Fannie Mae (FNMA)

[contrarian bull]

Look like P holders sell and swich to C

I see that trend too. I agree with various comments that the odds of f&f ultimately being released is much above 50%.

If the odds are say 75% for release, and the expected stock value after dilution from the warrants is say $24 then the market value of common stock is $18.

Junior preferred have always had very high odds of ultimately being paid - let's call that now 100%.

So - ultimate value of common divided by current price around $3 is a ratio of 6.

Current prices for $25 junior preferred is around $6, with a market value of $25 giving a ratio of 4.

So people are moving from the 4x ROI to the 6x ROI. Makes sense...