Stocks Under $1: Fannie Mae, Borders Group and PokerTek (NYSE:FNM), (NYSE:BGP),(NASDAQ:PTEK)

Rough week for these once darling companies as Fannie Mae (NYSE:FNM), Borders Group, Inc. (NYSE:BGP), and PokerTek, Inc. (NASDAQ:PTEK) join the ranks as stocks under one dollar.

Its sad to consider that Fannie Mae (FNM) has become a 'penny stock' and this week Borders Group (BGP) feel under the $1 level on Monday.  Borders is starring right at bankruptcy or liquidation unless they get a something tangible going quick.

Borders (BGP) market cap is now under $52 million, slightly more than the $42 million senior secured term loan Borders is due to repay April 1 to Bill Ackman's Pershing Square Capital Management LP, which also holds more than 30% of its shares. Failure to pay will trigger a default on Borders' $1.13 billion credit agreement.

Fannie Mae (FNM) has been under pressure ever since Representative Barney Frank, whose committee oversees Fannie Mae and Freddie Mac (NYSE:FRE), said he will push to do away with the companies in favor of a different model for U.S. mortgage financing.

“The committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” Frank, a Massachusetts Democrat and chairman of the House Financial Services Committee, said at a hearing in Washington today. “That’s the approach, rather than a piecemeal one.”  

PokerTek (PTEK) shares continue to feel the heat and in the last 3 months its stock has fallen another 30% and is just above its 52-week low of 57 cents.  Despite the falling stock the company is pressing ahead, last Friday PokerTek announced plans to start marketing and distributing its PokerPro automated poker tables to markets in other countries.

“Significant opportunities exist to increase market share for PokerPro, particularly in the European gaming markets,” says Mark Roberson, PokerTek’s acting chief executive.

PokerTek is a software-development company that markets electronic tables for up to 10 players of Texas Hold ’Em. The company’s PokerPro system deals cards, displays them on private screens to the players and provides general information on a large screen in the center of the table. It also enables customers to set up accounts for betting and keeps statistical information on the games.  The system is designed to boost casino revenue by increasing the number of hands per hour and reducing poker rooms’ labor costs.