Fannie Mae, Freddie Mac Outperform Tesla Motors Inc, Netflix, Inc.

net worth sweep Fannie Mae Freddie MacBy User:AgnosticPreachersKid (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Shares of Tesla Motors Inc (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX) are on the rise yet again today, with the former increasing more than 2% and the latter rising more than 1%. But believe it or not, Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have outperformed both of them—and not by just a little bit.

Fannie, Freddie rise more than 1,000%

Over the last 14 months, shares of Tesla Motors Inc (NASDAQ:TSLA) are up more than 635%, while Netflix, Inc. (NASDAQ:NFLX) has risen 386%. However, as a report posted on Yahoo! Finance notes, Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) shares have risen 1,724%, while and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) stock has increased 1,626 since Jan. 1, 2013.

The big problem both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are facing is the fact that they are now government-sponsored entities. The government created them to pump money into the mortgage markets, but then after the financial crisis, the Federal Housing Finance Agency put them into a conservatorship because U.S. taxpayers had to bail them out—to the tune of more than $187 billion since September 2008.

Fannie, Freddie turn profitable

At this point, both companies have paid more dividends out than the size of their bailouts, but because of their previous agreement, they can’t buy out the government’s stake. Shareholders like Fairholme Funds are fighting this, saying that the arrangement is unconstitutional. The firm’s chief Bruce Berkowitz has been attempting to buy them out for months, while the government attempts to wind them both down over the next four years.

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Other shareholders continue to say that the companies’ stocks are undervalued. And now there are allegations that the Federal Deposit Insurance Corporation (FDIC) is guilty of insider trading regarding shares of both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)

Needless to say, this is one saga that’s probably going to go on for quite some time.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

4 Comments on "Fannie Mae, Freddie Mac Outperform Tesla Motors Inc, Netflix, Inc."

  1. 1.
    Netflix currently has over 40 million
    subscribers in total, more than a third above its total subscribers last year.
    77% of the company’s current subscribers are from the US, while the remaining
    are from abroad

  2. lol, you stick with fannie and freddie who caused the bundling of subprime mortgage notes and the pending doom of 2008, and I’ll stick with Elon and Reed Hastings. Do whatever you want Michelle. It’s a stinky piece of pussy. Gross and infected.

  3. Which is why they need to be privatized.

  4. This is a joke, right ? They think just because they have almost paid back as much as the bailout paid them, that they are free-and-clear ? They work in the loan industry, and they think the money was given to them interest free ? They think the damage they caused to the global economy is all paid back just because they, as a company, recovered ? The second the government reliquishes control over these companies, they will go right back to “business as usual” where they paid no dividends and gave all the cash to their executives. The only reason they even started paying dividends was so the executives could have an income !

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