Fannie Mae ? Stock Performance Analysis
BUS 533
Introduction
For my stock analysis I have chosen the FannieMae Company's common stock traded on New York Stock Exchange (NYSE) and listed under a ticker symbol FNM.
Even though the Fannie Mae's common stock is also traded on the Pacific Exchange and the Chicago Stock Exchange, I will only be analyzing the stock performance data collected from the NYSE during the eight business weeks from October 2nd, 2006 through November 24th, 2006.
While analyzing the data summarized in the Table 1 further below we can make a conclusion that the Fannie Mae stock is a relatively stable stock and therefore could be a good, stable investment at this time. Looking at the numbers reflecting the daily performance of the stock (Open-Close and Day Hi-Low) we could see that the daily fluctuations of the stock were not high and the general trend of the Fannie Mae stock is moving up in the positive direction. Graphs 1 and 2 are reflecting the Open-Close and the Hi-Low performance of the stock for the 8-week time period.
There are always numerous factors that influence the stock market and a single stock performance. One notable event from the data below is the price jump on November 8th, 2006 - stock price went up and almost reached US $62 per share (!). This was widely interpreted to be in reaction to the Democratic win in Congress. With a Democrat-run Congress, most analysts say that a strong bill limiting Fannie Mae's (and its closest competitor Freddie Mac's) portfolio size is now almost certainly dead, whereas it had been thought of having a decent chance of passage in a Republican Congress. This is another proof of how any changes in the politics and the ...