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FRE Freeplay

4.75
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Freeplay LSE:FRE London Ordinary Share GB00B010Q778 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 4.75 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Freeplay Energy Share Discussion Threads

Showing 51 to 70 of 150 messages
Chat Pages: 6  5  4  3  2  1
DateSubjectAuthorDiscuss
12/9/2002
15:19
YES. 9/11 over, the bad news spills out:

Shortly after the open, Fed Chairman Greenspan stepped over to Capitol Hill to discuss the economic situation. He told a House committee that the return to budget deficits could force interest rates higher over the long haul -- not a comforting message to investors already nervous about economic prospects.

TWIN PEAKS are tipsy today:

energyi
11/9/2002
13:52
PUTTING 2 and 2 together:

(1)
During April, May and June, 1.23% of mortgages - about 640,000 - were in the foreclosure process

(2) from above:
Equity of about 2%:


If we adjust for foreclosures (now and future), is there any real
equity in FNM and FRE???

energyi
11/9/2002
08:16
I'm trying order these stats a bit: (OFHEO report):

Amts.in Bn's of$ .Year: 2000. .Year: 2001.
................ FNM FRE Tot : FNM FRE Tot change Pct.
MBS Issuances... 334 289 623 : 515 387 902 +279 + 44.8%
MBS Purchases... 105 +59 164 : 180 158 338 +174 +106.1%
Pct. Purchased.. 31% 20% 26% : 35% 41% 37%
Net Issuances... 229 230 459 : 335 229 564 +105 + 22.8%

Total Assets.... ... . $1.1Tr. ... . $1.4Tr. .. + 27%?
Total Debt...... ... . $1.0Tr. ... . $1.3Tr. .. + 24.0%

The worrying thing is that the huge increase in issuance (as US home
owners rush to buy homes and refinance existing ones) has not been
matched with an increase in demand for MBS. Consequently, the two F's
had to increase the amounts they are holding on their own balance sheets
which are becoming massively over-geared (40:1).

They will need to raise new equity (many $billions?) which would depress
their share prices, or to sell/distribute MBS more aggressively. To increase
Distribution, they may need to raise rates, to make those securities more
attractive to the market. This will increase borrowing costs for home
owners.

The system is creaking under the pressure of these massive financings!
And they show no sign of slowing.

energyi
11/9/2002
07:52
I found the article:

Fannie, Freddie Bought $338 Billion Of Own MBS Last Year -Report
Monday September 9, 1:49 pm ET /By John Connor, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Fannie Mae and Freddie Mac continued to purchase sizable volumes of their own mortgage-backed securities last year for their asset portfolios, according to a new report by the Office of Federal Housing Enterprise Oversight.

"Fannie Mae purchased $180 billion of its MBS in 2001, compared with $105 billion in 2000, while Freddie Mac purchases of its MBS increased from $59 billion in 2000 to $158 billion in 2001," said the OFHEO report.

Fannie Mae's MBS issuances increased 150% last year to an annual high of $515 billion, exceeding issuances for the two preceding years combined, while Freddie Mac's MBS issuances rose to $387 billion in 2001, an increase of 134%, the report said.

The report said the combined assets of Fannie Mae and Freddie Mac rose to $1.4 trillion in 2001, an increase of nearly 25% over the 2000 levels of $1.1 trillion.

It said Fannie Mae and Freddie Mac increased their combined debt outstanding by 24% to $1.3 trillion in 2001, "using the funds to finance the rapid growth in their retained mortgage portfolios."

Fannie Mae and Freddie Mac are government-sponsored enterprises created by Congress to assist housing. OFHEO was established in 1992 to oversee the financial safety and soundness of the two firms.

The new OFHEO report, "Mortgage Markets and the Enterprises in 2001," noted that lower mortgage rates ushered in a wave of mortgage refinancings that helped send mortgage originations to an all-time high and facilitated extraordinary levels of Fannie Mae and Freddie Mac business activity.

Fannie Mae purchased $568 billion in single-family mortgage loans in 2001 and Freddie Mac purchased $393 billion, the report said. "Both totals were well over twice the amount each enterprise purchased in 2000 and represented each enterprise's highest volumes ever by a large margin," it said.

The report said the firms' financial performance set new records across the board in 2001.

"Fannie Mae's operating net income rose 21% to $5.4 billion, while Freddie Mac's rose 24% to $3.2 billion," it said. "Those gains extended long strings of rapid increases in the enterprises' earnings. Over the past decade, Fannie Mac's earnings have almost tripled, whereas Freddie Mac's have more than quadrupled."

The report also said that "over the past five years (1997-2001), U.S. home prices increased an average 36.1%."

energyi
11/9/2002
07:26
The other thing I read was that FRE and FNM had bought
over $300Bn of their own Mortgage Backed Securities over
the past 12 months. This is why their balance sheets are
inflating so much. I will try to find the article.

I do think the charts are beginning to look treachorous.
Yesterday's fall while the overall was rising was a Bearish sign.
I'm already short FNM, and hold puts on FRE and FNM, plus CCR and NCEN

energyi
11/9/2002
00:53
I guess it was the report "Delinquencies And Foreclosures Increase Slightly In Second Quarter 2002" ( from the Mortgage Bankers Association which may have caused the weakness today.

I'm watching with interest, but am looking out for a further drop in interest rates which may give the sector another fillip.
Underlying problems are considerable, both from potential losses and eventually rising interest rates.
Included is reducing capital base



which is a reflection of the additional mortgage securities which they keep on their books.



Fannie watch commented:
"In the third quarter of 2001, the value of Fannie Mae's shareholder equity fell by $10.6 billion, a result of risky hedging in the derivatives market. Fannie Mae's debt/equity ratio is now 53:1, five times more than the average for commercial banks. If Fannie Mae were regulated like a commercial bank, it would face serious risk of closure."


-----------------------------------------------
Some more sources:
Very good overview
But now most of their revenues come from mortgages that they buy and keep on their books. They make money when the interest paid on these retained mortgages is greater than the interest that Fannie and Freddie pay out on the borrowings they make to finance the mortgage purchases.

But it would be wrong to relax. Fannie and Freddie look very much like huge hedge funds that are continuously betting on prepayment risk. Like other large hedge funds, they may get it right for years and then have one terrible year.



Institutions are an object of hate from right in politics for their non-market functioning:

Greenspan Paints Fannie and Freddie With Enron Brush

By Rebecca Byrne
Staff Reporter
04/23/2002 03:10 PM EDT

Enron's use of complex derivative transactions and its ultimate collapse have provided Federal Reserve Chairman Alan Greenspan another angle from which to attack government-sponsored mortgage firms like Fannie Mae (FNM:NYSE - news - commentary - research - analysis) and Freddie Mac (FRE:NYSE - news - commentary - research - analysis)

"He's saying, if you're as interested as you seem to be in the risks that Enron created, then you should be equally interested in the risks that these GSEs [government-sponsored enterprises] are creating. You should not be complacent about what is occurring here."


A defence from Fannie Mae, they have been very succesful so far and shouldn't be underestimated.
Fannie Mae: Article a reader 'disservice'

magic
10/9/2002
21:16
current open interest PUT/CALL ratio on FRE is at 0.51 which the joe bloggs 'punters' are pretty bullish.

a little more fuel for the bears

fredbear
10/9/2002
20:47
Sure looks like its going to rollover:


And FNM looks worse!

energyi
10/9/2002
16:06
(From USA thread):
Those 5-waves may be done now.
If so, there's potential for a sharp drop.
Watch for a break of 8500 as a sign its coming.
Many stops likely to get hit around those levels.

The Twin Towers of Debt (FNM, FRE) are wobbling a bit today:

energyi
05/9/2002
07:30
FRE was up yesterday, and so was FNM.
Might be a good day to consider a short

energyi
04/9/2002
23:43
With the S&P 500 rolling over the last couple of weeks there are some good low risk shorts coming out of the woodwork.

Freddie Mac's been trading sideways for the past 18 months and has started breaking down. The rally from last month's row has run out of steamand I reckon a move sub-55 is underway. The $65/70 zone looks like it should continue to be a barrier.

LC






Last 10 Days, Hourly

limpsfield chartist
04/9/2002
15:05
I agree whole-heartedly.
You should read the DEBT threads for more fundamental reaons.

This is the beating heart (along with FNM) of the US Property bubble

energyi
04/9/2002
14:06
I sold these yesterday ( more on fundamental grounds as possible big trouble over US property in the next months )

Must be getting good at charts as well

Spread less than 0.1% sometimes

[ EDIT, sorry wrong company, actually sold Fanny May but situation very much the same, same business and similar chart so will leave the post in ]

alexx
28/5/2002
10:41
Work it out for yourself arfie. I does not apply does it? You cannot trade in sterling.

js

jacsom
28/5/2002
09:29
What is the current Freeserve shareprice in pound Sterling ?
arfie
20/12/2001
11:52
last quote i looked at today was 1 NAD @ 5.625 euro. value of euro to pound approx 0.62p therefore 1 NAD = £3.48. Remember though that your FRE shares were not exchanged on a one for one basis - I'm still showing a loss but am prepared to hold a while longer for a recovery.
GW
i don't think you can get a quote for NAD via advfn. I use another on line dealer that will trade in European ( Paris ) stocks as well.
the symbol is NAD.EUR.JPA

scarletsman
20/12/2001
11:29
thanks for reply
Also where can i find the value of these shares and what is the comparison in pence now compared to when I bought them for 217p???

pallys
19/12/2001
00:14
i bought £6000 worth of these shares over a year a go for 217p each. Why doesnt there value ever change from 95p, i have been away for a while and dont know what went on. I know wandaoo bought them cause i got all these letters but never had time to read them
help ????????? i need to know what their worth i have been searching but found i need to look at wandadoo share price mmm....

pallys
19/12/2001
00:05
does any no why their share values never changes as I bought £6000 worth when they were about 217p ???????
pallys
18/12/2001
15:48
What is the symbol to find them on ADVFN??

Many Thanks

guppyworld
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