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Condensed reading of article from :::
Holly LaFon
GuruFucos
Bruce Berkowitz Comments On Fannie Mae And Freddie Mac
Guru stock highlight
August 01, 2018
This month, the Fifth Circuit Court of Appeals ruled that the Federal Housing Finance Agency (FHFA), Fannie and Freddie’s conservator, is unconstitutionally structured, as the court concluded that a variety of factors unlawfully sheltered the FHFA from presidential oversight. Although the Net Worth Sweep was not vacated, this is a positive development for shareholders, as it increases the odds of further review by the en banc Fifth Circuit, the Supreme Court, or both. However, by a two-to-one vote, the Fifth Circuit rejected the plaintiffs’ argument that the FHFA exceeded its statutory authority under HERA and that the Net Worth Sweep agreement violated the Administrative Procedure Act. Judge Don Willett, the lone dissenter, provided a powerful and highly persuasive dissent concluding that “the net worth sweep strips the GSEs of their capital reserves, and it isthus antithetical to the FHFA’s statutory command that it ‘preserve and conserve the assets and property’ of the GSEs”. When acting as conservator, HERA does not authorize the FHFA “to bleed the GSEs profits in perpetuity.” We agree and the Eighth Circuit, which has yet to rule on Saxton v.FHFA, was notified of Judge Willett’s sound analysis.
Meanwhile, Fannie (FNMA) and Freddie continue to report strong quarterly profits, highlighting the strength of the core operating franchises. Had the Net Worth Sweep never been implemented, Fannie and Freddie would have retained earnings well over $100 billion, which highlights how quickly capital can be restored. Trading at approximately one-quarter of their intrinsic value, we continue to view the preferred shares as an excellent investment.
Hear! Hear!
But what he said was, he can keep adding in the fund that “had” 9.98% and he is not required to report it.
Actually, per SEC rules, any OTC or Pink Sheet stocks are not required to be reported even if the fund is over 10% limit. Ackman stated a few years ago that he would no longer report the purchase of common shares in his funds reports since its not required for this category and the gov is being so stubborn. And at that time he was around 9.?% ... so, he’s probably a good bit higher now. He mentioned in one client letter that in some of the dips into that low $1 to $1.20 range ( back during that quick dip to $0.9? ) that they were buying “substantially buying shares”. And No, I’m not going to find the report for you.
You know damn right!
I know ... just a good single sentence about how FnF we’re wronged and that wrong must be righted. Boom!
Still holding. I must like the pain.
What were the list levels?
Wow! Might be gone Before the midterm elections.
4 to 6 bankruptcies out of 500 ... I’ll take those odds and that business team any day of the year.
The Trump Organization is the collective name for a group of approximately 500 business entities of which Donald Trump, the current U.S. President, is the sole or principal owner.
One thing I would like to know ... Sweeney??? Where is she? Maybe someone should check the bathroom. The door may have stuck. Or maybe one of the Clinton’s “dump trucks” found her. They’ve “found” plenty of people over the years. Just sayin!
Yelp, you’re right. That was Layton. Thanks. So I guess he’ll announce a leave date next.
Hopefully. His recent interview saying he didn’t see FnF coming out of conservership during hit tenure ... yes, that’s now a positive.
I also had a wonderful ride on AAMRQ. Lots of negative nanny’s in those days. You’re right ... This will dwarf those returns. It will be fun at The Wynn when we win!
Just need Bradford to move his couch. ??
This week? ... maybe not, but I’ll take it. But with the Collins vs Mnuchin three judge panel sending it back to District Court to “strike down the statutory limit on the presIdent’s power to remove the agency’s director” ... maybe he can be removed sometime this quarter. Not really sure of a time line for district court to act though.
I’m really just hoping you feel like moving your couch ... sometime soon.
Detearing, you still keeping your list?
Otcmarkets.com is still reporting. About twice a month. The report is usually out a couple weeks after the end of the month or the 15 of the month. FMNA current report 6/29/2018 is down 56% from last report on 6/15/2018. Every report starting on 3/29/2018 has drastically dropped. The numbers don’t lie. Shorts see no interest in this issue now. Hold on tight. See ya in Vegas with Detearing.
SHORT INTEREST
DATE SHORT INTEREST % CHANGE AVG. DAILY SHARE VOL SPLIT NEW ISSUE
06/29/2018 2,574,750 -56.93 7,577,974 No No
06/15/2018 4,044,896 -36.35 5,945,586 No No
05/31/2018 5,298,975 -23.67 10,680,309 No No
05/15/2018 8,462,529 -37.38 7,235,924 No No
04/30/2018 14,713,721 -42.49 3,976,021 No No
04/13/2018 22,830,479 -35.55 6,812,199 No No
03/29/2018 29,844,364 -23.50 8,138,406 No No
03/15/2018 31,760,845 -6.03 4,090,689 No No
02/28/2018 31,918,864 -0.50 6,968,24
Can't wait till the day that articles are written about the FMNA & FMCC saga like this one was written about the AAMRQ days ... after we were victorious ...
https://www.star-telegram.com/news/business/aviation/american-airlines/article3836732.html
It was ONLY voted out of a House committee 33 to 27 (barely). Getting voted Yea out of the full House is a lot harder. There are 434 representatives in the House. Relax!
I normally don’t post. (Yes, a lurker). I’ve been in FnF for a long time. Made lots on the AAMRQ trade. A lot of the oldtimers from AAMRQ are innFnF.
I have seen this arguement before about how many shares the big boys have in their funds. Ackman gave the answer to this long ago ... he said (not verbatim) ... with the gov holding out the documents from the public, our funds will hold out reporting on all buys/sells of FnF and percentage of FnF owned by our fund being that it is not required to report per SEC reporting rules governing the OTC market, unlike NASDAQ and NYSE markets.
I’m not going to argue this point or dig through 3 to 4 years of statements and reports to prove it. Take it or leave it.
See ya at the top!