FNM lose 2.2B in 1Q, which is lose $2.57 per share when street is expecting a lose of $0.81 per share. Cut divident, need to raise $6B, with expectations the housing slump will persist into next year, but stock UP 2.5%?
Am I missing something?
Started by
CNSZ
, May 06 2008 10:55 AM
2 replies to this topic
#2
gismeu
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- Traders-Talk User
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Posted 06 May 2008 - 11:26 AM
FNM lose 2.2B in 1Q, which is lose $2.57 per share when street is expecting a lose of $0.81 per share. Cut divident, need to raise $6B, with expectations the housing slump will persist into next year, but stock UP 2.5%?
what you are missing is that the market is not rational at all!!!
You need to trade price, not common sense
fwiw, gis
If you can't buy Happiness, STEAL IT!
#3
mike123
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Posted 06 May 2008 - 11:52 AM
It is up because shorts are covering with bad news. This happens everytime there is bad news with FNM or FRE. Buy the next bad news on the open and sell it end of day.
