Who is buying Freddie Mac?

[hfojvt]

It seems to be the Chinese. :tinfoilhat:

Here's the five day chart of its price.
http://finance.yahoo.com/echarts?s=FRE#symbol=FRE;range=5d

Thursday's close: 33 cents
Friday: opens at 60 cents, closes at 55 cents
Monday: opens at 64 cents, closes at 85 cents
Tuesday: opens at 1.009 closes at 1.31
Wednesday: opens at 1.85

Clearly, in retrospect, it was a fantastic buy on Thursday, turning $1 into $6 in less than a week. Ah, the magic earning power of investing. It is interesting to me that the jump happens in after hours and the heavy volume is in the morning, with the price mostly slumping, or being stable the rest of the day, only to jump overnight again. That says investors in a different time zone to me - Chinese or Russian.

Or, it could be speculators trying to cover their short sales which are no longer allowed. I could not figure out why people were still selling when the price was 70 cents a share. This is a stock that was selling for $50 six months ago, so people are taking some huge losses when they sell. One week after I read a report from Citi saying that Freddie had sufficient capital to go for several months, the government seized it and the price fell overnight from $5 to about $1. I had 100 shares myself and thus lost, on paper, $600 in one night. Turned $7 into $1.

However, if the company is gonna survive and maybe once again be selling for $50 a share ten or 15 years in the future, then the logical response is not to sell, but rather to buy more. Especially since the government is basically guaranteeing Freddie's survival. The volumes have been tremendous too. At 100 million shares a day, theoretically the entire company changes hands every week since there are only about 500 million shares total.