Fannie Mae Preferred S (FNMAS)

[brandemarcus]

1. Remember when the common fell to near 1 earlier this year. What did that indicate? I think that was part manipulation and maybe someone had to sell to meet withdrawals. Could be the case with pfds right now.

2. Now that the pfd are dropping more than the common , people are trying to tell us the common is where to be. There was over one million shares traded today of Fmcki a 6.55% pfd going for 2.27. Could be a small part of Bradford's position. Now this was 26 in 2007, and it's not subject to 400% dilution. When the common fmcc hits 17 or higher, I will have to miss out. If they really are likely to pay 6.55% on 25 , I think it will be worth more than 26 today.

3. I know it's worthless with them passing on dividends forever, but they may want to pay dividends to the common someday. Any stock is supposed to be worth the present value of expected dividends-even common! If things get better for common, investors will start to anticipate the expected dividends that amount to 70% at current prices for this issue.

4. I disagree with your opinion on the economic and accounting, public policy about the gse's, however one can't ignore basic risk and reward. The preferred stocks are the better buys right now. You are right , today!