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It's in the transcript. So maybe Navy left it out accidentally (or intentionally). Here's a link to the Transcript:
https://seekingalpha.com/article/4382652-federal-national-mortgage-associations-fnma-ceo-hugh-frater-on-q3-2020-results-earnings-call?part=single
Correct. It's amortized over the 30 year loan. That's why it doesn't show up on their balance sheets now.
And that's also why it won't count towards the CET-1 Capital requirements.
We have at least $100B more to go.
Fannie's CEO earlier today: "We estimate that our total regulatory capital requirements under the proposed rule, as written, would be approximately $160 billion, which includes over $120 billion of common equity tier 1 capital."
Better start those Capital Raises. Otherwise, it's another decade of purgatory.
Most thought FNMA would be above $10 post-PSPA Amendment.
Now we're sub-$2. So maybe FNMA gets above $3 post PSPA Amendment?
Even if it does, it'll be a Sell the Pop moment because no on can value Commons until we know the outstanding share count.
Excellent FNMA Facts. FNMA Fantasy is hard to escape with the promises of double-digit, and even triple-digit, stock prices.
But when we ignore the Fantasy and focus on the Facts, we all understand why FNMA is where it is.
There's just way too much uncertainty to be excited about Commons in any meaningful way outside of Gambling.
The Market seems unimpressed with these Earnings numbers for FNMA.
Was the Income lower than expected? Were the Profits lower than expected?
You kept saying yesterday that today would be an Earnings Boom, yet here we are still sub-$2.
And Commons are actually red on the day.
No Bueno Amigos ... thankfully, it's coming!
Earnings don't change Commons uncertainties. Still a Gamble to "invest" in Commons.
There's been lots of FNMA sellers lately.
Let's see if $1.90 holds through next week.
Wonder if he'll buy Commons once he finishes winning with Genworth.
Probably not. I imagine he'll just buy more Jr. Preferreds since Commons are still a HUGE Gamble.
Is that a recco?
Makes me wonder if they'll leave anything for the Little Guy (Commons).
Seems odd they would stop the capital buffers exactly where it's needed to cover the Jr. Preferreds. And a little extra in case they need to pay the back-dividends or damages.
Hopefully there's something left for the little guys Gambling on Commons.
Excellent! JPS will probably be in the money after this Quarter or for sure by 4th Quarter.
I wonder if that's why we're seeing so much strength in the Jr. Preferreds in comparison to Commons.
Once the GSEs hit their capital buffers, everything else gets swept to the Treasury.
Interesting that the capital buffers are just enough to make the Jr. Preferreds whole. Isn't it!?
BOOM! FNMA FACTS!
Commons are below Jr. Preferreds. So where does that leave FNMA Commons?
"Absolute Trash" is the rating that's been assigned to them
If FNMA goes under $1.90, the Shorts are going to pile on.
We've seen the Short Interest drop significantly and most of the price loss recently is due to Sellers throwing in the towel.
I can only imagine what will happen to the price of FNMA when you have both big shorts piling on + frustrated Sellers.
We might see a 25% one-day drop if $1.90 breaks.
No Bueno Amigos
Boom! FNMA Facts
FNMA doesn't even have 10-bagger potential. Sorry!
You missed that boat by not buying Jr. Preferreds when they were trading less than Commons LOL!!
Be sure to highlight it's the Purchaser that has this option. It comes down to May versus Shall again.
Why would the Purchaser (US Treasury) declare the Agreement null and void?
Yeah, they wouldn't do that.
So toss this "legal opinion" from Ano in the trash along with all of his other FNMA Fantasy.
Sr. Preferreds, Warrants, SPO Dilution, JPS Conversion Dilution, among other things, are all much more concerning than earnings.
The Market can't place a proper EPS multiple on FNMA Commons until all of the above are clarified.
Until then, FNMA is for Gamblers.
This is the start of FNMA facing Facts.
Much more Fantasy still needs to be put to rest.
Price needs to deflate substantially.
Save some dry powder for $1.50.
It's not looking good. If FNMA $1.90 breaks, who knows how low Commons could go.
And then there's the election risk that hasn't been priced in yet either.
No Bueno Amigos
Can we sticky these FNMA Facts?
That's what everyone will say if $1.90 breaks.
FNMA needs to find her feet before the JPS Shorts take out Support.
Saving my dry powder for November 4th. If Trump loses, Commons & Jr. Preferreds will get a smackdown like after the Perry loss.
Must be, otherwise he would be buying Commons. Right? Considering Commons trade lower than where he purchased, he should be buying more to lower his cost average.
Unless, he lost conviction along the way? Or did his hedge in Jr. Preferreds offset his losses in Commons?
If you think missed Dividends will be repaid, then you should own Jr. Preferreds rather than Commons. You'd be looking at roughly $30 per share just in missed Dividends depending on which Series of JPS you purchase.
And that doesn't even include Treble Damages! That would be another $300 per share in Treble Damages!!
We'll be lucky to see $3, yet alone $30.
The only way FNMA sees $30 is with a 10:1 Reverse Split.
They're all part of the same company structure. Not to mention, the impending Conversion of Jr. Preferreds to Commons makes us almost one in the same
There's a lack of interest in FNMA Commons. That seems to be what you're suggesting, and I would have to agree with you.
Upon successful Conversion of Jr. Preferreds to Commons, I will have a significant percentage of the Vote.
This Plan gets my vote.
What happens if SCOTUS declares NWS not ultra-vires and also makes Calabria removable For Cause?
Are Commons worth much more in that scenario or much less?
BOOM! Absolute destruction of that FNMA Analysis
Waiting to see if FNMA $1.90 Support fails.
It'll be a quick waterfall down to $1.50 if that happens.
I'm saving some cash in case support breaks.
Data suggests we're seeing Sellers then. Not Shorts.
That's interesting information and the opposite of what's been being said for the last week or so.
This is probably why Jr. Preferreds continue to rally. At $20B in Capital, the GSEs will almost have enough Money to cover the Jr. Preferreds at Par Value.
Doubt the market will care. Conservatorship, Sr. Preferred Shares, and Warrants will continue to weigh heavily on Commons.
FNMA needs to get back to the Facts!