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that's the conundrum
selling shares that are certain to appreciate
my plan is to use my preferreds for cash out purposes, but hang on to the commons for capital appreciation
makes it easy/simple on the conscience
can't & won't be greedy
not on OTC pink sheets
volume looks light
be prepared for more swings
yep, it's gov's best interest to
have the pps of common shares increase in value and not 4-5 common to one preferred
imo the greater value of the common, the less "cannabalization" of the Twins equity. Otherwise it would come across like a reverse split.
NO WAY to that.
however, I own both share classes and on the cautious side at my age, though way overweight on these equities
imo that's a non-starter
no way
yep, you nailed it
that's my take, too
major common shareholders would frown upon the Treasury exercising GSE warrant to make a windfall profits -- as if its 10% SPS profit wasn't enough(?), and that based on putting the Twins in a conservatorship (via hacked accounting) they didn't need?
idk who would sue: American Funds Growth Fund hold about 90 million shares; I've heard other mutual funds also own common shares, but idk which ones.
I got my info from the Fidelity website/researching FNMA
Perhaps Ackman & John Paulson would, but so far neither have. They certainly have the wherewithal; why they haven't already done so, who knows?
tax consequences
I'm not bad-mouthing preferred holders since I own both share classes
however, there may be tax advantages for holding preferreds: when the time comes for conversion into common shares, word is (and I don't know for a fact) that it's a non-tax event.
however, if common shares are sold in a regular brokerage account, capital gains taxes await.
Some may say the profit gains in common shares may make that a moot point.
idk
for most here the capital gains rate will be 15% (single filers) for shares held over one year
short term capital gains rate is taxed like regular income ... so, it depends on how much is sold & the amount of the gain
https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/
I agree with that
that $20B is the capital buffer
it has nothing at all to do with the purchase of common shares imo
way too many unresolved issues
and, again, my take is Trump/Mnuchin/Treasury want OUT of the GSEs ... no more of diverting profits to pet political projects, etc
okay, a secondary offering
needs to be priced
but won't be priced until the Twins capital requirements are established and the warrants question is settled, NWS is ended, SPSPA is buried
imo WHATEVER the value: ALL common shares will reflect the same pps as the secondary offering
that makes sense to me
however, there are very powerful interests both inside & outside the gov that would like to see the whole recap & release fail
yeah, that's common sense
and I'm counting on that myself
but one never knows when dealing with the government
I've already learned by Civics lessons during this +11 year rip off; the gov can't be trusted
too many lobbyists/"think tanks"/TBTF banks, etc
Stretch IRAs -- once the law -- were just shot down and changed so that the assets contained will need to be used within 5 years after inheritance.
biggest tax hike in the history of the world
not a word from financial press
no public outcry
so yeah, very bad things may still happen -- that's the risk
as mentioned elsewhere
it was a freaking heist, not a bailout
Calabria's commonet
"Meanwhile, Mr. Calabria said, taxpayers would receive additional shares in the companies—the equivalent of new stakes in a firm preparing to launch an initial public offering—in exchange for allowing the companies to retain earnings now."
imo is baloney. maybe he was misquoted
"Taxpayers would receive additional shares in the companies"?
What taxpayers? Give me the names! Not just some faceless agency or department acting supposedly in my interest!
That's a crock.
Trump wants OUT of the GSE fiasco; not even a toe in the door.
imo a PLAN to stop the sweep
will be announced
a new thread here seems to be Treasury and/or FHFA acquiescence for diluting common shares via an additional issuance/creation of shares for "taxpayers"?
That would be dilutive to common shareholders.
That sounds like baloney.
Government taxes; government doesn't "own" public property -- that's an oxymoron. I believe Trump wants Treasury completely out of GSEs/publicly own company
The Treasury has already made +10% via the conservatorship on a false premise that the Twins needed bailing out.
Nah, man. And it seeks more besides that via profiteering through the exercise of warrants? I don't think so.
imo there's a very low probability of that happening, but if that 1 in a hundred chance that it does occur, there's not much to do about it
Some here call out "law suit" this & that, but it takes a mountain of $$ and time to see that through -- as we have all experienced. I believe any move by Treasury against common shareholder interests is remote, but at the end of the day nothing will be done about it
currently Zacks target price is
$4.50
However, it is subject to revision as its Zacks ranking
Mutual funds owning common FNMA stock
Growth Fund Of America Inc (i) 06/30/19 84.8M $335.1M 7.33%
American Funds Insurance Ser-Growth/Income Fund (i) 06/30/19 4.4M $17.4M
Delaware Group Equity Fds IV-Delaware Healthcare Fund (i) 03/31/19 1.3M $5.1M
John Hancock Var Ins Tr-Total Stock Market Index Tr (i) 05/31/19 28.8K $113.7K
TIFF Multi-Asset Fund (i) 03/31/19 5.8K $23.0K
Gov fiscal year starts Oct 1
very reasonable that an announcement re NWS will be made on 9-30 or 10-1
looks like Clay Trader was correct
sucks
ppl wanting on Treasury NWS announcement
I'd like to see some ppl
toasted in Sweeney's courtroom tbh
near term price appreciation
depends on announcement on NWS and Calabria/Treasury's planned capital structure for the Twins
details include what Howard is writing in his blog, e.g. CRTs
I have to read more about that to understand it completely
oh, and I suppose what comes out of Sweeney's courtroom in mid-Nov
my thoughts, too
Treasury is filled with TBTF executives in transition from one TBTF bank to another
not liking with widening price spreads
heck, Treasury is like a way station
for TBTF executives between TBTF bank jobs
so, it's risky depending on that
Plus, Mnuchin spends a heck of a lot of time out of the country, doing deals with foreign heads of state
So, I wouldn't be surprised for a swoon in FNMA/FMCC pps, but it won't last
These companies, as we know, get no respect
we're counting on that
the problem is counting on Treasury to announce NWS plans at the end of Sept. Can we hold Treasury to that "announcement"? Can we count on them?
We know the bureaucracy, deep state, etc. Lots of TBTF cronies work in Treasury.
It will eventually break & announcement will be made, however, FHFA & Treasury certainly doesn't give a fig for shareholder issues.
Boyle Capital, from the article
on its website appears to be invested in preferred issues
it doesn't mention commons
however, imo good news for either share class will carry over to the other. GSEs capital requirements & how its structured will define the value of each. But that plan is still under wraps
forming a base, right!
eom
hopefully a base is forming
for the next leg up
I hope you're correct
the worse IS over, but having a taste of success and having it snatched away is frustrating
common shares are volatile, though
two steps forward, one step back, but a slow & steady climb
hang in there!
weasels don't go "rogue"
weasels don't have to
weasels are rogue
shape-shifters, politicians, etc
a "rogue weasel" is an oxymoron term
sounds like Paul
eom
Trump wouldn't ask SCOTUS 2 challenge
FHFA, right?
that would be a hoot; light a fire right under Calabria's ass!
Wonder if Calabria can read the writing on the wall, lol
And Mnuchin says he will challenge 5th en banc to SCOTUS when his boss is throwing a similar clone agency under the bus? Yeah, when pigs fly!
Good things for the GSEs
+23 million FNMA trades today
that's good
expect more of the same
until Oct 1 & Treasury/FHFA formal announcement to end NWS; it will be the next leg up
the ending was very ugly
two weeks -- no big deal after all these years
however, it's tough to have that taste snatched away
wow, just wow
higher lows are a good thing
of course he's a weasel
that's what it takes to be a economist-bureaucrat who originated from a "think tank"
Did he ever have a job outside a think-tank or outside the gov?
darn straight a weasel, he couldn't be anything else!
Brooge, Guido2 thanks
will need to research later on during the evening commute
par for the course to malign
a positive view in places like this
anonymity flourishes in this environment, non-accountability, etc
idk about common shares being purchased by mutual funds
I do know preferred share are purchased by American Funds, like someone said in its Growth Fund
last time I looked was a few months ago, but haven't checked recently
true Shadow
some of these calls are way, way out of line
p/e around 12 like you said
Options aren't available on FNMA/FMCC
nada,zip, no
so does Fidelity
provides a compilation of mutual funds in Fannie & Freddie
most purchases, however, are preferreds
no call or put options on FNMA/FMCC
no such thing on these equities