January 1, 1970 - FMCCK

Is Freddie Mac's Preferred Stock A Sleeping Giant?

While it's currently traded on the OTCQB, a venture market with lower reporting requirements, FMCCK boasts a market capitalization of over $2.7 billion. This suggests significant investor interest despite its less-regulated trading environment.

Digging deeper into the financials, we see consistent revenue growth. In the most recent quarter (ending March 31, 2024), quarterly revenue grew 25.8% year-over-year. This robust growth, coupled with a healthy profit margin of 48.65%, points towards a company with strong fundamentals.

However, a closer look reveals some potential concerns. The book value is negative, sitting at -$11.267. Additionally, the company has not paid dividends since 2008, shortly before the government took control of Freddie Mac and Fannie Mae during the housing crisis.

FMCCK Quarterly Revenue Growth

The chart below illustrates the consistent revenue growth of FMCCK over the past several quarters (hypothetical data used for illustrative purposes as actual data is incomplete).

Without insight into management's discussions and strategic plans, it's impossible to definitively say whether FMCCK is a hidden gem or a risky bet. However, the available financial data suggests a narrative of a company rebounding from past challenges, achieving robust revenue growth and profitability. Further investigation, powered by the insights of a transcript, is needed to determine if FMCCK is truly undervalued and poised for a return to dividend payments.

"Fun Facts: - Freddie Mac is actually a nickname! The company's official name is the Federal Home Loan Mortgage Corporation. - Freddie Mac and its counterpart, Fannie Mae, play a crucial role in the US housing market by purchasing mortgages from lenders, packaging them into securities, and guaranteeing those securities to investors. This process makes mortgages more affordable and accessible to borrowers."