Fannie Mae (FNMA)

[contrarian bull]

what is good for fannie n freddie is good for both

But what's bad for them is not necessarily bad for both. All this talk about spreading the mortgage business over banks and other entities would mean that by the time f&f are released they may have more competition, with their mortgage volume shrunk considerably.

You might end up with a F&F that makes 1/10th of the profit they do today - and thus the target share price might be only in the $2-10 range. But since they do show at least some profit the junior preferred shares will be worth their full value.

I think this might explain some recent rotation into juniors from common...