WABR must have read the Average Joe Plan and is committed to ensuring prices at least get to 10% of where they're supposed to go (as per the AJP).

#$1,000/share!

I just hope it's the Moelis Blueprint. All of the other Plans likely hurt Commons, especially from their current price.

Recapitalized GSEs means Preferreds are money good.

I wouldn't expect the price to stay elevated for much longer. $FNMA has a history of being unable to hold its gains.

There's an old saying that still rings true today: Sell the Pops because $FNMA always drops.

I suspect most of the AJ Lemmings are ringing the cash register now and waiting for the inevitable drop so they can re-buy lower. $FNMA is probably heading to sub-$2 when Friday comes and goes without an update from Otting.

#LookOutBelow

Mark, Steven, Donald, and Craig sent something similar to me. This looks like The Plan. I'm just glad I got a glimpse at it before the Market.

Even though the Lemmings are slow, I expect a stampede for the $FNMA exit once this information is officially released.

KBW suggests otherwise. Trump to discuss Conservatorship during the SOTU. I imagine he'll detail how he's going to leverage that $100B from the GSE Warrants.

Wait and see. Preferred Conversion is almost guaranteed. It's going to be juicy too. Dilution incoming!

Oh no! I hope they don't dilute Preferreds. That would be horrendous! They can't possibly do that, can they!? I'll have to file a lawsuit to make sure Preferreds don't get diluted.

I don't think you understand what dilution is. Selling new Preferreds only dilutes Commons' EPS. You can't dilute Preferred shares

I'm still voting for 10,000 Commons for every $25 JPS I own. And 20,000 for every $50 JPS I own.

It's only fair for all the suffering JPS have had to endure, not to mention they're fronting the legal bills.

A Sr. Preferred Conversion absolutely destroys Common equity. It's a reality no one wants to face. Instead, it gets completely ignored by the "Banana Republic," "they will do the right thing," and "we'll file more lawsuits if they do that" claims from many of the Average Joes.

Unfortunately, I don't think many investors are prepared for this possibility.

That's what I want to know also! Why are JPS trading so much higher than Commons if they're not paying a dividend?

The market is obviously confused. There's no way they'll get a 2/3rds vote to take over Commons.



#NoWay

You mean the 2/3rds vote required to make changes?

Ahh yes, that's an important one that wasn't given to FHFA like Commons' voting rights were

I'll vote to get 10,000 shares of Common stock for every one JPS I currently own.

Double-check, they get to vote for any changes that would directly affect them. Hence, a two thirds majority is required.

I'll be voting to Cancel Commons entirely while Common shareholders are waiting in voting purgatory for the Conservatorship to end

You're forgetting Warrants, Sr. Preferreds, and Jr. Preferreds Conversions. Once you add those all in, you'll see why the PE Multiple is already very high.

$FNMA is overpriced at $2.50+. The Market will agree

Are you factoring in the Warrants? That's important to factor into your PE Multiple

Preferreds will vote to Convert and Dilute Commons. That will be a 100% vote. It's the best vote anyone could ask for!

Would you like to crush the lower shares even further down the totem pole?

-YES, ABSOLUTELY!

#VotingIsCaring

The Market agrees, $FNMA is heading to sub-$2. Timber Alert! Look out below

High PE = Overvalued. So $FNMA is overpriced based on these metrics. Thanks for clarifying

May touch $1.00 again

Why are Preferreds valued higher than Commons? That's so strange considering JPS have not been paying dividends for 10 years.

Maybe we should file a lawsuit to prevent JPS from being more valuable than Commons.

It's coming amigos. Life is good.

Sub-$2 by Friday? Feels like the rug is about to be pulled on us.

With details of THE PLAN on the horizon, everyone is left scratching their head wondering what roller coaster ride awaits us.

The big take-away is, Recapitalization means Preferreds are in essence made whole. Whereas with Commons, there's still a ridiculous amount of uncertainty with regard to how the capital is raised, if Sr. Preferreds will convert to Commons, when the Warrants will be exercised, and how many of the Jr. Preferreds convert to Commons.

Once all of those questions are answered, Commons might have some up-side. Until then, and depending on the answers, Commons may have already seen the highs of the 2019.

Completely agree. Nice to see some realistic posts here. Shares could go to $5 or they could quickly and easily go to near $0.01.

The end game isn't too far away. GSE Common investors will learn their fate very soon.

Probably because Common Shares are Worthless Junk. The Lemmings are late to this realization. But the Good Ol' Boys Club will help pound it home

LMAO! That is some funny sh!t amigo. HaHaHa!!

Assuming existing Commons aren't Cancelled for new ones, then it's likely they would get Dividends. But that's still very speculative and up for a heated debate.

The downside of a Utility Model is Capped Returns (low EPS, low PE multiple). So maybe Commons see the $5-7 range I've long suggested is likely. Even if they're paying $0.25/year in dividends, it's a far cry from $40+ per share

Joe Light wrote it, but it was Corker that told him the details of the plan. So let's say we're both right. Although, the person that said it is probably the person you would attribute it to versus the person that wrote what someone else said

No bueno, amigos. Muy no bueno. Corker was right it seems:



Corker:

Someone had to counter the Average Joe Plan and the nonsense that was brewing here ($100-$1000 per share, etc.). Paulson & Berko chipped in and got me.

Now $FNMA is stuck with me, at least until the Recap mechanics are announced. One last, "I told you so," and then i'm outty.

#LifeIsGood

Still sticking around for the last ~150%? Careful now, remember what Cramer says about Bulls, Bears, and Pigs

Depends on cost basis. The only ones outperforming are those that bought the falling $FNMA knife.

Judging by the majority of the posts in December, i'm thinking most are still in the Red here

Good news! Reduced EPS goes with reduced footprint. Life is good!!

How are those WMIH escrow shares working out for you? LOL!

Don't worry, you'll get escrowed $FNMA shares too

That video is my ringtone. It's so fabulous! I get pumped up every time I hear Calabria say those wonderful things.

But then my excitement quickly dissolves as I come to the realization that Mark might also mean an end to these once wonderful companies since reducing their footprint is a top priority for him.

But what does it mean for Common shareholders?

Damn, now we gotta Fill Da Gap. Nice job pumpers! Easy Short from here

As expected. Does not end well for Commons. Sorry guys, but $FNMA is heading to sub-$2 tomorrow.

Wait for someone else to post the article. I'm not at liberty to share the article.

Quite the contrary. After dumping Commons at $2.80 earlier this week, i've been reallocating funds to Jr. Preferreds (the winners).

I'm fairly confident Commons are about to be wiped from the face of this earth and replaced by new ones (current JPS).

Not sure why anyone even posts here anymore, Preferreds are the future Commons.

I'm finishing reading the Otting Letter to Maxine. I'll revert back later today with my comments about how this will more than likely destroy Common's value. Can't wait!

In the meantime, enjoy the price gyrations.

Okay, let's address the elephant in the room.

Sub-$1 FNMA is back on the table. That's no bueno amigos

Considering the Lemmings are slow, sell-off continues tomorrow. The AJ Lemmings are probably still working their Fast Food jobs and won't be seeing this news until tonight.

In other words, expect the selling to intensify tomorrow as the news spreads