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Unread 09-24-2008, 04:21 PM
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FRE - FNM - AIG: Major Opportunity

I am listing these stocks because I find that there is some major opportunity to make huge money with Freddie Mac - FRE, Fannie Mae - FNM, and American Insurance Group - AIG.

We all know that the US government has taken over control of Freddie Mac and Fannie Mae as their stock collapsed. I personally bought $500 of FRE (Freddie Mac) shares when it was selling at $0.32. The stock in over a period of just a few days has increased 618% thus bringing my investment total to over $3,000. The stock price is now $1.89.

Just two weeks ago, the stock was trading at $5 and early July it was trading at $25 so there is some MAJOR opportunity for long term money making. Freddie Mac is also a sister company of Fannie Mae so both these stocks are equally good to invest in. Last year, Freddie Mac was trading at around $65 to $70.

The government took over these two companies to prevent them from failing (both were originally created by the government over 20 years ago). This take over has removed the irresponsible CEO and management who caused these stocks to crash, by giving out bad and risky mortgages, and the main goal is for them to recover in order to prevent a collapse of companies holding half ($5 TRILLION) of the United States mortgage debt. This means these two companies are extremely safe and are almost guaranteed to recover to previous stock prices, possibly another 1000% (or nearly 4000% if it gets to $70 again) from the price today.

With the government in control, it's almost impossible for these companies to fail now, that's why these are unique because of the increasing investor confidence. The government only wants these stocks to increase in price and stabilize again (to stabilize the current financial situation). I would be much more hesitant if this was just some ordinary company stock that crashed, but this government intervention makes these stocks golden opportunities. I believe this is a once in a lifetime opportunity in Freddie Mac and Fannie Mae for the average person to buy large volumes of shares at prices this low where not too long ago, only the rich could afford; with a high probability that these stocks will again reach the high unaffordable levels again (meaning a lot of people getting into this early could become very rich).

These are both big board stocks which were downgraded and reclassified as "penny stocks" now because of the one in a lifetime prices which haven't been this low since the creation of both of these companies. One with enough money could certainly become millionaires by investing in these companies. A $500 investment at 32 cents (where I bought in) would be worth $100,000 when the stock recovers to $65.

Again, these are mid-long term investments, although I have made 615% return on investment in less than a week. Within the next few months, I would expect this to EASILY be within $25 range at the least. A $500 investment at the current closing price ($1.89 for freddie mac) would be worth over $6,500 at $25. Anyone who picked up at the dead bottom of $0.32 as I did would make $38,500 when the stock reaches $25 (a somewhat lower level for this stock seen last July before the crash).

Like they say, buying when the stock is low and people are panicking is when millionaires are born. Still, do your due diligence and research before buying any of these stocks. I am only giving a suggestion and information from my own investing.

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Unread 09-24-2008, 04:37 PM
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Here are the charts for both Freddie Mac and Fannie Mae. This shows a little bit of the magnitude of how much more the price could still move.

Note: the government took control of both of these stocks just before they hit their lows (after that last major drop from the $5 region) and then you can see they are now slowly rising since then.

FRE - Freddie Mac: http://bigcharts.marketwatch.com/cha...138&mocktick=1

FNM - Fannie Mae: http://bigcharts.marketwatch.com/cha...184&mocktick=1


Like I said, these kinds of stock prices haven't been seen since the early 1980s and late 1970s.
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