Freddie Mac and Fannie Mae

Question

I was thinking of investing in one of these two companies. I know the housing market tanked along with both of these companies but I am looking long term.

When the housing market does stabilize again this stocks will eventually rise correct?

Anyone think that in 10 years they will be trading in the 30-40 dollar range again?

I was thinking of buying 5000 stocks which is only around 3500 dollars which is not a huge investment

I have will not need the money so if I have to wait 10 years thats fine just want some opinions on this

bowlwins · Answer

I was thinking of investing in one of these two companies. I know the housing market tanked along with both of these companies but I am looking long term.

When the housing market does stabilize again this stocks will eventually rise correct?

Anyone think that in 10 years they will be trading in the 30-40 dollar range again?

I was thinking of buying 5000 stocks which is only around 3500 dollars which is not a huge investment

I have will not need the money so if I have to wait 10 years thats fine just want some opinions on this

bowlwins · Answer

Holy crap what bad grammar mistakesLets try this again:I was thinking of investing in one of these two companies. I know the&#xD;&#xA;housing market tanked along with both of these companies but I am&#xD;&#xA;looking long term.When the housing market does stabilize again these stocks will eventually rise correct?Anyone think that in 10 years they will be trading in the 30-40 dollar range again?I was thinking of buying 5000 stocks which is only around 3500 dollars which is not a huge investmentI  will not be in need the money so if I have to wait 10 years it will fine. I just want some opinions on this

jaxwhitey · Answer

Your range is high, real high.  I&#x27;d be thrilled if it got to $6-$7 without any reverse splits

wallstreetcappers · Answer

If they make it and the housing market stabilizes they could see 20, but that might take 10 yrs or more.

The dilution they are going to have is enormous and the loans to pay back etc..its going to be an uphill climb for sure, but you never know we have seen greater recoveries.

Sherman79 · Answer

i would go with a good company that has been deflated with the recession.  Companies like Potash(POT) and Rio Tinto (RTP). RTP will go back up once the economy stabilizes and there is a demand for the minerals, aluminum and steel to make the products we buy. Farmers will always use fertilizer although they might not use as much right now. POT will be back up when they do, and actually will go up with the market

bowlwins · Answer

Thanks I can wait 10 or even 20 years .This investment would be for something like a child&#x27;s college fund and I have yet to have kids .I think 3500 risk to maybe see 60k in twenty years is worth it

DTher85 · Answer

What worries me is the government practically having stake in the company because of the loans they gave to Fannie and Freddie so they can stay on life support. I think these loans will prevent them from seeing anything close to your $30-$40 range. I would be happy to see them make it to the $5 range to be honest. Even then thats still a very good return considering they're trading at under 70 cents last I saw.

bowlwins · Answer

5 dollars a share would be fine by me . I&#x27;m just mad I didnt put my investment in a month ago when they were trading at .35 cents a share. My investment would have already doubled

Freddie Mac and Fannie Mae

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