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Exceptional post filled with FNMA Facts. Sticky please!
He had two years with his FHFA Director, Calabria, and didn't do anything. Now he's saying because Watt was in for the first two years, that's the reason he didn't do anything?
Good luck with that in the 5th Circuit. SCOTUS won't be re-hearing any of this.
So you think SPS gets Converted to Commons instead? Oof!
If I owned Commons, I'd much rather have the Warrants be exercised than Sr. Preferreds Converted to Commons.
SPS Conversion leaves Commons practically worthless -- $0.0001
Better prepare for the Warrants to get exercised then! Trump specifically said he would've sold the Government's Common Stock.
What we don't know yet is what he would've done with the Sr. Preferreds. Ultimately, that's the biggest barrier to Commons having any value at all.
BTW, Biden is the Sitting President. Trump is a former President
SCOTUS won't reconsider any of this
Trump isn't POTUS, so his words are meaningless now. Too bad he didn't say those things when he was still POTUS.
Watch and see as FNMA slips back to the lows as tax-loss selling intensifies.
Trump basically said he would've exercised the Warrants. That's all he said.
Nothing about Sr. Preferred Stock being written down or anything else meaningful to FNMA Commons.
Not sure that helps us much.
It's the FNMA degen way. Just keep saying, "I'll buy more if it gets cheaper."
Where were those buys in October when FNMA was in the $0.70s?
Sell the Pop, FNMA Always Drops
How does Utility Model affect FNMA Common EPS? I imagine we can throw out all EPS predictions since the GSEs will be heavily regulated and not allowed to make much profits.
Seems like a punch in the gut to Commons while rewarding Jr. Preferreds with hefty dividends.
@CRLONLINE Mike Calhoun and the Center for Responsible Lending propose significant lowering of the "Capital Requirements" and to regulate the GSEs as Utilities, as investors will "appreciate that the GSEs low-risk business model is stable and see the GSEs as value stocks."
— GSE Restoration Team (@JohnDee78791547) November 29, 2021
We'll have to check Pershing Squares holdings next report to see if they still own FNMA. It's very concerning considering Ackman was one of the only holders of that size.
If Wild Bill is calling it quits, us Average Joes will be left out in the cold when it comes to settlement negotiations.
No bueno amigos
Did Ackman exit via a block trade? That's some scary volume for no price movement.
Ackman does brokered trades, so he probably just told them to get him about market price and dump all Commons.
No bueno amigos
GSE Dumping continues - unabated
Can we sticky this post?
Any updated information on Treble Damages for FNMA?
Rough day for Commons. Hope everyone Sold the Pop knowing FNMA will always drop.
Thankfully the JPS are pulling FNMA Commons higher. We should all be grateful.
Just don't forget to Sell the Pop, FNMA Always Drops.
How much did the SPS Liquidation Preference increase in the 2nd Quarter?
Unfortunately, none of that money is attributable to FNMA Commons
JPS Pumping, Commons Dumping. The cycle repeats daily.
Anything more than a 1:10 Reverse Split I would consider the equivalent of Commons being Cancelled.
And we all know It's Coming Amigos!
Exceptional FNMA Facts. Sticky please!
That's probably American Growth Funds dumping their Common position. I would expect institutional ownership to continue dropping as no one wants to be holding the bag at the end.
Ackman seems to be the only exception so far, but he can't sell now or the price might go below zero.
Are we still getting Treble Damages?
I wonder if Commons started dumping based on CRT comments from FHFA Director Thompson.
The timing is suspect and we know CRTs will impact earnings attributable to Common shares, so this seems to make sense.
Lots of large sell orders. Wonder if Ackman is dumping Commons alongside American Growth Funds.
American Growth Fund taking advantage of the Pop. They still have a lot more FNMA Commons to dump on the market.
It seems likely that any FNMA Pop will continue to be sold
Sell the Pops, FNMA Always Drops!!
The truest words ever spoken.
Commons must remain on the sub-$1 Value Menu indefinitely.
There's strong support for FNMA around $0.25-$0.30. I might even be a buyer there.
But seeing as how JPS are likely to get Converted to Commons, I don't see why anyone would buy Commons at all. So we might see those sub-$0.50 prices soon.
No worries though, It's Coming Amigos!!
Need an L2 update on the JPS please. FNMA Commons really lagging behind last few weeks.
Rumors of Cancellation of Commons swirling around Twitter due to new FHFA docs posted today.
Nope, only Commons count towards CET1 Capital requirements.
Hence, if we want Fannie & Freddie to survive, we need them to sell a ton (100s of millions) of new Common shares.
I expected that to happen around $1 when FNMA was at $3. I would now expect it to happen closer to $0.25 (or its equivalent post-Reverse Split).
When Commons get Cancelled, they won't be relisted. But shares in the new companies may get listed on the NYSE. Existing FNMA shares likely won't remain in existence or will trade on the gray sheets.
Lower capital requirements, good. More CRTs, bad for Commons.
That's going to hurt potential EPS.
Does this change affect the Treble Damages model?
The FNMA Sellers are out en masse today.
Can we get an L2 update?
It seems Calhoun is good for Jr. Preferreds and bad for commons. Even CMLA seems to voice the same reasoning.
Hope everyone took advantage of the low JPS:Common ratio while it was there.
We all know Commons getting Cancelled is fully back on the table with Calhoun potentially taking the FHFA Director position.