Shares of Freddie Mac (OTC: FMCC) are soaring in today’s trading. The penny stock reached a high of $0.41 in mid-day trading, soaring 30% to close at $.40 today.
Since delisting from the New York Stock Exchange on July 8, 2010, the penny stock of Freddie Mac has climbed more than 70%. Freddie Mac had been asked to delist its shares from the exchange, after it failed to comply with minimum listing requirements. However, the penny stock has done rather well ever since it moved to over the counter trading.
The delisting of Freddie Mac came after the mortgage company continued to struggle from the effects of the financial crisis. During the financial crisis, the mortgage giant suffered huge losses after the housing market collapsed. Freddie Mac was set up to encourage lending in the mortgage market. The whole idea behind setting up the mortgage company was that it would help in freeing up capital for banks and mortgage lending agencies. It would do this by buying mortgages from banks and mortgage lending agencies and sell them to investors as debt securities. This would result in the freeing up of capital in banks’ and mortgage lending agencies’ balance sheet, enabling them to lend more.
However, as the quality of mortgages deteriorated at the peak of the housing bubble, the company’s risk profile increased. Eventually, when the housing bubble bust, the company took a huge hit and was on verge of collapse. It was finally bailed out by the U.S. government. The effect of the collapse of Freddie Mac was huge on the company’s stock, which plunged from a little over $60 to the penny region.
The penny stock of Freddie Mac is now trading below its 50-day and 200-day moving averages. It has a 52-week range of $0.24-$2.50. Year-to-date, the stock has plunged more than 150%. At the moment, the penny stock has strong support at $0.31. The stock has broken through its resistance level of $0.33 in today’s trading.
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 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.
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.
- Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
- See today’s top stock picks and market analysis
- Want more? Check out the message board buzz for these stocks
- See what newsletters are recommending these stock picks
- Get breaking news alerts on these stocks: http://thestockmarketwatch.com/
- This newsletter has been helping traders make a killing on these stocks. Click here for a 25% discount offer.
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.
