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David Dreman: Stick to Your Guns, Fannie

November 11, 2005 | About:

With all the troubles that Fannie Mae and Feddie Mac are facing, David Dreman is urging investors to stick to them: If you own either of these stocks, hang in there. If you don't, buy them. They're cheaper. Fannie Mae trades at an estimated 6 times trailing earnings, giving you a margin of safety even if earnings are restated downward. Freddie is at 15 times earnings.


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