What do you think of the stock FMT, there's a rumored buyout, but the stock keeps going down. Should i hang on to it, buy more, or sell it now. The stock is supposed to go up to $28, do you think it will. Any advice?
2007-03-02 12:09:43 · 6 answers · asked by 1234 1 in Business & Finance ➔ Investing
Here is the problem. Sub prime mortgages. FMT will probably not do squat until 2 years form now at the earliest. $28 is bs. Wishfull thinking for the most part. The company might very well report a loss in 2007. It will most likely be from the sale of their sub prime mortages, assuming they can find a buyer. Whatever buyer they find will not offer them anywhere near the book value of the loans. If you purchased in the $20s you are in a world of hurt.
I certainly would not buy more. That comes under the heading of chasing bad money with good. That is a definite no no. Hold on? If you have a very strong stomach. You may wind up loosing everthing. But in 10 years time, who knows? The company may become a good investments.
But to tell you the truth, I can not imagine anything worse than sub prime mortages in the California market.
2007-03-02 14:15:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
FMT - fundamentally is not very strong. It's in the regional bank industry which is doing not very well at the moment. Institutional money is flowing out of it and its price rank is pretty bad. Technically, this stock is not in my top 5000 or so either. It's been below its moving averages and until it shows some signs of life, I'd be much more inclined to short the stock.
Now, if you want to take a flyer on a buyout. Take a SMALL % of your money and throw it into an out the money option. Don't risk your hard earned money on a downtrending stock. ;-)
2007-03-02 21:28:24 · answer #2 · answered by Yada Yada Yada 7 · 0⤊ 0⤋
Get out ASAP sell sell sell sell. youve already lost enough all the directors filled form 4 which means they are about to sell. When you are about to board a ship and every one else is jumping off. Would you get on that ship?
2007-03-02 20:26:09 · answer #3 · answered by franksprung 3 · 0⤊ 0⤋
Mortage company "exoctic mortgages" Market finally catching on......
GET OUT NOW!
2007-03-02 21:02:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
go to Yahoo finance for advice
2007-03-02 20:12:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
solid stocks, down now, should go up.
2007-03-02 20:27:24 · answer #6 · answered by teedub 3 · 0⤊ 0⤋