In a highly unusual situation, we are pulling today's recommendation of Fairholme (FAIRX).
In a case of really poor timing, a Federal court decision was announced literally at the same time this original recommendation was being decided on, ruling against the claims of investors like Fairholme regarding its holdings in Federal mortgage lenders Fannie Mae and Freddie Mac. These holdings represent a significant portion of Fairholme's holdings. This ruling has had a significantly negative impact on the share prices of Fannie and Freddie over the past two days, and by extension Fairholme as well. Bottom-line, if this had happened last week instead of this week, we likely wouldn't be recommending Fairholme.
As such, we are pulling that recommendation for now. We will re-evaluate the Large/Value category tomorrow with new momentum rankings, and will publish a new recommendation at that point.
We are very sorry for the potential hassle this creates. It is a most unusual situation.