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Wednesday, May 29, 2013

Fannie Mae ( $FNMA ) Why is soaring Higher up 1000% in 2013 Would you hold long term for 1,000%+ gains?What stock has gone up more than the 1246% (!) of Freddie Mac this year? Why, the 1351% of Fannie Mae!

what I was trying to tell you ($4.65) but glad you held for big bucks,congrats you made lots of money!!The over-the-counter common shares of mortgage giants Fannie Mae /quotes/zigman/226360/quotes/nls/fnma FNMA +24.02% and Freddie Mac /quotes/zigman/226335/quotes/nls/fmcc FMCC +26.67% each leapt over 25% on Monday, extending the 40%-plus gains seen Friday.How can $FNMA common be worth $24B while Preferred's trade at 75% discount to PAR? Last we checked Prefs are senior to common Both companies are under government conservatorship, and the Treasury gets all their dividends.$FNMA should bounce back pretty quick. How about hitting 6 today? Investors have poured into both stocks on the hopes the firms will be able to buy their way out of government control once the dividends they have sent to the government exceed the $187 billion injected into them. Year-to-date, Fannie Mae shares have leapt 1351% and Freddie Mac shares have gained 1246%. Of the preferred shares that are active, Fannie Mae 8.25% /quotes/zigman/494289/quotes/nls/fnmas FNMAS +5.47% rose 6.7% and Freddie Mac /quotes/zigman/492416/quotes/nls/fmckj FMCKJ +5.68% 8.375% added 6.9% What stock has gone up more than the 1246% (!) of Freddie Mac this year? Why, the 1351% of Fannie Mae! Would you hold long term for 1,000%+ gains?
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