're ready for round #2. It's almost GO time. Latest from Richard Epstein on Forbes:

    http://www.forbes.com/sites/richarde.../#49b1fe2051a8
    Reply With Quote  
     

  11. #11  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Almost over the finish line ... T-minus 3 months, but probably sooner.

    Great article today on the front page of the Miami Herald:

    http://www.miamiherald.com/news/busi...e93888877.html
    Reply With Quote  
     

  12. #12  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Latest from Richard Epstein on Forbes:

    http://www.forbes.com/sites/richarde.../#4e5da2502c40
    Reply With Quote  
     

  13. #13  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Here's the full list of Preferred Shares in both Fannie and Freddie. My favorites are the $50s. I'm heavy in FNMFN, FMCCK, FMCCP, FMCCT, and have a few FNMFO (because it can be converted into Common Shares in the event Common shares end up performing well in the long-term). I still think Preferred Shares are the way to go:

    Capture.jpg

    Capture2.jpg


    In case you can't view those well on the forum, here are Direct Links:

    Fannie: https://postimg.org/image/socphvg17/

    Freddie: https://postimg.org/image/tf5fnniej/
    Reply With Quote  
     

  14. #14  
    RX Senior tanner12oz's Avatar
    Join Date
    Feb 2007
    Location
    pittsburgh
    Posts
    2,784
    I remember you too..i think we had some winners back in the day
    Reply With Quote  
     

  15. #15  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Quote Originally Posted by tanner12oz View Post
    I remember you too..i think we had some winners back in the day
    Hey Tanner. Yep, those were the golden days of China micro-cap stocks. There are still a few I monitor, but most are scams as far as I can tell. It was unfortunate so many companies were able to slip through the cracks with their phony financial filings.

    Everything looked legit to me, but I didn't realize the extremes these companies were willing to go to in order to make things look good on paper. I had never heard of a company actually buying an audited financial statement and then editing the document to make it seem like their own financials. Lesson learned.

    But Fannie & Freddie will allow us all a HUGE opportunity to make some serious coin. I think the Common shares (FNMA and FMCC) will react more positively to any court rulings. So, if you're a very short-term trader, the Commons might not be a bad idea; however, I still see the Preferred shares being the better buy (especially in the event of a breach of contract ruling, which could potentially reinstate dividends back to when the NWS was implemented).
    Reply With Quote  
     

  16. #16  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Latest from Fannie Mae's Former CFO (this guy truly gets it and his analysis is spot-on):

    https://howardonmortgagefinance.com/...e-stress-test/
    Reply With Quote  
     

  17. #17  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Reply With Quote  
     

  18. #18  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Reply With Quote  
     

  19. #19  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Latest article from former Fannie Mae CFO Tim Howard:

    https://howardonmortgagefinance.com/...-of-a-problem/
    Reply With Quote  
     

  20. #20  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Motion to Compel just hit in Sweeney's Court. After many years, the wheels of justice will finally turn. All the BS rulings based on Lamberth's interpretation of HERA will soon be overturned. Now the real fun begins.

    Full docket text for document 335:
    **SEALED** OPINION AND ORDER granting [270] Motion to Compel. By no later than October 14, 2016, defendant shall file a memorandum with the court explaining why the court should not require defendant to pay plaintiffs' reasonable expenses incurred in making the motion, including attorney's fees. Signed by Judge Margaret M. Sweeney.
    Reply With Quote  
     

  21. #21  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Gretchen Morgenson on Judge Sweeney's Motion to Compel:

    http://www.nytimes.com/2016/10/05/bu....co/Z0YA4fzGCH
    Reply With Quote  
     

  22. #22  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Getting close to the Finish Line in the Perry Case. I fully expect a Remand at the minimum, but would prefer a Reversal. Big things on the horizon.

    Check out Richard Epstein's latest article:

    http://www.forbes.com/sites/richarde.../#30b014b23637
    Reply With Quote  
     

  23. #23  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    Getting close. LOL @ FHFA's Emergency Motion. Can you smell the desperation? ... This is all about to blow up in their face:

    http://gselinks.com/Court_Filings/PW...21224-0052.pdf
    Reply With Quote  
     

  24. #24  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    New article from Roger Parloff on Fortune discussing the settlement that FHFA is trying to intervene upon:

    http://fortune.com/2016/10/26/freddi...-suit-settled/
    Reply With Quote  
     

  25. #25  
    Stock Investing Guru
    Join Date
    Aug 2009
    Location
    Phoenix
    Posts
    1,661
    New article from Richard Epstein regarding the Gov's appeal and writ of mandamus to not hand over the documents (only 56 of 11,000+ that they are still covering with various privileges to prevent the truth from coming out).

    http://www.forbes.com/sites/richarde.../#52b84a1925ef
    Reply With Quote  
     

Tags for this Thread

View Tag Cloud

Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •