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3000 more shares at $2.99. That is a silver lining to the Calabria cloud!
Go FnF!
I have my 3.00 order in for more shares. Let's see what the lemmings give me today!
Go FnF!
Just waiting for $3
Is this drop due to the market?
Calabria back tracking?
Both?
Either way it is a gift.
Go FnF!
Looks like I might get more shares at $3 pretty soon. Who woulda thunk?
Go FnF!
If all of this negativity keeps pushing the share price down I can buy a few thousand more Wonka tickets below $3.00. That is just insane at this point.
Go FnF!
That is a completely different kaboom. Of course all of our FnF concerns would be over!
Go FnF!
Tracking Bill Ackman's Pershing Square Portfolio - Q4 2019 Update
Feb. 20, 2020 11:28 AMPershing Square Holdings, Ltd. (PSHZF)A, BRK.A, BRK.B
Summary
Bill Ackman's 13F portfolio value increased from $6.49B to $6.55B this quarter.
Pershing Square increased Howard Hughes and Agilent Technologies during the quarter.
The largest three 13F positions are Chipotle Mexican Grill, Hilton Worldwide Holdings, and Lowes Companies. They together account for ~56% of the portfolio.
This article is part of a series that provides an ongoing analysis of the changes made to Pershing Square's 13F portfolio on a quarterly basis. It is based on Ackman's regulatory 13F Form filed on 02/14/2020. Please visit our Tracking Bill Ackman's Pershing Square Holdings article for an idea on how his holdings have progressed over the years and our previous update for the fund's moves during Q3 2019.
Ackman's 13F portfolio value increased marginally from $6.49B to $6.55B this quarter. The number of positions remained steady at 8. The portfolio remains heavily concentrated with a few huge bets. The top three positions account for ~56% of the total portfolio value: Chipotle Mexican Grill (NYSE:CMG), Hilton Worldwide Holdings (NYSE:HLT), and Lowe's Companies (NYSE:LOW).
In addition to partner stakes, the fund also invests the capital from Pershing Square Holdings (OTCPK:PSHZF), a public entity that debut in Euronext Amsterdam in October 2014. This was set up primarily to increase the amount of capital invested that is permanent. Pershing Square Holdings has underperformed the S&P 500 since its EOY 2012 inception, although for 2019, they returned 58.1% compared to 31.5% for the S&P 500 index. Their original flagship fund's (2004 inception) track record is outstanding with annualized returns at 14.3% compared to 9.1% for the S&P 500 index.
To learn more about Bill Ackman, check-out the book "Confidence Game: How Hedge Fund Manager Bill Ackman Called Wall Street's Bluff".
New Stakes:
None.
Stake Disposals:
None.
Stake Increases:
Howard Hughes Corp. (HHC): HHC is a 4.25% of the 13F portfolio position established in 2010 as a result of its spin-off from GGP Inc. The stock has returned over 3x since the spinoff. Recent activity follows: Q3 2018 saw a ~3% trimming and that was followed with a ~40% reduction next quarter at prices between $90 and $124. This quarter saw a ~85% stake increase at a cost-basis of ~$115 per share because of the conversion of total-return-swaps they owned. The stock is currently at ~$128.
Note: HHC board granted Pershing Square a waiver in December to acquire up to 26% of their Common Stock. Regulatory filings indicate that their ownership stake is at 6.38M shares (14.8% of the business). This is compared to ~2.2M shares in the 13F report.
Agilent Technologies (A): Agilent is a 4.23% of the portfolio stake established last quarter at prices between $66 and $78 and increased by ~11% this quarter. The stock currently trades at $85.35.
Note: Overall, their cost basis was $76.58. The analytical measurements business has an attractive razor - razor blade business model. The buy thesis is based on the margin expansion and leverage opportunity.
Stake Decreases:
Starbucks Corp. (SBUX): The ~7% of the 13F portfolio SBUX stake was established in October 2018 at a cost basis of ~$51 per share compared to the current price of $90.14. Q2 2019 saw a ~7% trimming. This quarter saw a ~40% selling at prices between $82 and $89.
Note: Earlier this month, Pershing Square disclosed that they had sold their remaining stake in Starbucks. Overall, they had a 73% return over 19 months of ownership ($51 to $85 from July 2018 to Jan 2020).
Kept Steady:
Chipotle Mexican Grill (CMG): CMG is the largest position at ~22% of the portfolio. The stake was established in Q3 2016 at a cost basis of ~$405 per share. The position was sold down by ~30% in Q3 2018 in the high-400s price-range and that was followed with a ~17% trimming over the next four quarters. The stock has doubled and, currently, trades at ~$934.
Note: Regulatory filings from earlier this month indicate that Pershing Square sold ~14% of the stake at ~$860 per share on February 6th and 7th. They still control 5.4% of the business.
Hilton Worldwide Holdings (HLT): The large (top three) ~18% portfolio stake was established in October 2018. It was purchased at prices between $64 and $78 and the stock, currently, trades well above that range at ~$113. The position has seen only minor adjustments since.
Note 1: Ackman is bullish on their asset-light business model and sees a mid-teens growth opportunity. His overall cost basis is $73 per share.
Note 2: In Q4 2018, Hilton Worldwide Holdings came back into the portfolio after a gap of eighteen months. The previous position was purchased in Q3 2016 and disposed a year later. Pershing Square has said that the new position was acquired at a better valuation compared to their previous purchase. Also, the business structure has transformed into a capital-light model because of the spinoff in early 2017 of Park Hotels & Resorts (PK) and Hilton Grand Vacations (HGV).
Lowe's Companies (LOW): LOW is a large (top three) ~16% of the portfolio stake established in Q2 2018 at prices between $81 and $101 and increased by ~9% next quarter at prices between $95 and $117. Q4 2018 also saw a ~13% increase at prices between $86 and $114 while Q2 & Q3 2019 saw a ~10% combined trimming. The stock currently trades at ~$123.
Note: Pershing Square's cost basis on LOW is $86 per share. Their buy thesis is on the premise that Lowe's is laying the groundwork for a multi-year transformation. Analyst Day targets imply more than $10 earnings per share over the next few years.
Restaurant Brands International (QSR): QSR is, currently, the fourth-largest 13F position at 14.68% of the portfolio. Pershing Square's cost basis is ~$16. Q3 2017 saw a ~32% selling at prices between $59 and $66. That was followed by a ~22% reduction in H1 2018 at prices between $53 and $64. The four quarters through Q3 2019 had also seen a ~28% selling at prices between $52 and $79. The stock, currently, trades at $65.92.
Note: Pershing Square believes the stock price should rerate as margins at Tim Horton's normalize. QSR is trading at 20x free cash flow which is a 25% discount to peers.
Berkshire Hathaway Inc. (BRK.A) (BRK.B): BRK.B is a ~14% of the portfolio position purchased in Q2 2019 at prices between $197 and $219 and the stock currently trades at ~$229. Last quarter saw a ~14% stake increase at prices between $196 and $215. For investors attempting to follow, BRK.B is a good option to consider for further research.
Note: Pershing Square's cost basis on BRK.B is $206. Their buy thesis is based on margin expansion opportunity (Geico & Burlington Northern), financial optionality with 20% of market cap in cash and a cheap valuation (14x earnings, 1.3x BV).
Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are other long positions in the partnership - the holdings were disclosed in 13D filings on November 15, 2013 - as they are not 13F securities, they are not listed in the 13F report. Ackman held just under 10% of the outstanding shares of both these businesses - 115.57M shares of FNMA at a cost-basis of $2.29 and 63.5M shares of FMCC at a cost-basis of $2.14. The combined investment outlay was ~$400M. FNMA & FMCC currently trade at $3.44 and $3.16 per share respectively. In March 2018, Pershing Square said their Fannie/Freddie pfds now amounts to 21% of the total investment in the two GSEs. They said it is a hedge in case the resolution favors pfds more than the common.
The spreadsheet below highlights changes to Pershing Square's 13F stock holdings in Q4 2019:
https://seekingalpha.com/amp/article/4325674-tracking-bill-ackmans-pershing-square-portfolio-q4-2019-update
2008 to the present and into the future is a fast buck in your reality?
Go FnF!
Since so few people follow this saga it can be spun and spun and...
Trump saves affordable housing
Trump closes Obamacare loop hole
Trump finally fixes FnF getting the tax payers off the hook
I bet you can come up with something fun too.
Go FnF!
It is a good idea based on your risk tolerance among other factors. Ackman has prefs as a hedge. Many other millionaires trust him with their money. I think he is paid 1.5% annual management fee. That is higher than the norm of 1%. I seriously doubt that one can become a billionaire without being highly intelligent and a better than proficient investor.
Go FnF!
I think that Trump wants the mortgage finance fix feather in his cap prior to the election so that he can campaign with it.
Go FnF!
Will Fannie Mae Be the Biggest IPO of All Time?
Paul Ausick
2 mins ago
??
The Federal National Mortgage Association, better known as Fannie Mae (FNMA), is one of several U.S. government-sponsored enterprises (GSEs) that has been supervised and regulated by the Federal Housing Finance Agency (FHFA) since the housing market crash.
The agency, along the Federal Home Loan Mortgage Corporation, aka Freddie Mac (FMCC), was placed under FHFA conservatorship in 2008 following an injection of $190 billion in bailout funds to keep the two GSEs from failing. Since being placed into conservatorship, the two GSEs have returned more than $300 billion in dividend payments to the U.S. Treasury.
About 20% of Fannie Mae stock trades over-the-counter and the remaining 80% of preferred stock is owned by the federal government. Last September, the Trump administration announced a three-pronged plan to overhaul Fannie Mae and Freddie Mac following a March order from the president. In October, the FHFA announced a more detailed strategic plan for the two agencies, which together hold about a third of the country’s nearly $16 trillion in mortgage debt.
The strategic plan for Fannie and Freddie includes three main objectives. First is fostering national housing finance markets that support sustainable homeownership and affordable rental housing. Second is operating in a safe and sound manner, and third, preparing for their eventual exits from the conservatorships.
For investors, the administration’s plan for exiting conservatorship is the most interesting and important part. There are three parts to the plan. First, return Fannie and Freddie to private control after recapitalizing them. Then create an explicit federal guarantee of the mortgage-backed securities issued by the two GSEs. And, finally, create more private companies to compete with Fannie and Freddie for mortgage purchases.
Returning Fannie and Freddie to private control means holding initial public offerings (IPOs) that could raise as much as $200 billion, putting the recent, world’s largest-ever IPO of Saudi Aramco in the shade. The Saudi national oil company raised $25.6 billion in a recent offering of 1.5% of the company on the Saudi Tadawul exchange.
The IPO Process Has Begun
In December, Fox News reported that the FHFA was interviewing potential advisors for an IPO of the two GSEs. Last week, the agency announced that it had hired Houlihan Lokey Capital “as a financial advisor to assist in the development and implementation of a roadmap to responsibly end the conservatorships of Fannie Mae and Freddie Mac.”
The contract pays Houlihan Lokey $9 million in the first year and may be extended for four and a half more years with a total payment of $45 million. Last November, FHFA director Mark Calabria said that an IPO could be completed in 2021 or 2022 “if all is going well.”
Technically, of course, an offering of shares in Fannie and Freddie is not an IPO. Fannie began trading on the New York Stock Exchange in 1968 and Freddie started trading in 1989. Both were kicked out when their share prices dropped below a dollar following their conservatorship.
Now, for the Politics of Recapitalization
A major contributor to the collapse of Fannie and Freddie in 2008 was an expectation that the federal government would backstop any fool thing the GSEs did. Investors always believed that, but the agency’s management, which knew better, also decided that the GSEs were not profiting enough from the housing boom. Fannie and Freddie assumed more credit insurance risk transfer by buying mortgage-backed securities that were stuffed full of risky loans.
As it turns out, when push came to shove during the housing crisis, investors and GSE management were proved right. The current administration believes that making the guarantee explicit may be required. Therefore, the federal government would extend a federal guarantee to any other FHFA-approved guarantors of collateralized mortgage-backed securities.
Recapitalizing Fannie Mae Is Not Straightforward
One item on the FHFA’s checklist ahead of an IPO is contracting with investment banks willing to underwrite the share offering. For a sale of this size, it’s not far-fetched to assume that a couple dozen banks will be lined up. That should be the easy part.
An especially tricky bit is what some big investors in Fannie Mae will want. Investment management firm Capital Group owns more than 11% of the outstanding shares, valued at more than $420 million at a recent price around $3.50 a share.
Fannie could recapitalize itself, but that could take another decade. The Trump administration doesn’t want to wait, so that leaves fronting more federal funds to Fannie, taking the GSE private or having a public stock offering.
Spending more federal dollars to prop up an institution that the administration doesn’t particularly care for is a nonstarter. Finding a firm or consortium that could and would put up $200 billion also may be a nonstarter. That leaves a public sale of stock.
That means paying Capital Group and other existing shareholders handsomely or wasting more years in legal wrangling.
Before that happens, the U.S. Senate and the House of Representatives will have to agree on what role the GSEs play in the U.S. housing market. Democrats, who control the House, want the companies to increase the number of less-wealthy borrowers who want to buy homes. Republicans, who control the Senate, generally resist affordable-housing policies, and some want the federal government out of the mortgage market altogether.
The big reason that the GSEs remain under the Treasury’s thumb nearly 12 years after being put there: only Congress can create an explicit government guarantee for Fannie Mae and Freddie Mac bonds.
Opening the Market to Private Companies
Once plans are finalized to recapitalize the GSEs and explicitly to guarantee their bonds, the third part of the administration’s plan would involve extending that guarantee to private firms that want to compete with Fannie and Freddie.
Creating more competitors in the secondary mortgage market would have “several compelling benefits” according to the Treasury’s September report. Among these benefits is helping protect taxpayers against bailing Fannie and Freddie out of the soup again. Another is leveling the playing field for private competitors by guaranteeing private sector loans as well as GSE loans (subsidies on loans would be passed through to borrowers rather than shareholders). Promoting innovation in the mortgage lending business is a benefit too.
One thing that should be clear is that whatever happens with Fannie and Freddie won’t happen this year. If Congress couldn’t agree on a path forward during the past decade, chances that it will suddenly agree on a course of action are essentially zero. The FHFA still has to find underwriters and figure out how much Fannie Mae stock it can sell to investors.
Also, those investors are going to want more than the vague notions about how the GSEs should be regulated and whether they can survive private competition.
At its peak, Fannie Mae stock traded at nearly $90 a share. Returning to even half that level would return more than 10 times the cost of a share today. A recent note from Nomura/Instinet even recommends the near-term prospects of Fannie and Freddie. In mid-2011, however, shares traded at about one-tenth their value today.
https://247wallst.com/housing/2020/02/13/will-fannie-mae-be-the-biggest-ipo-of-all-time/amp/
Well it didn't today. $3.505
Didn't make $3.51. BUT we can't have many more green days without busting through!
Go FnF!
YAHTZEE!!!
Go FnF!
Secret Plan to Buy Freddie Mac Is the Focus of Lobbyist Lawsuits
(Bloomberg) -- Two senior lobbyists for the Federal Home Loan Bank of San Francisco pushed a long-shot idea for ending U.S. control of mortgage giant Freddie Mac -- a problem that’s bedeviled Washington for more than a decade.
The proposal, pitched behind closed doors in 2016 by Lawrence H. Parks and Timothy Simons, called for federal home loan banks to buy Freddie using cash windfalls they won in settlements with Wall Street after the financial crisis. The plan was quickly tabled but got revived in 2017 when President Donald Trump took office and top administration officials made clear they wanted the government out of the business of running Freddie and its sibling, Fannie Mae.
The scheme ultimately unraveled and has become the focus of a legal battle that pits Parks and Simons against the San Francisco lender, which fired them in 2018. The two men say they are victims of racial discrimination, while the bank claims that they may have committed fraud.
The saga, laid out in a lawsuit Parks and Simons filed last month, reveals the jockeying for influence that’s gone on as Trump’s Treasury Department seeks to figure out a future for mortgage-finance companies that earn billions of dollars. Fannie and Freddie’s near collapse pushed them into the government’s arms almost 12 years ago. Their recovery, along with the crucial role they play in the housing market, has set off a lobbying frenzy among banks, hedge funds and other financial titans that continues to this day.
Parks and Simons embraced the idea of using settlement money to buy Freddie Mac while they were leading the Federal Home Loan Bank of San Francisco’s office of legislative and regulatory affairs. The two men had clout. Before being fired, Parks was one of the home-loan bank’s highest-paid employees, receiving $1.28 million in total compensation in 2017.
The San Francisco bank spearheaded the idea and in 2016 hired McKinsey & Co. to study it, Parks and Simons said. After hearing the proposal, the bank presidents voted not to pursue it.
Hope was rekindled after Trump was elected and the new leadership at Treasury revived efforts to end control of Fannie and Freddie, Parks and Simons said.
Parks said in an interview that he and other home-loan bank officials pitched the plan at a meeting with Treasury senior counselor Craig Phillips. He said Phillips encouraged him to continue the work and build support among outside groups.
The Treasury Department didn’t endorse the approach and wasn’t seriously considering it at the time, according to a person familiar with the meeting between the department and the bank.
Like Fannie and Freddie, the bank home-loan bank system is a government-sponsored enterprises and regulated by the Federal Housing Finance Agency. The plan pitched by Parks and Simons would have been a return home for Freddie, which was owned by the Federal Home Loan Bank system before being spun out to the public in 1989.
The plan ran aground in September 2017, Parks and Simons said in court documents, after another member of the San Francisco bank’s lobbying team falsely told a large meeting that the bank and two other home-loan banks were close to releasing a proposal.
The contents of that meeting leaked to news reporters, leading to a mad scramble among home-loan-bank leaders, most of whom didn’t know Parks had continued to pursue the plan.
Parks said he cut the employee’s pay to punish him for the misstep and that he believes the employee retaliated by leveling the fraud accusations that got him and Simons fired.
According to court documents filed by the San Francisco bank in a related case, an internal investigation found that Parks and Simons used bank contractors to help manage their own investment business, among other charges that the bank said amounted to “potential fraud.” The bank said the inspector general for the FHFA launched an investigation into Parks’ and Simons’ activities.
Leonard DePasquale, the FHFA inspector general office’s chief counsel, declined to comment.
Parks in the interview said that the internal investigation didn’t find that he or Simons had broken any laws and that the home-loan bank’s CEO was searching for a reason to fire them. He said the CEO and the bank’s executives had shown a pattern of discomfort with having black executives in positions of power.
A spokeswoman for the San Francisco bank said in a statement that it denies the allegations and “will vigorously defend itself.” She declined to comment on the proposal to buy Freddie. John Von Seggern, who leads the trade association that represents the home-loan banks, said that, to his knowledge, all work on the Freddie project stopped in 2016.
The San Francisco bank’s chief executive officer, Greg Seibly, announced this month that he will resign at the end of February to become president of another bank.
In a 2018 Securities and Exchange Commission filing, the bank said Parks’ and Simons’ positions were eliminated to streamline operations. It didn’t mention a fraud investigation.
Parks and Simons themselves haven’t left the game entirely. They now run Forethought Advisors LLC, a lobbying firm whose clients include Morgan Stanley and DCI Group, a public relations firm that represents Fannie Mae and Freddie Mac shareholders.
The abandoned plan wasn’t the first time Parks helped develop an effort to end government control of Fannie and Freddie while working for the home-loan bank. In 2015 on behalf of the Potomac Coalition, an organization that advocates on urban economic issues, he helped develop a white paper that urged recapitalizing and releasing Fannie and Freddie. In a Wall Street Journal interview, he said Fannie-Freddie shareholders, who would have reaped a massive windfall from the plan, had suggested authors for the paper and helped draft its contents. DCI Group promoted that paper.
https://finance.yahoo.com/news/secret-plan-buy-freddie-mac-090000668.html
The article is also on the fmcc page
Better check the quote
Go FnF!
Once again thank you!
Go FnF!
I would like to see that sometimes. On the other hand, without the afore mentioned criminals along with many other nefarious charecters, I never would have been afforded the investment opportunity of a lifetime. I think that if this works out for me I will hate the game and the players. I will be doing so from my beach house. I will be filled with righteous indignation while walking my beach.
Go FnF!
The bad news is I can't buy more under $3.
The good news is I can't buy more under $3.
Go FnF!
It looks like I will not be buying more today.
If we drop below $3.00 I will take the deal on more cheap shares.
Go FnF!
Come on Fannie! 14 more pennies and I will be forced to buy more of you!
Go FnF!
Is that 1.3 mil volume already?
Go FnF!
Why are all of you guys posting hidden messages? That's not fair!
Go FnF!
Thank you for the hard work.
Go FnF!
Not really a good or bad question. It is more like very good or even better.
Go FnF!
Nomura takes bullish stance on Fannie, Freddie
Jan. 07, 2020 11:06 AM ETFederal National Mortgage Association (FNMA)By: Liz Kiesche, SA News Editor15 Comments
Fannie Mae (FNMA) gains 4.9% and Freddie Mac (FMCC) rises 3.7% after Nomura Instinet analyst Matthew Howlett initiates coverage of the two government-sponsored enterprises with Buy ratings.
Expects "recap and release" of the GSEs in the next 12-18 months.
Has $5 price target for Fannie and $4.50 target for Freddie.
Quant ratings for both Fannie and Freddie are Neutral.
https://seekingalpha.com/news/3530158-nomura-takes-bullish-stance-on-fannie-freddie
Why This Firm Sees Massive Upside in Fannie Mae and Freddie Mac
By Jon C. Ogg January 7, 2020 12:05 pm EST
The government-sponsored entities (GSEs) are expected to see some major changes ahead. With the government set to remove Fannie Mae and Freddie Mac from conservatorship, Nomura/Instinet is expecting follow-on capital raises in April of 2021. While most analyst calls expect close to 8% upside in Dow Jones industrial and S&P stocks with Buy ratings at this stage of bull market, Instinet’s Matthew Howlett sees much greater upside potential as the GSEs are on a road to a strong and stable housing recovery as they exit the government’s control. The report predicates that there has simply been no viable solution to pry Fannie Mae and Freddie Mac out of the U.S. mortgage system and that these two GSEs remain as vital as ever concerning the health of the U.S. housing market and broader economy.
Fannie Mae (FNMA) and Freddie Mac (FMCC) were initiated with Buy ratings at Instinet ahead of what is expected to be a recapitalization and release of the companies over the next 12 to 18 months. Fannie Mae comes with a $5.00 target price, almost 50% higher than the current price. The $4.50 target price for Freddie Mac offers an implied upside of just over 40%.
Howlett’s aggressive target prices were based on expected capital raises in April 2021 as the ongoing process is still in massive negotiations. He also outlined an expected framework of a balance sheet restructuring and the expected capital raise that should satisfy all parties involved with reasonable values for the existing securities.
Instinet’s forecast capital framework is expected to be from a combination of retained earnings at the current GSEs as well as a $60 billion capital raise. When that is made, it is currently expected to be an offering of new common shares, a convertible preferred offerin, and also a perpetual preferred stock issuance. The report said:
Prior to this projected capital raise, we expect the Treasury’s senior preferred stock to be canceled and the junior preferred to be exchanged into common stock at the offering price. Pro forma for the exercise of the government warrants into common stock, the U.S. Treasury will own of 33% of Fannie and 29% of Freddie post raise. We expect the Treasury to sell down its stake over a five-year period and to realize $54 billion or more of value.
It is important to consider that the earnings targets that have been created are shown to be fully diluted and after the capital raise. For Fannie Mae, it sees core earnings estimates of $0.78 per share in 2022, followed by $0.82 in 2023 and $0.86 in 2024. Those estimates for Freddie Mac are $0.77 in 2022, $0.80 in 2023 and $0.84 in 2024.
Instinet’s view is that Fannie Mae and Freddie Mac will operate as near monoline guarantors of mortgages with insurance-like features that mainly stand in second or remote loss positions behind risk-sharing arrangements. The firm also expects that the firms will transition toward dividend-paying public utility models with roughly 4.5% earnings growth on a blended basis and with a low operating and credit expense structure.
There is a serious caveat here. The Treasury’s Senior Preferred Stock Purchase Agreement remains a major elephant in the room. For GSE reform to be successful, the firm noted that the Treasury’s stake must be eliminated. That was $191.4 billion at the end of the third quarter in 2019 and is expected to rise to $238 billion after the most recent amendment.
Unfortunately for income investors, Instinet’s report warns that it expects Fannie and Freddie to agree to a moratorium lasting two-and-a-half years on paying any dividends on its common stock so that they can build additional risk buffers to capital. That said, the report projects that the two will pay out approximately 65% of earnings as dividends by the end of 2023. Howlett further outlined how the dividends ultimately will trade at close to 7% dividend yields with an expected growth of about 4% to 5% on the annual payouts based on an expected 13% return on equity and 35% retention rate.
Both of the GSE shares were actively trading higher in Tuesday’s market session. Fannie Mae was last seen trading up over 5% at $3.45 and has a 52-week range of $1.45 to $4.23. Freddie Mac traded at $3.20, and its 52-week range is $1.34 to $4.04.
https://247wallst.com/banking-finance/2020/01/07/why-this-firm-sees-massive-upside-in-fannie-mae-and-freddie-mac/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2FRyNm+%2824%2F7+Wall+St.%29
Fannie and Freddie Rally After Nomura Sees ‘Recap and Release’
BY FELICE MARANZ
Jan. 7, 2020, 10:47 AM
Analyst starts coverage of common shares with buy ratings
Howlett cites stakeholder determination, value to investors
Common shares of Fannie Mae and Freddie Mac rallied to the highest since October after Nomura Instinet initiated coverage of the stocks with buy ratings.
Analyst Matthew Howlett wrote that he expects a “recap and release” of the government-controlled mortgage giants in the next 12 to 18 months. “Recap and release” refers to the process of bolstering the companies’ ability to absorb losses and then returning them to private ownership.
“Full privatization is not a trivial exercise, by any stretch, but we believe it is achievable, given the determination of the parties involved and the value proposition presented to the...
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https://news.bloomberglaw.com/banking-law/fannie-and-freddie-rally-after-nomura-sees-recap-and-release
Maybe somebody had a look at Calamari's notes for tomorrow's talk/speech. That may explain the low volume run up.
In any case
Go FnF!
ER is my early retirement
FP is when I will be fully paid
It is my fantasy so it means what I say it means!
Go FnF!
I can confirm that it will not happen 01/01/20
My New Year resolution is to let my fannie get huge. I will have such a big fannie that I won't be able to squeeze it into 7 digits.
Happy New Year!
Defendants will request a special circumstance Mae culpable extention which may end contingent upon multiple judges' untimely demise.
Just kidding, sort of.
Go FnF!
Exactly. I concur! Well said!
Go FnF!
FHFA’s focus in reforming GSEs: Capital, capital, capital
By Hannah Lang
Published December 26 2019, 9:30pm EST SUBSCRIPTION REQUIRED
WASHINGTON — Even though Fannie Mae and Freddie Mac are still controlled by the government, 2019 saw some of the first signs of progress in efforts to end the mortgage giants' federal conservatorships.
The Federal Housing Finance Agency, which regulates the government-sponsored enterprises, gained a new Trump-appointed director with his sights set on releasing Fannie and Freddie from the government's clutches. Mark Calabria took...
https://www.americanbanker.com/news/fhfas-focus-in-reforming-gses-capital-capital-capital
Oh come on, the court jester is always a favorite. Even a fool knows that!
Go FnF!
Tracking Bill Ackman's Pershing Square Portfolio - Q3 2019 Update (excerpt)
Dec. 20, 2019 2:46 AMPershing Square Holdings, Ltd. (PSHZF)ADP, BRK.A, BRK.B
Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are other long positions in the partnership - the holdings were disclosed in 13D filings on November 15, 2013, - as they are not 13F securities, they are not listed in the 13F report. Ackman held just under 10% of the outstanding shares of both these businesses - 115.57M shares of FNMA at a cost basis of $2.29 and 63.5M shares of FMCC at a cost basis of $2.14. The combined investment outlay was ~$400M. FNMA and FMCC currently trade at $3.32 and $3.11 per share respectively. In March 2018, Pershing Square said its Fannie/Freddie pfds now amount to 21% of the total investment in the two GSEs. Pershing Square said it is a hedge in case the resolution favors pfds more than the common. As of its Q3 2019 conference call, it still believed the risk-reward for the Common is more attractive than the Preferred in almost every case.
https://seekingalpha.com/amp/article/4313487-tracking-bill-ackmans-pershing-square-portfolio-q2-2019-update
Glad that you made it here for Christmas Arnold