Fannie Mae Stock Price swings wildly over past 6 months!

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 8, 2009 -- Over the past six months, Fannie Mae’s stock price has been on a rollercoaster and the ride is far from over. Their stock price is constantly going up and down, and it even hit a dramatic low of $0.30 per share in November. While $0.30 may seem like a great price for those wishing to buy part of this stock, Fannie Mae and the New York Stock Exchange beg to differ. The NYSE has even given them an ultimatum – either push the price over a dollar or they’re out.

While all stocks rise and fall, Fannie Mae’s stock price is consistently all over the place. So why does Fannie Mae’s stock price vary so much? Some intuitive investors believe it’s due to all of the press surrounding Fannie Mae. For instance, since the NYSE requires stocks to be at least one dollar, Fannie Mae had to think of something…quick. They sent a letter to the NYSE explaining they would push their stocks up by doing a reverse stock split in six months. As soon as this news reached the public, Fannie Mae’s stock price soared above a dollar. Experienced investors seem to agree that if Fannie Mae’s business was kept out of the news, their stock prices would remain more stable.

A reverse stock split could hurt many investors.

Even though the letter sent to the NYSE temporarily increased Fannie Mae’s stock price, they’re hoping to permanently keep the price above a dollar when their new reverse stock split plan comes into effect. While this plan may keep Fannie Mae on the NYSE’s good side, it may also frustrate those who have invested in Fannie Mae stock. Stockholders who purchased stock for $0.30 prior to the split wouldn’t necessarily be harmed, but those who purchased stock for higher amounts could lose money. For example, if a shareholder bought stock for $0.85 and the split brought the price up to $1.25, the value of the shares would decrease and the shareholder may end up losing money. With this kind of devaluation, investors rigorously watching Fannie Mae’s stock price agree they would rather the stock remain at $0.30 a share.

Buy fannie mae stock?

With all of the drama surrounding Fannie Mae’s stock price, it may seem like Fannie Mae’s reign could be over soon, but don’t count them out yet. Regardless of the constant up and down numbers game, Fannie Mae’s stock most likely won’t tank. Even if the stock does reach a ridiculously low price, news about Fannie Mae stock, especially news concerning government involvement, will probably make it soar once again. And if that’s not enough to reassure Fannie Mae fans, President-Elect Barack Obama’s cabinet is made up of members who used to be Fannie Mae executives. Even though Fannie Mae stock has its issues, it’s definitely still a stock many still support and will support in the future.

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