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Looks like Commons are about to get Cancelled while Jr. Preferreds will see some recovery under Calhoun.
GLTA
Any updates on Treble Damages?
Surprised this is still trading at all.
Cancellation isn't too far away though
It'll be worse after the Warrants are exercised.
Heard Treble Damages were back on the table for FNMA. Had to come verify this myself.
Long-term support for FNMA at $0.30
Is the Cancellation of Commons back on the table? Looks like I may need to bring that alias out of retirement.
Calabria is already out as Director. We're waiting to find out who the Acting Director will be and who will be nominated and confirmed to become the next Director.
https://www.reuters.com/legal/government/us-supreme-court-bolsters-presidential-power-over-housing-finance-agency-2021-06-23/
https://www.wsj.com/articles/supreme-court-issues-mixed-ruling-on-government-seizure-of-fannie-freddie-profits-11624459222
Indeed. JPS are now in the Driver's Seat from here on out.
Any recap goes through Jr. Preferreds.
Commons are now basically road kill waiting for JPS to have their way with them.
Those numbers were only possible with a Reverse-Split.
But, we all knew that
SCOTUS Judges Shorting FNMA was obvious. Carney warned us.
Can we sticky this? It's filled with FNMA Facts!
I wouldn't consider less than 5 for 1 (5 Commons for every one $25 JPS or 10 Commons for one $50 JPS).
Offering a poor JPS Conversion Ratio only means more dilution for Commons since the JPS would count towards Core Capital if Converted.
Capital Structure 101 allows JPS to sleep well every night.
Here's a quote from kthomp19 as a reminder:
That depends on who the unfavorable ruling is against
Hopefully not to the downside though. Is that possible?
If SCOTUS rules unfavorably, FNMA won't go up. Will it?
Higher volume than usual today. SCOTUS Shorting Commons again?
FNMA lost the 50-day moving average again. No Bueno Amigos
Why do these FNMA Facts always get repeated?
Can we sue FHFA/Treasury for Emotional Damage also?
Is SCOTUS going to eliminate Sr. Preferreds and Warrants??
If not, there will need to be a restructuring
Wait! Does Capital Structure matter in a re-structuring?
Are you also saying the GSEs would need to be restructured in order to be released from Conservatorship?
Assuming the above answers are both "Yes" then I have to assume Jr. Preferreds are a much smarter, and safer, investment than gambling on Commons.
Every uptick is sold.
Very interesting to see this in FNMA.
All I wanted was price appreciation.
I know it might happen eventually.
Silly me.
And then FNMA bounces.
No one saw it coming.
In any event, FNMA is not as good as JPS.
Don't tell the Average Joes though.
I'd be surprised if Commons end up higher than $6.
On the other hand, they might only be worth $2.
Thanks for listening!
How low do you think FNMA goes after SCOTUS rules?
It should, in theory at least. FNMA Facts!
But before anything meaningful happens after SCOTUS rules, it will likely be 2022 anyway.
One way or another, it's coming amigos!
That or our Dividends. Either would make us happy!
One or the other is coming amigos!
Irrational Exuberance is baked into FNMA's price.
If SCOTUS doesn't deliver in the next few weeks, I expect at least a 30% drop in price.
Didn't Sweeney refer to the FHFA/Treasury as "The Mob"??
How did that turn out for FNMA? Case Dismissed
I 100% agree with these FNMA Facts.
Agreed. This is the most likely outcome.
Good close! Gap Up on Monday? Seems likely.
Just be sure to Sell the Pop, FNMA Always Drops