FNMA and FMCC preferreds. In search of the elusive 10 bagger.

[texual]

Housing has been more frequently mentioned in Washington. There's mention of F2 and mortgages. I suspect after whatever wartime fiasco is happening now, this will be a bigger focus. 

 

I have been in and out of F2 (preferred as well) at a loss, on several occasions.

 

Today I did buy back into them and will slowly add in. For now it is largely commons but I want to get a bigger FNMAS position over the FMCC/FNMA to the tune of 2/3 total. Insurance hedge, I suppose.

 

I'm not entirely convinced Ackman will save the day but I think Burry makes good arguments about these stocks being attractive. I've been aware of their profitability and earnings but that doesn't necessary mean much to OTC holders. Anyone else buying here?

[This2ShallPass]

2 hours ago, TwoCitiesCapital said:

 

Man, I'll admit, I'm jaded by being in this trade for damn near 15-years. So I try to take my own attitude with a grain of salt. So you should too. 

 

But this is the most hopeful bunch of shareholders I've ever encountered. And is honestly the only reason I'm looking to buy more of the preferred's if they hit single digits of $50 par. 

 

Im beyond thinking that these things get paid, recapped, released, or that justice gets served.

But I'm not beyond making a trade buying  on

despair and banking that another group of hopeful individuals who think the President will just give these things away will come by over time. 

Yes definitely, I have sized it in a way where I lose a little if commons get wiped out. I'll end up with a gain overall as I had a 5-6 bagger on my original commons. But that was only a 1% position that I bought in 2022. It was always meant as a lottery bet, but my mistake was I sold too soon.

[This2ShallPass]

2 hours ago, TwoCitiesCapital said:

And is honestly the only reason I'm looking to buy more of the preferred's if they hit single digits of $50 par. 

I'll do this as well. Getting 5x on pfds is much more of a surer bet. Currently I don't see any >2x.

[TwoCitiesCapital]

Lol 

 

Ackman goosing his quarter end numbers again....

[Mephistopheles]

For fucks sake, why can’t he do this with FNMA/FMCC?

[COBFInfinity]

So the bizarre announcement of Pulte as DNI results in a bizarrely low response in the common and JPS today - modest declines on low volume. Seems like no one knows what to do with this news.

[TwoCitiesCapital]

8 minutes ago, COBFInfinity said:

So the bizarre announcement of Pulte as DNI results in a bizarrely low response in the common and JPS today - modest declines on low volume. Seems like no one knows what to do with this news.

 

 

Surely this means an IPO is imminent, right? It couldnt mean that these entities aren't a priority for the administration 

[Mephistopheles]

1 month away from end of Q2. Ackman bump upcoming