WRONG, the GSE today command a much bigger part of the market sector for 30 year mortgages when they were trading at their highs of $70s. If you just compare the business size today to the business size they were in 2007, the GSEs are much bigger because some of their competitors got out of the business. In other words they control many more trillions of dollars then what they did then, hence their valuations is much bigger now then they were then. If the GSEs were not under conservatorship and were allowed to be true private companies, their stock would be trading in excess of $160 pps that's double where they were in 2007. You need to look at all the fundamentals and facts behind the GSEs and what they do today to what they did then. Look how fast they paid back the $187 billion they recieved from the government and still paid another $50 billion on top of that. Yes, much of that was from law suits settlements from the other big banks that riped off the GSEs. Why do you think the government past this illegal law in 2012 to sweep 100% all the money from the GSEs? They knew all these cases would yield billion dollars in revenue/profits to the GSEs. Now the minute these law suits are resolved and the verdict is on behalf of the plaintiffs, the GSEs (FNMA and FMCC) stock will skyrocket to the old highs of 2007 as it should be. The minute the GSEs are completely private and self capitalized and healthy these stocks will be as Patswill computed it, in excess of $300. Why you ask, because of the size of the market they control and the valuations they possess and the profit they bring to the shareholders. Plain and simple, this does not take a rocket scientist to figure out. We are talking about Trillion Dollars in valuation companies trading for $2.30 pps. If that is not a joke what is? FNMA & FMCC and their preferreds should be trading now over $100 if they were free. Think and reevaluate my friend you will see that I am right. Investing in FNMA and FMCC is a once in a lifetime opportunity. You are looking at these stock prices and not realizing what your missing if you don't invest in them.
GLTY.
