My Opinion on FannyMac Bailout (BUY)

Quote from achilles28:


What this means to us traders?

It means Freddy May will never see 0$ per share.

It will either be absorbed into a yet-to-be-created Government or Private entity (a la Bear Sterns absorbed by Morgan) to prevent CDS Trigger or will be infused with enough Tax Payer money to make it a viable Institution.

That means 50 Cents a share is probably a good bet.

It will never be allowed to hit zero folks.

Its a buy.
More...

This was a good trade.

Fannie went to around 40 cents than traded upwards of 2.50$

Freddy - down to 20 cents than up to 2.90$

In at 50 cents, thats 400% profit, right there.

My fundamental game has some promise, eh?? ;)
 
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