Fannie Mae/Freddie Mac are these common stocks worth the risk?

in #money8 years ago

Back in 2013, I ended up buying about 2000 shares of Fannie Mae @ .45 cents. I rode it up to about the mid $2 dollar range. After I pulled out, I have been considering for the past 3 years whether or not to give this stock a try again. My reasoning is:

-All lawsuits are still up in the air.
-The government doesn't seem to be able to wind down this institution
-Fannie/Freddie have recouped the bailout funds and all profits are going to the government
-Fannie/Freddie now back, half of all mortgages in the U.S.

I have always believed, if the government allows Fannie/Freddie to re-privatize, this stock could be sitting at or near $25-30 dollars.

Would love to hear from those who are more knowledgeable in this area.
Thanks