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that's what i think too, with no dilution either
hey bradford86, do you think the exercise of the warrants will dilute common? Perhaps the government will realize they've already stolen lots of money and will not exercise... just hoping pps will not go down even more
Thank you bcde.
Will the exercise dilute common shareholders? will price per stock go down?
warrants will not be exercised, regardless of validity. I think there is still some decency in the World
Wish I could send this Timothy Howard video to Mnuchin, Trump, SCOTUS, and all judges in charge of investors's lawsuits...
FNMA Common stock will trade at $83 in less than a year. All Treasury's Senior Preferred / Warrants will be cancelled. Junior Preferred will probably get 300% ROI
https://seekingalpha.com/article/4184507-fannie-freddie-investors-get-ready-bhatti
FNMA should release Earnings for the quarter on August 2. I think EPS will be $3.5 or more, using a P/E of 25 the PPS would be $87.5
Considering TREE's P/E of 228 this is quite possible
I think warrants will be voided, because they already got so much more than the original bailout amount
You should send this to Trump, Mnuchin and Mulvaney
I hope so too.
God Bless!!
I hope he will release them too, stealing the money from stockholders is anti-republicanism!
thanks for the info
very good
What letter are you referring to?
yes, definitely
if we use a peer group analysis there is a competitor, TREE, with a P/E of 228. I've been using only 25 -->before dilution fnma = 225/sh
maybe I'm too ooptimistic but I'd expect at least 80/sh one mnuchin takes administrative action...
I think it is at least in part. fmcc has almost twice as much cash than fnma
On their FFSS for CY 2017; (https://www.marketwatch.com/investing/stock/fmcc/financials/balance-sheet)
fnma's net cash flow for CY2017 was 3.75B vs fmcc's 5.46B
fnma's has 3.35T in assets vs fmcc's 2.05T
fnma's pretax income is 18.45M vs fmcc's 16.83B
the problem I see is fnma's huge deferred tax of 16B that ate most revenue, but this should be a one time charge due the recent tax law changes. it shoulde be reversed soon, I hope
https://finance.yahoo.com/news/u-opens-criminal-probe-trading-080102316.html
Investment bank are up but GSEs are down. Institutional investors should short investment banks not GSEs! Criminal probes will prove this.
Besides, it seems there is an unbalance between fnma and fmcc, usually fnma is 10 c more than fmcc, now the roles have reverse. good timing for arbitrage, too bad i don't have liquidity since im long on fnma already, but someone with cash should buy fnma now, 20c gapp compared to fmcc
Wow this is great, thank you very much!
I had only used Investors Hub to read these posts
Cheers
Cool screen. What website are you using?
if that's the case then I see it would be good for GSEs
good time for arbitraging...fnma < fmcc by 6 cents!
with JP Morgan at $112 and Goldman Sachs at $238, I believe Fannie Mae could easily go to $175 in no more than 18 months
I think the same way. Go Fannie!!
thanks for sharing
Why Freddie Mac is way above Fannie Mae? It used to be the other way around...
What on Earth is happening today?!!!! BIG DROP
I tried to find news but could not find anything
any ideas??
http://abcnews.go.com/Business/story?id=5367958&page=1
When Treasury took ownership position of the firms the goal was NOT having the government take over the firms, but to provide support to let them continue operating as private companies.
Hank Paulson said that "Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies" Senator Dodd said he was optimistic about Fannie and Freddie than on other banks.
When they changed the interest charged from 2.25% to 10% to 100% is when they realized they would STEAL all the money from us. What a shame, from Democrat and Republican governments! Dirty money
I don't own Jr Preferred but all stock is equity;
https://www.investopedia.com/terms/j/junior-equity.asp
DEFINITION of 'Junior Equity'
Junior equity refers to equity that ranks lower than some other form of equity. It normally refers to the common stock in a company because it is subordinate to preferred stock. Common stock ranks behind preferred stock in its claim on company dividends because dividends on preferred stock must be paid before any dividends are paid to common stock.
any news from Bruce Berkowitz or Ackman?
We are in the same boat dude. All or nothing.
See you in Las Vegas to celebrate.
This has been a crazy ride.
I agree. I urge everyone to see the movie The Post
thanks for sharing... if he is holding it gives us hope
the Supreme Court will listen, they are more capable of understanding the whole situation, they'll see the whole picture.
Fannie Mae will be released in a month, then recapitalization will begin immediately. Common shares should go up to $250 or more once those warrants are voided.
Same here bud!!
But you will have to BELIEVE, have faith, FNMA will be recapped and release and the commons will be trading at $250 very soon, by May 17, 2018
interesting. thanks for your comment. hopefully it will we will have a shiny day soon...
If a new Federal Housing Finance Agency is appointed next year that would cause us headaches, why can't Mel Watt release them from conservatorship? He has the same authority to liberate them as the upcoming one
100% AGREE
I wish so too! God Bless
thanks for sharing
thanks for sharing
we need to find out a way to make the nation know about this!