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IPO sounds bad. That would mean new shares get issued. Where does that leave us current shareholders, Cancelled?
Don't do IPO. Quick, someone file another lawsuit, we can't allow this to happen!
Is that why? I thought it was just because they have to upload their financials as per SEC rules. Otherwise, we'd be trading with a "D" designation, and then ultimately be de-listed to pink sheets.
But yeah, I like the sound of up-listing WAAAAY better. Whoo hooo! We made it guys. Up-list next week confirmed by Camaro and CBS -- definitely some of the most trust-worthy guys on the board.
Just received the following email from my broker (Ameritrade):
Hello [removed for privacy]:
We are writing to inform you of a buy-out that's currently being offered to certain shareholders in a class of stock that you are invested in. Current holders of FNMAS, among other classes of Fannie Mae Preferred Stock, are being sought by a private investor that is seeking to make a large investment in Preferred Stock of Fannie Mae. The current price offered for FNMAS is $12 per share. If you are interested in this offer, please contact your local office to initiate the transfer process and the cash will be deposited into your account.
You must be talking about the Warrants! I don't think I've seen any mention of Treasury buying any stock in FNMA/FMCC. Nor have the companies bought back any stock, as per HERA.
I think you're confusing companies or something. And all that money goes to Sr. Preferreds first, there's nothing left for Jr. Preferreds or Commons
Has anyone else received a call from their broker? They are currently offering .50 a share for my FNMA. I told them to take a hike. But they said there are lots of rumors circling the inter-webs regarding Berkowitz working closely with Corker/Warner to make sure Preferred are made whole while Commons don't see a penny. That would be terrible! Please someone file a new lawsuit to make sure this doesn't happen.
Salt the Earth killed it or just did well? Hotel California was a great comment, but it's always tough to get a good read on these judges. Just as everyone thought we had Ginsburg in the bag after his "Salt" comment. Unfortunately, the legal defense of "you can't do anything about it as per HERA" still seems to be the prevailing factor, even among legal minds.
Hopefully these judges see through the BS and will at least research the facts a bit more and press for additional information from both legal teams.
There isn't an advantage to cancelling everyone out, other than to prove the point that the Government [almost] always wins. They likely don't want to reward the hedge fund speculators (Commons and Preferreds alike). Easier to cancel everyone and say "we continue to win in court, keep trying."
re: new litigation-
At what point do the big funds stop throwing away 10s of millions of dollars in lawyer fees when we've lost every case? Who's going to even try to challenge them when there are about 20 different court cases all with the same ruling that FHFA/Treasury will use as precedent -- "HERA says you can't sue us"
I don't see anyone else making a serious court challenge once the Big-3 cases have all run their course and lost.
That's semi-accurate. It was sent back to Lamberth to further investigate (Perry case). Nothing has been ruled on or finalized. My reference was simply that if there were damages to be awarded, it would only be for the difference in Strike Price of the Warrants versus what Commons were trading for at the time the warrants were issued (can't recall, but probably around .20). So if any damages are awarded, it will be a pittance to what anyone expects, especially knowing Lamberth is out to make sure shareholders get nothing anyway -- "here's .20 for every share you own, now leave my court you pesky speculators"
Indeed, that's what I was referencing yesterday. However, the cash gets counted towards the Treasury's Sr. Preferreds first, then Jr. Preferreds, then Commons. So in actuality, it's ZERO towards any shareholders other than the Treasury.
If we can get rid of those Sr. Preferreds, then that's maybe enough for .50 for each Jr. Preferred holder. Which still leaves Commons with ZERO unfortunately.
Still, Freddie is positioned much better than Fannie. If I were to gamble on the Commons, I would be buying Freddie and not Fannie.
Indeed. But they dream a little higher up on the capital structure. Air is thinner up there, can breathe easier.
Commons are at the bottom of the bottom, possibly underground at this point. It's hard to sleep lying six feet under.
But there is hope! As long as Berkowitz keeps the fight alive, then we may still be able to get those pesky Sr. Preferreds cancelled. If not, then the only GSEs I see are ones with entirely new shareholders (ie: not current Common or Preferred holders).
Not when all of that $3B goes to pay off the Sr. Preferreds in Receivership. Oops, did you forget about that?!?
Yeah, that's not going away. And since no one is fighting it in courts, the Sr. Preferreds stay. Looking very likely now with Collins done for and Fairholme next to get the axe. No one left to fight to get the Sr. Preferreds relinquished.
All eyes on Lamberth, and we know how he feels already. Any damages he awards to pre-conservatorship holders might get .15-.25 per share (the difference from where Commons were trading versus what strike price the warrants were issued at). If you bought after, You Get Nothing!!
Steady rotation from Commons to Preferreds today. Probably on the news that Collins case yesterday was a disaster (Government clearly won oral arguments). With Sweeney ready to pound the dagger into the heart of Berkowitz, I'd say Receivership appears to be looking more and more likely.
Are there any Court cases that will save just the Common shares? Otherwise, it looks like everyone is about to lose.
At least the Government won't get to exercise their Warrants after all. Everyone gets wiped out!
Not a recco
The rotation from Commons to Preferreds continues. Preferreds up and Commons down significantly (and the technicals for Commons keep signalling more downside to come). Glad I'm on the right side of this rotation.
Preferreds = STRONG BUY
Commons = STRONG SELL
Not a recco
Considering how detailed the Moelis Plan is, I don't have a doubt that they've already prepared the required documents to be signed off on by the FHFA and Treasury.
Hopefully there isn't any confusion over "May" or "Shall" in those documents though, that wouldn't be good.
Oh, sorry. Thought it was a sarcastic question. Answer is simple: Any capital raise will be dependent upon the FHFA/Treasury fully agreeing to end their shenanigans (NWS in particular) and also deem the Sr. Preferred paid off in full. Once it's agreed to and Conservatorship is deemed to have run its course, there will be Wall St money lined up for miles to throw their money in the ring.
Unfortunately, that likely means more Preferred shares, which means more dividends, which means less earnings to count towards Common's earnings per share.
Those elitist Preferred holders are always negative. Constantly talking about Cancelling Common shares and how they are higher on the capital ladder. It's a bunch of BS. Everyone knows that Commons have voting rights and therefore can cancel Preferred shares at any time.
Say NO to the Mnuchin Dilution Solution!
/sarc
Not a recco
Moelis incoming in 3, 2, 1 ...
I'm more excited for Freddie than I am for Fannie. Looking over the numbers, Freddie is positioned much better financially. While I don't think they will free Freddie and leave Fannie in Conservatorship, I do think Freddie will perform significantly better than Fannie once the Net Worth Sweep ends.
If Commons don't get Cancelled (that's a BIG If!!), then even under a Utility Model, Freddie should be worth at least $13-15 within the next 5 years. Let's do it!
Was anyone able to attend the Oral Arguments in the Collins case today? I'm hearing lots of positive developments occurred and things are looking UP!
Not a recco
I disagree, but understand your negative sentiment. Moelis is better than Average Joe, MBA, and all the other plans combined. It's the only route forward unless Treasury randomly decides to give back 10s of billions of dollars.
However, at current prices, Moelis offers more up-side for Commons than Preferreds, so Commons are a better buy. Assuming Moelis gets implemented, it's a Win-Win for all GSE shareholders. Any other plan is Lose-Lose for all parties.
Let's work together! Go Moelis!!
Actually, the Circulars for Preferred shares show they do have a Vote. For anything to happen to Preferred Holders, they get to cast their vote and a 2/3s majority must happen in order for anything to pass. Better buy some Preferreds if you want to cast your vote!
We need to tread carefully and work together to not spread the false narratives being pushed by a few posters here.
Teamwork! Moelis!
Moelis is the best plan put forward thus far, and it comes with lots of juicy details for how to get the GSEs from Point A (Conservatorship) to Point B (out of Conservatorship).
The Moelis plan does consist of significant dilution to Common shareholders, but it's the only workable plan out there. And Common shareholders will do even better than Preferred shareholders from current prices.
Everyone wins! GO MOELIS GO!!
Mnuchin Dilution Solution so Commons_[don't get]_Cancelled
Not sure what you mean. Are you referring to the only workable plan out there (Moelis)?
How will lowering the G-Fees back to historic norms affect profitability? How will turning the GSEs into Utilities alter profitability? These are questions Common shareholders should be asking
One day closer to Moelis. Thank goodness this is almost over. Looking forward to the Mnuchin Dilution Solution. That's significantly better than cancelling the Common shares (ie: zeroing them out via receivership).
I rest easy knowing my shares won't be cancelled. Common holders on the other hand have shown how nervous they are. Just look at all the boards and Twitter. Common holders are in full panic mode after losing 50% in the last few months while Prefs gained or mostly held their ground.
It's very sad, but understandable. Frustration and uncertainty make people do stupid things. Hang in there though, the Mnuchin Dilution Solution is just around the corner (aka MOELIS!)
FNMA Commons_Cancelled
Gap down tomorrow. No Average Joe's here can stop what's coming.
Losing Cohn is the first step to losing Mnuchin. Lose Mnuchin and Gene Sperling is next in line. Moelis or bust!
FNMA Commons_Cancelled
There are over 5 Billion shares of Apple stock. And I've seen FNMA be compared to AAPL several times. Why is 1.2B shares of FNMA or 650mm shares of FMCC so far-fetched?
Thanks for the clarification. That is one of the only things holding me back from buying FNMA. Until Contract Rights are confirmed or up-held in the Courts, I don't think I can buy FNMA . If it keeps dipping (and the charts say it's heading significantly lower), then I might buy some around $1-1.25. For now, I will closely follow the situation and try to help others in realizing Commons can be cancelled at any time without warning.
Freddie/Fannie Program and Guideline Changes; Powell Takes Center Stage
http://www.mortgagenewsdaily.com/03022018_lending_underwriting.asp
Draft Senate GSE Reform Bill Would Scale Back Affordable Housing Lending
https://www.novoco.com/periodicals/articles/draft-senate-gse-reform-bill-would-scale-back-affordable-housing-lending
First red day for the Preferreds in over a month. Shocker. Guess we were overdue for some red after everything the Commons have been through lately, LMAO!
Excellent close for FNMA. First green day in over a month!!
Now back to the possibility of the cancellation of shares. Can anyone confirm if Common shares have Contract Rights? Should be an easy answer for all you long-term posters. Do FNMA holders have Contract rights that prevent the cancellation of their shares?
Can we be placed in Receivership now that it's been 60 calendar days and we have a negative net worth due to the DTA write-downs?
Is this the bottom for FNMA? I want to buy, but am concerned that since FNMA holders don't have Contract rights, the Government can just cancel the shares. I posed the question on the FNMAS board, but I don't think Preferred shares can be Cancelled liked Common shares since they have Contract rights.
Is that still accurate? I might buy some FNMA soon, but want to confirm Commons have Contract rights also.
I've been hearing a lot about Common shares getting Cancelled. Can the Preferred shares also be cancelled or do they have Contract rights as per the Perry Appeal which was sent back to Lamberth for further investigation.
Thanks in advance for providing clarification!