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We are talking about trillion dollar companies. Not credit card or auto debt.
After seeing the only workable plan this morning, the average joes are in a scurry to gain traction in the White House.
The answer to most if not all your questions, based on the court proceedings so far, is yes.
Into oblivion in regards to the average joe plan which was calling for $1,000.
Notice the pfds get converted, we will all want common to do well.
WOW
1st-Companies issue primary common equity through an IPO
2nd-Companies issue primary common equity through a follow-on offering
3rd-Treasury sells remaining equity interest via secondary offerings
4th- Agree terms to partially equitize JPS
Talk about getting diluted into oblivion. I am now almost certain this is why Ackman started a pfd position. The dilution is going to be catastrophic.
"Produce an additional $100 to $125 billion of profit for taxpayers." Hello warrants and dilution
"One year after its release, the Safety and Soundness Blueprint continues to provide the only mathematically credible, detailed, and achievable path forward for the GSEs. "
"We estimate the value Fannie Mae (FNMA) and Freddie Mac (FMCC) preferred shares could increase by 20-180% if Treasury and the Federal Housing Finance Agency (FHFA) employ certain administrative actions"
That is music to my ears. Pretty interesting that they did not even bother to cover FNMA or FMCC.
Since it is down, can you post the AJ plan website? It would be a great time to spread it like wild fire all over the internet.
You do understand that they are different people and companies right...
Your statement is SPOT off. There is a difference between an IPO and re-IPO. It might be valuable to learn the difference so the dilution does not come out of left field and you can SPOT it coming.
He must have strong conviction in the pfds (he does not own any common, unlike Ackman who opened a pfd position to hedge his risky common bet) to continue paying the legal bills while trimming his position to meet redemptions.
He was the hedge fund manager of the decade for a reason. He knows a good investment when he sees one.
Out of curiosity, have you been following any of the court developments or are you just banking on the gov implementing the AJ plan without ever having acknowledging that they have even seen it?
“I wouldn't be surprised to either see them cancelled or cease and desist”.
That would be devastating to common shares. Would they see any value at all after the pfds got paid out?
#averagejoeatthebottomofthetotempole.
Great post. Should be a sticky.
The latest tactic to pump fnma.
I think they are. Look at the volume on fnmas.
You left out the real resolution to this, the administration.
"I see so many other cases resolved quickly efficiently no excuse why we go months and YEARS on this issue"
Can you share which lawsuits have been like this that are actually positive for shareholders? All the quick ones have been wins for the government.
Just a few days ago you said, "(Maxine has said the GSE LOAN has been REPAID in FULL ) ". How do you feel about her?
I will be saving my 99 cent big gulp money to load FNMA when it reaches that point. No pizza or hot dogs for me. I will be pouring my big gulp money into fnma and hoping to get the new 6 dollar meal at McDonalds once we get released.
That would be fantastic since it means get preferreds get par value and of course, a dividend first.
I do not know how healthy a common dividend will ever be given the dilution and lower eps.
With something “having” to give before EO, it is worrisome that we continue to bleed? Guess what is going to give is not going to be positive for commons. Any thoughts? TIA.
Wait, dividend reinvestment? Does that mean pfds get par?
Luckily for pfds, they will see a dividend before the commons ever see one. With dilution and lower eps, do you think commons will ever see a meaningful one?
The rotation to preferred makes sense now as Jeb wants to get rid of F&F. I had thought the rotation was a result of the incoming dilution and lower EPS, but now that you shared Jeb's words, I think the surge in rotation is due to receivership worries.
The lemmings are catching on and moving their money into the safer class.
Will we hit $1.00 before Thanksgiving?
Do you have a link or is this another “boy cried wolf” outburst like the yahoo finance gimmicks you have been saying for years?
I believe that might be the catalyst for the strong rotation to pfd the last three days.
As I noted a few days ago, the rotation should be picking up steam as the outcome becomes more and more obvious to the lemmings.
The same reason flat out pumpers are allowed to post (stockprofitter, CBS, Camarro, barrio), it is a public forum.
After strong numbers, I expected to see green. Kind of disheartening to see us in the red right now.
So more money to pay pfds before commons see a penny?
That should scare common holders are they only see money if pfd’s see money first.
#themoreyouknow
Can you explain how this is logical? TIA.
Add in the dilution and it is a double whammy.
The average joes still have plenty of punch to handout for Halloween though. After the initial shock of what the punch tastes like, I expect the rotation to gain steam.
As a regulated utility appears more and more like the end result, capped returns really kills thoughts of $100+ dreams. $10 in a year or two is more along the lines.
Cheers to the $100 club punch though.
Battling to stay green on the day. I’m guessing the lemmings don’t know about the secret share buy back or the secret SEC letter yet.
If only they were on the internet or could be found anywhere, we might get a little boost.
"Common stock, $0.00 par value, 4,000,000,000 shares authorized, 725,863,886 shares issued and 650,058,775 shares outstanding"
Page 14
http://www.freddiemac.com/investors/financials/pdf/2018er-3q18_release.pdf
"As of October 16, 2018, there were 650,058,775 shares of the registrant’s common stock outstanding.:
Page 1
http://www.freddiemac.com/investors/financials/pdf/10q_3q18.pdf
Considering the company can’t buy back its stock while in conservatorship, this whole reply is a waste.
The same great news we always have. Great earnings and a lot of money for the treasury while the sp keeps falling closer to a dollar. There will be a lot of buyers as soon as it drops below $1.00.