Volume Spike Investor

It is often hard to get excited about penny stocks of former giant favorites.  But excitement is the case this morning in Freddie Mac (NYSE: FRE) and even in Fannie Mae (NYSE: FNM).  Freddie Mac (FRE) did not exactly have pretty earnings on Friday, but shares soared on word that the GSE mortgage lender does not need to ask for more financial aid from the U.S. government. Shares closed at $0.74 on Friday and are up huge at $1.32 in early trading at 7:47 AM EST.  Fannie Mae (FNM) is deemed the wicked step sister of Freddie Mac, and it is surging along with it.  Fannie Mae closed at $0.66 on Friday and is trading up around $0.86 this morning at 7:47 AM EST.  These volumes are a mere pittance of what will be seen, and we’d predict that a 100 million shares in each could be seen today.

UPDATE 8:40 AM EST: FRE is at $1.38 on over 7.9 million shares; FNM is at $0.90 on over 9 million shares.  Again… expect a 100 million share day in these names.

-JON OGG