Fannie Mae (FNM) NewsBite - Analyst's Comments Boost FNM

Posted on Thursday, August 28, 2008 9:55 AM

Fannie Mae (NYSE: FNM) opened at $7.08. So far today, the stock has hit a low of $7.01 and a high of $7.12. FNM is now trading at $7.00, up $0.52 (8.02%). Over the last 52 weeks the stock has ranged from a low of $3.53 to a high of $68.60. Shares of FNM are trading higher this morning after an analyst at Lehman Brothers said in a note to investors that the company's capital and reserves are better than the market has perceived. Though he cut his earnings estimates for the homelender, he added FNM "should get through this difficult housing cycle with core capital remaining at or above the 15% excess capital requirement, which implies they don't need any more externally raised capital." Technical indicators for the stock are neutral and S&P gives FNM a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on FNM the stock seems like it could be a candidate for a September out-of-the-money bull-put credit spread below the 4 range. [ABR-Seven Summits Strategic Investments NewsBite]