If it’s has strong balance sheet y stock price is so low ?

The low stock price of Fannie Mae (FNMA) can be attributed to several factors beyond the company's strong balance sheet: 1. **Market Sentiment**: The stock market sentiment towards Fannie Mae may be negatively influenced by the perception of regulatory risks and the uncertainty surrounding its future after the FHFA conservatorship. This can lead to a discount in the stock price despite a strong balance sheet. 2. **Limited Trading**: Fannie Mae's stock is traded on the OTCQB market, which is known for lower trading volumes and liquidity compared to mainstream exchanges. This limited trading activity can result in wider price fluctuations and potentially lower stock prices. 3. **Ownership Structure**: As a government-sponsored enterprise (GSE), Fannie Mae's stock is not directly traded on a public exchange, which can limit its appeal to mainstream investors. The stock is only traded on the OTCQB market, which further limits its visibility and investor interest. 4. **Economic Conditions**: The overall economic conditions, such as interest rates and housing market trends, can impact the stock price of Fannie Mae. For example, higher interest rates can affect the demand for housing and mortgage products, which can in turn impact Fannie Mae's business and stock price. 5. **Dividend Policy**: Fannie Mae does not currently pay dividends, which is a common feature of stable, income-generating stocks. The absence of dividends may contribute to a lower stock price, as investors may prefer stocks with regular dividend payouts. In conclusion, while Fannie Mae has a strong balance sheet, the stock price is influenced by a combination of market sentiment, trading structure, ownership structure, economic conditions, and dividend policy. These factors can lead to a stock price that does not fully reflect the company's financial health.