It’s very hard to come up with scenarios where they’re worth any money. There’s a tremendous amount of sentiment trading in general.
– Bose George, Analyst, Keefe, Bruyette & Woods
(Source: “Fannie, Freddie Shares Soar, Puzzling Analysts: Stocks Considered To Have No Value”, The Washington Post, August 25)
This is probably the best example of the kind of speculative mania driving the stock market right now. These stocks are purely speculative vehicles with no intrinsic value and yet traders are buying them up in massive volumes as a kind of bizarre call option.