Hot Penny Stock of the Day; Fannie Mae

Posted by on Jul 27, 2010 | No comment

Shares of mortgage giant Fannie Mae (OTC: FNMA) are soaring in today’s trading. The penny stock reached a high of $0.34 in mid-day trading. At last check, it was up 21.76% to $0.331, with volume at 21.48 million in mid-day trading.

The penny stock has a 52-week range of $0.19-$2.13. It is currently trading below its 50-day and 200-day moving averages of $0.59 and $0.86, respectively. The penny stock has broken through its resistance level of $0.29. It has support at $0.27.

Earlier this month, Fannie Mae was delisted from the New York Stock Exchange. The delisting came after Fannie Mae failed to comply with the exchange’s minimum requirements. The stock was delisted on July 8. Since then it has been trading over the counter. The stock has done well, after it was delisted from the NYSE. Currently, it is up almost 80% from July 8, 2010.

Last week, Fannie Mae’s Economics & Mortgage Market Analysis Group gave their outlook on the economy. With continued concern about the global economic recovery, due to the crisis in Europe, and cautious approach by private employers and consumers in the U.S., the Economics & Mortgage Market Analysis Group has revised its projected growth for 2010 to 2.8% from its previous projection of 3.2%.

Fannie Mae Chief Economist Doug Duncan said that the economic expansion has shifted into a lower gear due the increased volatility in the financial markets.

According to the group, the headwinds in housing have also picked up. The group anticipates housing sales in 2010 to be flat; however, a modest recovery is expected in the fourth quarter of 2010 and into 2011. Duncan said that residential investment will have a neutral effect on economic growth in 2010, which makes the current economic recovery quite unusual.

Fannie Mae was set up the Congress to facilitate lending in the mortgage market. The company’s role is to buy mortgages from lenders, package them into securities and resell those securities to investors. The financial crisis of 2008 led to the demise of the mortgage giant as it got caught in the subprime mortgage mess along with many other financial institutions. Following a bailout by the U.S. government, the company has been fighting hard to recover. The nascent recovery in the U.S. economy should give the company some hope.

The Fannie Mae stock, which prior to the financial crisis traded close to $60, has been trading in the penny region since September 2008.

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BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

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This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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