Everyone Loves Fannie

Is anyone else as baffled as me about the optimism on Fannie Mae (FNM)? I know that some will argue that the price drop equates to pessimism but I don't agree. For more on my take, see the post - Fannie Gets Spanked. Since then the stock dropped 10 percent on 9/28 after more accounting concerns surfaced. However, brokerage houses seem to defend the stock the next day and it made up much of the drop. Of course, that was didn't last and the stock is back to its lows...

In the end, the stock is trading at levels not seen since 1997 yet nearly half of the analysts tracked by Zacks still give it a "buy" rating...