I am the biggest whale buyer here. Just picked up 24k shares at $1.51.
Cant get them any cheaper.
GLTA FNMAT FANS.
Incredible insight CBS to make this call way back then.
A lot of P holders are running for the hills.
Yep. They're all over the place.
How many more junior preferred (junk) shares do moron hedge funds have to sell? Quite evident there are more to sell with all the JPS pumpers present on this board.
Fitch Ratings and other ratings agencies have clearly stated JPS Are JUNK!
Not only that, but Freddie Mac’s own website agrees ; stating it’s junior preferred stock is junk.
Junior Preferred Stock
Moody’s - Rating - Ca
Standard & Poor ‘ s - Rating - D
Fitch - Rating - C/RR6
JUNK, JUNK, JUNK,...!
Where were u in 2016 when Mnunchin has said the same thing? Last time, fannie mae rallied for weeks and then dropped to investors disappointment. Many investors have sold and lost monies due to a long wait. Mnuchin has said it again inevitably to another empty promise, especially when the democrats are retaking the house. It wont happen I can guarantee you that.
No agencies or no white house administration including pres Trump will want to give up the golden egg. all these government agencies will want to keep Fanny and Mae to be under conservatorship in order to use its billions of dollar to fund their political agendas, anything from tax cut, medical programs etc....Dont be fooled and lose your money the second time!
HUGE SELLOFF BY MAJOR SHAREHOLDER
Bruce Berkowitz reports:
The St. Joe Co (JOE) - 22,730,687 shares, 54.55% of the total portfolio.
Federal Home Loan Mortgage Corp (FMCKJ.PFD) - 16,387,268 shares, 14.5% of the total portfolio. Shares reduced by 16.21%
Fannie Mae (FNMAS.PFD) - 14,656,509 shares, 12.78% of the total portfolio. Shares reduced by 22.59%
Vista Outdoor Inc (VSTO) - 3,279,900 shares, 8.45% of the total portfolio. Shares reduced by 22.33%
Spectrum Brands Holdings Inc (SPB) - 376,540 shares, 4.56% of the total portfolio. Shares added by 82.61%
LAWSUITS ALL DEAD
All P SERIES are dead money.
THE SEC HAS PROBIDED FORMAL AND WRITTEN DOCUMENTATION
please provide references or is it just your speculation?
Possible the Preferreds are cancelled by Fannie Mae? The Company has the right via shareholders vote to do this. And since now the Conservatorship does not require a vote Mel Watt could quite easily cancel the Prefs shares at his own discretion.
It actually makes a lot of sense to do it now while in Conservatorship.
This could also be the reason they are dropping. As for the Moelis plan just because it was written by a lawyer does not make it any better or worse than the AJ Plan. Look at the repercussions of each plan and make your own decision. Keep in mind the warrants are illegal as confirmed in writing and in hand by the SEC.
Is there a site where I can get info on the FACE VALUE of all the Fannie/Freddie flavors?
$40 million buy FNMAT $$$$$$$ Nov 17, 2014
Tell FHFA Your Thoughts On Fannie & Freddie Affordable Housing Goals
October 15, 2014
Tell FHFA Your Thoughts On Fannie & Freddie Affordable Housing Goals
The Federal Housing Finance Agency is asking for public comment on housing goals for Fannie Mae and Freddie Mac over the next three years. This is a routine "ask" for federal agencies, which are required to solicit public comments for various rulemaking processes and such. It's one of those many functions of government that the general public never really thinks about. But these comment periods are an important way for citizens to make their voices heard. Do bureaucrats read the comments? We certainly hope so, and we would encourage everyone who has a vested interest in Fannie and Freddie to take advantage of this opportunity. The comment period closes Tuesday, October 28.
Check out Mortgage News Daily for a good write-up on this. You can submit your comment via webform here. The agency asks that if you use the web portal that you also email your comment to them at RegComments@fhfa.gov and include in the subject line, "Comments/RIN 2590-AA65."
Your comment doesn't need to be long or complex or contain reams of data. And if you do submit a comment, let us know! We'll reprint comments from Investors Unite members here on the blog so be sure to email your comment to us after you submit it.
We have already submitted our comment. Click here to read the full comment; here's an excerpt:
"Affordable housing, as a matter of policy, is an admirable goal for the federal government. There are countless families and individuals working hard to save up enough for a down payment on a home. But we're concerned about recent proposals that would wind down Fannie and Freddie, because these institutions are an indispensable part of making home ownership affordable. Proposals to eliminate that GSEs would be disruptive to mortgage markets, threaten home ownership, and be at odds with the responsibilities of FHFA as the conservator of these institutions under the HERA statute."
… "The government's conservatorship was not created to be longstanding or permanent. It could have placed them into receivership but did not. HERA, passed by Congress and signed into law by the President, prescribes FHFA's duty to conserve value for shareholders and to nurture the institutions back to profitability. Shareholders have rights under the constitution, and FHFA has responsibilities under the law – and both preclude the Treasury's decision in 2012 to take 100% of profits on an ongoing basis, which permanently undercapitalizes the institutions and does not allow investors any return on their investments.
"With this as context, Investors Unite believes the best way to ensure the availability of affordable housing is to immediately stop the illegal Third Amendment Sweep and allow the GSEs to begin rebuilding their capital base. Eventually a reformed Fannie and Freddie should be released from conservatorship. None of this would prevent the government from making a substantial return on its loans to these institutions: Besides the principal pay-down through excess dividend payments that has already occurred under the sweep, the U.S. owns 80% of the equity through common stock, which some have estimated to be worth more than $200 billion alone. This would be a huge return for the taxpayer, and would actually produce funds that could be placed into an affordable housing trust to help troubled borrowers."
I think I heard a pin drop.
Heavy criticism for GSE recap proposal
"In the long history of bailout deals, no heist of the U.S. taxpayer would approach this one in cynicism and chutzpah," writes Jonathan Laing of Bruce Berkowitz's buyout plan for Fannie (FNMA +5.7%) and Freddie (FMCC +5%). One analyst calls it a "three-card monte" scheme in which the preferred holders want taxpayers to pay them off at par, or turn over the keys to the companies wildly valuable operations for little more than a $17B rights offering.
Yes, Treasury will have realized $187B in dividends from the GSEs by year end - equal to the amount of the bailout - but that's "merely fair recompense for the enormous risks taxpayers took." Also, more than $80B of the $187B is the write-up of deferred tax assets - it will only be realized if the companies operate profitably for many years, says Laing.
• Fannie Mae, Freddie Mac to Sell Insurance Biz - Analyst Blog
Fairholme Capital Management LLC, a Miami-based equity fund manager, has recently declared its intention to acquire the insurance businesses of Freddie Mac ( FNMA ) and Fannie Mae ( FMCC ). The move forms part of the company's plan to expand its business in the insurance sector. The deal will come in exchange of equities worth $52 billion to be issued by the fund manager.
Underlying the proposed plan, Fairholme Capital Management will exchange Fannie Mae and Freddie Mac preferred stock worth $34.6 billion. Additionally, the company will raise a sum of $17.3 billion from preferred stockholders and rights offerings.
We believe that apart from generating inorganic growth, the acquisition will have other benefits for Fairholme Capital Management as well. It is worth noting that Freddie Mac and Fannie Mae were troubled mortgage lenders that were bailed out by the government during the financial crisis and preferred stock worth $34.6 billion was floated in the market for the recovery.
Fairholme Capital Management is the largest holder of these preferred shares. However, the future of these shares seems uncertain as the government plans to liquidate Freddie Mac and Fannie Mae in the near future. Both Freddie Mac and Fannie Mae's performances have improved after the financial crisis and therefore the preferred stock buybacks would actually result in lower profits for Fairholme Capital Management.
Hence, to prevent this, Fairholme Capital Management has proposed the aforementioned recapitalization program of converting the preferred stock into equities. This will be similar to the government's planned liquidation program for Freddie Mac and Fannie Mae in the near future. Moreover, it will relieve the government from regular supervision of these firms.
The deal is subject to approval from the Federal Housing Finance Agency, U.S. Treasury Department and other investors in Fannie and Freddie.
At present, both Freddie Mac and Fannie Mae have a Zacks Rank #2 (Buy).
Read more: http://www.nasdaq.com/article/fannie-mae-freddie-mac-to-sell-insurance-biz-analyst-blog-cm301261#ixzz2kf3fLmgr
I think this FNMAT and FNMAS are the only ones to play anymore, if they ever do get made whole, prefs will get first dibs.. thus why hedgies are buying preferred. Notice the complete meltdown on commons? That never happened on these preferred shares, both hardly took a step back.
What about fmmah
Hard to say, from the info I checked out all over end of last month and there were radical values.
There were some good convos here on the matter
FNMAT much better play in my opinion, FNMAS too much manipulation this rolls right up i'm still holding my nice 4500 at 4.75 and still looking for 7
I like prefs as well as commons because one can see from the chart it's been a slow and steady climb. Commons have been manipulated to the bone with daytraders.