Freddie Mac (FRE) pops the housing bubble

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Strategies & Market Trends Freddie Mac (FRE) pops the housing bubble

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To: KeepItSimple who wrote (3)	6/13/2003 7:15:14 AM
From: John Carragher	of 50

Never did puts can you give an example of ordering a put... does in come in 100's 1000's... I assume I cannot buy one in an ira..? or maybe I can... how do you go about value est. thanks if too much to explain.. I understand... there are put sites..

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To: John Carragher who wrote (5)	6/14/2003 12:18:22 AM
From: KeepItSimple	of 50

if you're asking those sort of questions you have no business playing the options game- you will get your ass handed to you by the pros.

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To: KeepItSimple who wrote (6)	6/14/2003 8:03:25 AM
From: John Carragher	of 50

I was following your suggestion and thought I was keeping it simple.. ggg Have a nice day.. ya hear. ps up $3. today.. one broker upgrade from sell to buy.. target in 12 mo.. $60/70.

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To: KeepItSimple who started this subject	6/16/2003 11:39:05 PM
From: pass pass	of 50

I believe this will require a lot of crisis management but they will keep it really really really quiet and make it look like a non-event, especially during the election year. I cross my fingers. If this fire doesn't get put out magically, I cannot even imagine.

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To: pass pass who wrote (8)	6/20/2003 9:20:20 PM
From: KeepItSimple	of 50

Woo hoo! Today the SEC started probing Freddie Mac because it turns out the executive staff was dumping their insider shares hand over fist just days before they were all fired. marketwatch.com Folks, you're going to have to face the facts. This company is nothing more than another Enron or Worldcom. A company that is based on defrauding public shareholders is doomed to collapse eventually. Freddie Mae might last another few months, but just like Enron and Worldcom and all the dot.bombs, this stock is headed to zero. The only bad part is that YOU, Joe Taxpayer, will have to pay every penny of the bailout costs when this fraud of a company DOES go under. Isn't that lovely? Short to zero, folks. Short to zero. I've been noticing a LOT of activity on "longshot" put options with FRE.. Looks like quite a few people in the know are placing their bets ahead of time that this company is a goner. Also a half-dozen class action lawsuits were filed today, accusing the company of racketeering violations and fraud. Why does this story sound familiar? Who out there is holding up the stock of this scam? The fed? Think they're planning a LTCM bailout plan to keep the entire home mortgage bubble alive for a few more months? biz.yahoo.com Chitwood & Harley Files Securities Class Action Suit on Behalf of Purchasers of Federal Home Loan Mortgage Corporation Between April 18, 2000 and June 6, 2003; biz.yahoo.com Wolf Haldenstein Adler Freeman and Herz LLP Commences Federal Home Loan Mortgage Corporation Class Action biz.yahoo.com Spector, Roseman & Kodroff, P.C. Announces Class Action Lawsuit Against Federal Home Loan Mortgage Corporation -- FRE biz.yahoo.com Emerson Poynter LLP Announces Class Action Lawsuit Against Federal Home Loan Mortgage Corporation -- FRE All of these were just the ones filed TODAY, after the bell.

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To: KeepItSimple who wrote (9)	6/21/2003 8:29:59 AM
From: John Carragher	of 50

on the other hand some reports say they have done nothing wrong... suits can be filed all day all , it is another thing to proceed through the courts to find damages... Two accounting firms came up with different explaination as to how the gains should be booked.. There is no enron here. I jumped in and bought at $50 and $47. looking forward to a nice return when this settles down.

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To: John Carragher who wrote (10)	6/24/2003 1:25:03 AM
From: pass pass	of 50

according to Yahoo Finance, FRE has 3400 employees and a market cap of $34 Billion. Ebay has 4000 employees and a market cap of $32 Billion. You think FRE is undervalued?

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To: KeepItSimple who wrote (9)	6/25/2003 7:43:34 AM
From: John Carragher	of 50

Impact of Restatement on Financials and Business As stated above, Freddie Mac continues to expect that the cumulative effect of the restatement will be to materially increase retained earnings for prior periods and materially increase its capital surplus under its regulatory minimum capital requirement as of December 31, 2002. Based on the information currently available, management believes that the expected cumulative effect of the restatement is to increase retained earnings as of December 31, 2002, by a range of $1.5 billion to $4.5 billion. Management cautions, however, that neither the restatement nor re-audit processes are complete and the final determination of the cumulative effect could therefore differ from this range. The expected cumulative increase to retained earnings will likely be driven primarily by gains on certain derivatives and mortgage securities that will be marked to fair value during periods in which interest rates were declining. In addition, the corporation continues to expect that adjustments affecting its income will relate substantially to changes in the timing of income recognition, and, as a result, cumulative increases related to these adjustments will have offsetting effects in future periods. These accounting policy changes will cause greater volatility in Freddie Mac's financial statements for prior periods. Freddie Mac believes there also will be significant volatility in its results in future periods. Freddie Mac also expects a material increase in the fair value of shareholder equity in its fair value balance sheet as of year-end 2002 versus year-end 2001. This expected increase is subject to completion of the restatement and re-audit processes. Freddie Mac's economic hedges remain effective, as demonstrated by its consistently low levels of portfolio market value sensitivity ("PMVS") and narrow duration gap. The accounting policies that will be implemented in connection with the restatement will not adversely affect Freddie Mac's ability to invest in or securitize mortgages, or prudently manage the risks in its business." does this get a pop up today... doesn't this bring down the pe with additional retained earnings.

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To: John Carragher who wrote (12)	9/2/2003 1:35:34 PM
From: KeepItSimple	of 50

Looks like the big boys are heading for the exists with FRE and FNM- doing their usual pump and dump right at the end of the game. If you're new to investing, and can't figure out what this message means, then maybe you should ask yourself- why would Merril Lynch give free advice to the public? Do you think there is a law that says they have to start buying stocks they tout to the retail investor? Do you think it is illegal for them to be DUMPING stocks after they say "strong buy" to the public investors? Do you think they tell the same thing to their wealthy private investors who let them handle tens of millions of dollars? :) Nuclear shorts deployed. These pigs are going down. biz.yahoo.com .... In the financial sector, Merrill Lynch upgraded the shares of mortgage lending behemoths Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) to a "buy" from a "neutral" on belief that the stocks have bottomed out. Freddie put on 1.1 percent and Fannie added 3.1 percent.

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To: KeepItSimple who wrote (13)	9/2/2003 3:57:12 PM
From: John Carragher	of 50

Merrill wasn't only one putting buy on fre... a couple of shows over the weekend mentioned fre as bottomed. and they feel worst of any scandals are over....

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