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Federal Agricultural Mortgage Corp. (NYSE:AGM)

stock market
photo by Bob Jagendorf

I don’t know about you, but I didn’t see this coming. Federal Agricultural Mortgage Corp. (NYSE:AGM), the mortgage lender for farmers rolled out last week like one of those storms that you don’t get a chance to run for cover.
On Monday the stock opened at $3.10 after taking a plunge into the abyss only to come back and hit the high of the week on Friday 1:05pm of $10.87. If you do the math, that is a gain of 350% in just 5 days. If you were lucky to catch it Monday afternoon at $2.61, you would actually be up 415% for the week.Those are the type of penny stocks that we dream of finding, unfortunately I missed the boat. I noticed the company on Wednesday afternoon after it jumped up 30% during the trading day.
I didn’t take the time to research it since knew that it was a financial play as well as a agricultural one too. I thought that since the stock was trading in the $29 range in the middle of September, I missed the quick ride back up on the fact that it was oversold and with the “Invest In America” bill issue going on I didn’t want to take the chance.
On Wednesday it was trading in the low $6 range. If I jumped in at that point, I would have still made a cool 75% for two days of holding the stock.
The reason I bring this stock to light is the fact that this turmoil in the stock market is something that the average Joe needs to steer clear of or you could be betting the farm on something you didn’t have time to research and do your due diligence on. Yes, we all want to hit it big on a penny stock or a established one like AGM, but it’s not worth it when you haven’t done your homework. The Stock closed for the week at $8.21 and in after market trading it went back up to $9.95, so who knows what to expect, especially in these trying times.

*DISCLAIMER* By the end of the day on Friday, I did buy a position in AGM. I presently own 100 shares.
P.S. Want to learn more about the stock market? take a free two week trail with Jim Cramer from TheStreet.com

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