If anyone needs a reminder of just how uncertain the current mortgage market is, they should follow the gyrations of Freddie Mac (OTCQB: FNMA) and Fannie Mae (OTCQB: FNMA).
Although both or their stock volumes touched the sky Sept. 22, their share values also continued their torturous declines.
On Sept. 22, Freddie Mac's (OTCBB: FMCC) share value closed at $ $3.00, down 18 cents, or 5.66% from its closing price of $3.18 the previous day, on volume of 10.8 million shares. This is four times its 30-day average volume of 2.5 million shares.
Meanwhile, Fannie Mae's (OTCQB: FNMA) stock value closed at $2.98, down 17 cents, from its close of $3.15 the previous day, with 30.4 million shares changing hands, nearly five times its 30-day average volume of 6.6 million.
A Tug of War
Some industry observers believe that both stocks remain so volatile because of the constant uncertainty and controversy that engulfs the quasi-public agencies in both public and private arenas.
On one hand the Obama Administration is pushing for reform that would once again make it easier for consumers to purchase a home with low down payments and limited credit history, while conservative forces both public and private are trying hard to dismantle both agencies and make them strictly private entities driven solely by market forces.
Moreover, both agencies face countless lawsuits and a slumping housing market that appears to be killing the chances of any meaningful economic recovery.
Investors find themselves as partners in a tug of war with conflicting views of what the agencies should become - or if they should be allowed to survive at all!
So, it is with little wonder that both stocks' volume continues to soar as their collective share prices continue to fall.
Find out what could be the best investor's move when it comes to FNMA and FMCC by getting the complete report here or by cutting and pasting the following link in your Web browser:
Monitise Needs a Knight on White Horse
Monitise PLC (OTCPink: MONIF) has been having a rough ride lately.
On Sept. 22, Monitise PLC (OTCPink: MONIF) gained back some of the 35% share value it lost last week, closing at 56 cents, up 5 cents from the previous day's close of 51 cents.
It did so with 11.8 million shares changing hands, nearly twice its 30-day average volume of 6.5 million shares.
The London-based mobile-money company is recovering from the major financial shock it absorbed last week when Visa announced that it had hired JPMorgan to investigate options for the 5.5% stake it has in the company.
To add insult to injury, some industry analysts are questioning the long-term sustainability of Monitise's business model altogether.
The IBM Factor
Although it's certainly a long shot, some analysts point to the alliance Monitise struck with IBM (NYSE: IBM) on Aug. 27 as evidence the technology and consulting giant is waiting in the wings to gallop out on a white horse and rescue the company by buying it.
That remains to be seen, but no one doubts that the next few weeks will be a rollercoaster ride for Monitise and its shareholders.
Find out what could be the best investor's move when it comes to MONIF by getting the complete report here or by cutting and pasting the following link in your Web browser:
No News Is Good News – Maybe
If there was ever a quiet company, WMI Holdings Corp. (OTCQB: WMIH) is it.
The Seattle-based mortgage reinsurance company enjoyed robust stock volume Sept. 22, with 161,717 shares changing hands, higher than its 30-day average volume of 148,711 shares.
Its share value closed at $2.54, down 3 cents from the previous day's close of $2.57 cents.
However, WMI Holdings has offered no press releases for months and has not been reported in any news outlets.
WMI Holdings last announcement came Apr. 10 on Apr. 10 when the company said that it had issued $110 million aggregate principal amount of its 13% Senior First Lien Notes due WMI Holding and Wilmington Trust, National Association, as Trustee.
At that time, the company also said it issued $20 million aggregate principal amount of its 13% Senior Second Lien Notes due 2030 and, together with the First Lien Notes, under an indenture, dated as of Mar. 19, 2012 between the company and Law Debenture Trust Company of New York, as Trustee.
Find out what could be the best investor's move when it comes to WMIH by getting the complete report here or by cutting and pasting the following link in your Web browser:
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