Quetsion on buying stocks?

Question

hi

am thinking to buy some stocks of fannie mae and freedic mae now as the prices are very low now

please suggest is it a good idea to do it

Answer 1

Why do you suppose the price is very low?    

Answer 2

In general the only way people make money is buying low and selling high.  Easier said then done.  

Answer 3

It's always a hard decision - on one hand, there IS a reason why these stocks are so low, the risk is very high and many people don't expect these companies to survive in their present form. On the other hand, if they do survive you could make a pretty hefty profit.

My personal philosophy about beat-down stocks is that unless the underlying company is strong (which these are not), there are other opportunities to make money on stocks without the excess risk.

Answer 4

For about the same price I bought Ford, which I think will be around in a few years.

Answer 5

right now it is a bad idea, yes the price is low and it will keep droping for a while  

Answer 6

You are taking a HUGE risk. If this is money that is really critical for you to keep than don't invest it fannie mae and freedic mac. The stock might go to zero where the equity is wiped out. I would not risk it. At least wait 'til Thursday.