Is it the return of financial zombie stocks?

One of the most curious phenomena of the financial crisis has been the rise of zombie stocks. Washington Mutual was essentially driven into the arms JPMorgan, but the stock continued to trade furiously long after it had fallen to penny stock status. The same goes for Lehman Brothers.

Right now, Fannie Mae and Freddie Mac have the dubious rank as top financial zombies. They trade at less than a dollar but day traders have whipped up their volume to shocking levels. Since June, volume in Fannie Mae's stock has hit 31 million shares a day, more than triple the average for Goldman Sachs shares, reports the New York Times.

This is accounted for mainly by day traders; the big institutions have long since shunned the stocks. Few analysts still cover Fannie Mae's stock.. The big question for the speculators is whether the solutions that will be discussed soon will be enough to goose the stock a few cents, which may amount to a decent profit, if you can exit the stock just right.

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