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Biden doesn't want to look as if he is helping big preferred shareholder names such as Bruce Berkowtiz, Fairholme Capital Management, John Paulson, etc. Common is more 'common', it doesn't look that bad. Bill Ackman's 'social' investments, betting on zero / Herbalife, siding with common folks conveys a more 'dem' image. just theorizing about what's going to happen after Jan 20
We all hope so.
I agree with that, Mnuchin first, Calabria 2nd, and not even aware of what his Treasurer is doing, Trump. Disappointing
Federal Takeover of Fannie Mae and Freddie Mac
https://www.c-span.org/video/?280948-1/federal-takeover-fannie-mae-freddie-mac
great summary by Gaby, thanks for sharing.
God will hear you, us.
M. Waters asking for no capital increases. Mnuchin ridding warrants and senior ps.
Good for commons and I also think for junior ps, we are all in this boat together
I thought Trump and hence Mnuchin were true to their words. They are all the same. I don't think much about Biden but he might be what we need. Who knows!
Mnuchin should do what Trump orders him to do. What does he (SM) thinks he is?
who knows how things work.
Maxine Waters might even help us by urging no capital requirement increases, although asking not to release from C until Biden reviews. But Mr. Biden is a corporatist after all.
https://www.respanews.com/RN/ArticlesRN/Waters-to-Calabria-No-midnight-rules-on-GSEs-81034.aspx
Mnuchin is a liar, he was supporting a consent decree now he is not
https://www.wsj.com/articles/fannie-freddie-privatization-decisions-likely-to-be-left-to-biden-administration-11608028200
The weird thing is that fmcc went up almost twice as much. . It doesn't make any sense. Either fnma doubles tomorrow or fmcc is going down twice as much
thanks for sharing. Even WSJ is "in our favor"
good words
Thanks for sharing Bill Ackman's November 2020 video with his opinion on the GSE's
We are all in the same boat. It will pan out in a couple of days.
Future success will also be measured based on average FNMA cost;
Greater than $3
Between $2 and 3
Between $1 and 2
Less than $1
Need to wait a year to have capital gains instead or ordinary income.
that's a good point
it is all about timing a-l'-Ackman
Selling PS +15%, rotating to CS at a bargain.
That's a good theory.
Mnuchin working for the investment bankers in Wall Street instead of fulfilling his word and duty
Trump thinking about the presidency and his problems might make GSE last on his list of things to do.
Hopefully it won't be like that... We need a miracle
Steven Mnuchin... First he said he was working on freeing GSE from Government control. But his actions oppose everything that should be happening for that event! What's going on? The GSEs should be freed before Biden assumes power
Is he making us wait until the last minute of December or waiting for Trump to get those lost states? He got rich in 2008. Now it is our turn
Fannie Mae has a market cap of $2.36 B, which represents its current share price of $2.03 multiplied by its outstanding share number of 1160.
Formula
((Rev $7.075B Q * 4)/1.16)* (P/E 15) = $366 / share
Outstanding share assumption;
This is before any split or reverse split (Bottom line is the same)
Revenue figure from here;
https://ycharts.com/companies/FNMA/revenues
Competitors (to compare P/E ratios)
Walker & Dunlop
KKR Real Estate Finance Trust Inc
Hercules Technology Growth Capital
Ocwen Financial Corp
Pennymac Financial Services IN
Ellington Financial Llc
Lendingtree Inc
I am looking common FNMA will reach $350 a share after Sr. PS considered fully paid and dividends restored to ALL shares. Listing in NYSE.
This is using a low 15 P/E
Preferred stock is equity. Just like common stock, its shares represent an ownership stake in a company. However, preferred stock normally has a fixed dividend payout as well. That's why some call preferred stock a stock that acts like a bond.
that's so funny, LOL
Recco what's that
I may be.
Bottom line;
This ex CEO of Freddie Mac is obviously in favor of a bigger government, it is an absurd idea to disregard private property, no room for nationalization.
Thanks for sharing the article.
Basically as Don Layton puts it;
"As the objective is to eliminate ownership of any common equity by private-sector investors, the transition will also require that the current ownership of common shares (other than by Treasury) be eliminated--note 6
note 6;
"There are existing preferred shares outstanding owned by the investing public, now known as “junior preferred” in comparison to the “senior preferred” owned by Treasury. These junior preferred shares, with a face value of about $33 billion between both GSEs, can be left outstanding; however, it may be desirable for them to be eliminated in some fashion to reduce possible legal risks. "
Needless to say, We all wish this won't happen, and it won't, too extremist.
that's crazy, Don Layton proposing to eliminate both PS and CS in order to create a fully new government corporation.
You wrote;
I'm sure they'll be happy getting Par, or close to it. Conversion would just be icing on the cake and one final "F* You" to Commons
*******************
Now;
Many of us own both PS and CS and we are all in this together waiting for a favorable result.
1) If you disrespect members of this board with "F* You" language your participation should be revoked.
2) That icing on the cake is near impossible, getting par AND conversion. Just one or the other.
3) Reality check; just look at the tickers for PS and CS to see performance
thanks for sharing the link, I saw the last minutes only. Do you know where is the recorded session by any chance?
doing the same here
What's the source for this?
Commons -2.45%. Preferred -4.15% (average for the 15 different series)
Market has spoken!
Lol well put.
Incredible some think ps are worth something.
I guess it's called self defense mechanism
Calabria OPEN to change Capital requirements -
See 1:43:18
250:1
5:1 twice as largest banks
https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=406867#Webcast
Calabria's / FHFA / Senators have spoken
Market reaction; Preferred Shares continue being punished, not a good investment.
FMCC super cheap at $1.94. Time to buy.
https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=406867#Webcast
100% correct
time to sell all PS!
Preferred shares dropping doubles the drop in commons.. interesting.
Some say PS will be wiped, wow!