Thursday, January 24, 2008

Can Indymac stay Independent?

Indymac (IMB 5.43) rocketed almost three points today before settling back. Takeover rumors, and the temporary lifting of the conforming limits for loans from Freddie and Fannie Mae to $729,750 until the end of the year spurred the buying.

IndyMac can refinance the negative amortization loans, and then sell them to Fannie and Freddie Mac. They got thrown a lifeline!

The stock can trade to double digits!

No comments: