Monday, July 7, 2008

A Fan of Freddie

I picked up some shares of FRE, the quasi-government federal mortgage company as it was sitting near lows at $11.24. I had been waiting to jump into Freddie or Fannie (FNM) at such a time like this.

My thesis is that they are too intertwined with the government for anything really, really bad to happen, unless doomsday predictions come true. After a 25% intraday pop, I liked this entry point, whether I sell it off after a (potential) rebound or hold it for the long haul.

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