Qs Laptop
Thinks s/he gets paid by the post
- Joined
- Mar 11, 2018
- Messages
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I do a lot of speculative plays in my non-taxable retirement accounts. These are typically $2,000 to $5,000 initial investments with the goal being to make a quick turnaround of 20% to 30%. The goal is to find several companies and essentially buy and sell several times a year, padding my retirement account. I've been mostly successful at doing this in the past two years. Successful enough that I'm way ahead on winners with only a couple losses.
In my stock screeners I came across FMCC, or Freddie Mac. (There seems to be more than one Freddie Mac stock, I landed on FMCC.) The year long chart of this stock looks like a ragged, repetitious sine wave, going from $1.70 to $2.30. Up and down, like clockwork.
Their product is cash. There is no cost of goods. They have good momentum--revenues and earning are increasing. Interest rates are low, true, but the housing market is booming, loans are being made.
They are in debt (duh!) but I don't think they are in any danger whatsoever of going bankrupt. In other words, a low risk in losing all your investment.
The downside is that since 2009 or thereabouts, the US Government is capturing all the profits, there are no dividends going to shareholders. There have been lawsuits filed over this that have lost.
I keep thinking I should pull the trigger when the price gets into the $1.70 to $1.80 range (almost there now) but keep wondering if I'm missing something here. Besides the no dividends to shareholders quirk, what, if anything, is the downside here?
In my stock screeners I came across FMCC, or Freddie Mac. (There seems to be more than one Freddie Mac stock, I landed on FMCC.) The year long chart of this stock looks like a ragged, repetitious sine wave, going from $1.70 to $2.30. Up and down, like clockwork.
Their product is cash. There is no cost of goods. They have good momentum--revenues and earning are increasing. Interest rates are low, true, but the housing market is booming, loans are being made.
They are in debt (duh!) but I don't think they are in any danger whatsoever of going bankrupt. In other words, a low risk in losing all your investment.
The downside is that since 2009 or thereabouts, the US Government is capturing all the profits, there are no dividends going to shareholders. There have been lawsuits filed over this that have lost.
I keep thinking I should pull the trigger when the price gets into the $1.70 to $1.80 range (almost there now) but keep wondering if I'm missing something here. Besides the no dividends to shareholders quirk, what, if anything, is the downside here?
