All You Need To Know This Week: FNMA, FMCC, TSLA, YHOO

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Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA),  Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) are riding higher today as Gretchen Morgenson wrote a new NY Times piece, Freddie and Fannie are Held CaptiveThe piece looks at more unsealed documents available here, which are positive for Fannie and Freddie investors court cases. A key email from Jim Parrott on the day of the Net Worth Sweep said that the change was made so that the companies couldn’t “repay their debt and escape as it were.” They also note that the Treasury modified the terms when they learned that Fannie and Freddie were about to enter golden years of profitability.

An exciting week for Tesla Motors Inc (NASDAQ:TSLA) involved a Goldman Sachs Group Inc (NYSE:GS) report that the company was upgraded from Neutral to Buy. The firm upgraded the shares to a 6 month price target of $250 noting 22% upside.  Tesla shares have been aggressively priced to say the least and the upgrade timing was suspicious to say the least. Goldman clearly appears to be up to its old tricks again and shortly after the upgrade Tesla announced a share offering of $2 billion, $1.4 billion of which will fund production. The share offering will be led by Morgan Stanley and… yes Goldman Sachs. This is the kind of thing that makes people distrust Wall Street.

Tesla certainly picked an excellent time for a stock offering given their shares are richly valued to say the least and the company will continue to need funds to execute it’s ambitious Model 3 ambitions. It makes perfect sense to continue to ride the euphoria and cash in given the company probably does not generate the capital necessary to pull this off. Many questions surround Tesla’s ambitious Model 3 goals as pre-orders have skyrocketed to over 370K. Reuters reported today that suppliers are questioning Tesla’s production goals for the Model 3.  The company intends on beginning deliveries in late 2017.

A pair of conflicting reports on Yahoo! Inc. (NASDAQ:YHOO)’s core business sale appeared Friday.  One indicated sources say the bids are $2 to $3 billion less than previously expected followed by a CNBC report the report on lowball Yahoo bids is completely wrong by David Faber. It would seem someone is trying to game the situation publicly.

Lastly Apple Inc. (NASDAQ:AAPL) which hit 52 week lows last week rebounded this week by over 5 percent as filings show Berkshire Hathaway had a stake worth just south of $1 billion. Reports indicate that it was not the work of Warren Buffett but either Ted Weschler or Todd Combs, two men that Buffett has hand picked to invest portfolios for the company.  The position would represent solid conviction for either, who manage an estimated $18 billion combined.

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