Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 3156172 times)

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11220 on: January 14, 2019, 01:31:57 PM »
Which previous board posts ? I am looking for a dividend paying preferred to pay me some money every semester and not have to worry each time. Owe $3300 currently. I have 500 FMCKJ and 2000 common shares of FNMA. I need money tomorrow for this semester. Should I sell FMCKJ or FNMA? I wanted to hold in this run up but my luck is always bad.

u can read previous board posts on this matter - there is everything from $25 par to $100,000 par securities should do well.  You can also play the common too which have now blown out wider to the prefs (ie: cheaper) right now...


muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11221 on: January 14, 2019, 02:21:18 PM »
Can someone recommend a preferred stock?  I would like to invest some money so that dividends can cover tuition every semester. if you donít have any specific recommendations, how can I go about looking for one (where to look and what to look for).  Thank you.

You spent over a year on this thread and now asking these questions??? :o
I think I recommended that you read bankruptcy investing and all that stuff one year ago. If you have read those books, you should have a good knowledge now.

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11222 on: January 14, 2019, 02:21:51 PM »
I don't think she means GSE prefs, she means other company prefs or dividend stocks.
Invest for retirement?  Sure.  But investing in eternity is infinitely more important.  Don't get it twisted.  "...but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal."  Matthew 6:20

muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11223 on: January 14, 2019, 02:26:34 PM »
I am out.   I wish you best of luck with it.  I just can't handle the uncertainty and the politics behind it.  The market offered me a chance to bail with a small profit and this position has actually outperformed S&P500.  Good enough.

Yikes.. Wish you best of luck.
Please excuse my comments if you think they are offensive, but my 2 cents is to cut losses short and keep profits long. You can handle the uncertainty and politics behinds it when you are losing, and you are holding on to hope you can sell for break even to get relieved, but now that the uncertainty and politics have finally diminished and stock moved sightly above your break even point, you are out? How can this not be a mistake? On the other hand, imagine Hillary won the election, and these preferreds lost big after she appointed David Stevens to FHFA, would you sell at those big losses, or would you hold on because you can't take losses?
Those would can't take losses eventually stop trading because they were forced to take mother of all losses.
« Last Edit: January 14, 2019, 02:28:21 PM by muscleman »

no_free_lunch

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11224 on: January 14, 2019, 02:38:00 PM »
No offense taken.  I am here to learn.   It is what it is.  I am okay holding compounders, high quality stuff that I think will ride out the storm.  I have no idea how to handicap this one.  When I was down 30%, I realized how little I really know about this situation.  I realized how dependent I am on the government doing something and yet the political gridlock just seems to be increasing.

Ahab

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11225 on: January 14, 2019, 02:51:13 PM »
For me, this saga has been stomach churning at parts. I'm lucky that I don't get too emotional about the paper losses that have inevitably arisen in Fannie/Freddie over these past few years.
@nofreelunch: Interesting to hear your sentiments. I think the political gridlock and bureaucratic minutia surrounding Fannie/Freddie has had an opposite effect on my desire to invest over time. The lack of a congressional solution over a decade has given me confidence that these institutions are a firm part of the Washington status quo. Politicians occasionally like to rock the boat, but no one wants to be responsible for tipping it over. This is currently my largest position by far and I expect a reform that largely perpetuates the status quo.
Holdings: FNMAS/J/N, FMCKO, BAC, JPM, GOOG, GM (calls),  Tesla (is a zero)
Twitter: AhabValue

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11226 on: January 14, 2019, 02:59:22 PM »
For me, this saga has been stomach churning at parts. I'm lucky that I don't get too emotional about the paper losses that have inevitably arisen in Fannie/Freddie over these past few years.
@nofreelunch: Interesting to hear your sentiments. I think the political gridlock and bureaucratic minutia surrounding Fannie/Freddie has had an opposite effect on my desire to invest over time. The lack of a congressional solution over a decade has given me confidence that these institutions are a firm part of the Washington status quo. Politicians occasionally like to rock the boat, but no one wants to be responsible for tipping it over. This is currently my largest position by far and I expect a reform that largely perpetuates the status quo.
The status quo is conservatorship. What do you mean?

Ahab

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11227 on: January 14, 2019, 03:14:49 PM »
Sorry for the lack of clarity. I was referring to the status quo of Fannie & Freddie being the dominant players in the mortgage securitization market. Obviously, I'd love for the conservatorship aspect of the status quo to end  :D :D
Holdings: FNMAS/J/N, FMCKO, BAC, JPM, GOOG, GM (calls),  Tesla (is a zero)
Twitter: AhabValue

undervalued

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11228 on: January 14, 2019, 03:40:17 PM »
Which previous board posts ? I am looking for a dividend paying preferred to pay me some money every semester and not have to worry each time. Owe $3300 currently. I have 500 FMCKJ and 2000 common shares of FNMA. I need money tomorrow for this semester. Should I sell FMCKJ or FNMA? I wanted to hold in this run up but my luck is always bad.

u can read previous board posts on this matter - there is everything from $25 par to $100,000 par securities should do well.  You can also play the common too which have now blown out wider to the prefs (ie: cheaper) right now...

You shouldn't listen to me because my luck is pretty bad also. When I can't decide which one to sell or hold, usually because I don't know which one will do better, I sell both in equal percentage.

If you don't want to worry, better keep it in cash.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11229 on: January 14, 2019, 05:06:55 PM »
When I was down 30%, I realized how little I really know about this situation.

Just my 2 cents, you could totally predict this scenario before buying this security. Just imagine you bought, and then a few months later, it drifted down 30%. How would you react? Would you realize "how little I really know about this situation."? In that case, you could have avoided buying from the beginning.
The point I want to make is that we all have to do mental rehearsals BEFORE buying anything.
On the other hand, if you merely start to think you know nothing about this, when no fundamental has changed but just price dropped 30%, perhaps you are not a good fit for fundamental investing. I suggest you try technical investing.