Fannie Mae (FNMA)

[rekcusdo]

F&F warrants are basically worth the price of F&F shares - depending on when they will be allowed to be exercised by a 3rd party buyer. So they will likely go for the share price. Ahh but which share price? The pre-release price? Post release? Diluted? So much time has passed that the F&F situation is now pretty unlike all those other bailouts as far as valuing the warrants. I can't figure out the right price for them... I guess the market will decide when they get auctioned.

The ideal turnout if this were to happen would be that the price drops enough from the dilution that the company can buy the shares back as you indicated happened in other instances. Then, the company can retire those shares and drive the price back up.

Ideal situation, of course.