Why waste your time responding to my post!!!!
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Ok the first simulatory is that the both get sold to investors with a fixed rate weather divi or interest. 2nd reason the prefered shares of fannie are like a bond is they can be recalled, and many have, and you are only owed the par rate, no matter what the price. So if they recall the shares you basically loaned them money, as they can never take your common stock as you are owner. They can only dilute you. Also a bond trades and you can lose money on bonds, the only guarantee is the par rate of the amount it was for. If the company you bought the bond for even has the money to pay!!!!!!
obv it's an isurence policy , but unless there is a clause written when and why they can exercise it, then they can at anytime. Though it would be drastic, and would only do it for extreme reasons. Though warrents are given to CEOs in compensation packages, big investors get warrents to hedge as a billion dollars in stock of any company is a lot of shares. A warrent protects the investor from a pice drop, as if he exercises it when the stock is down, he gets the fixed price. In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise[clarification needed] price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities. Both are discretionary and have expiration dates. The word warrant simply means to "endow with the right", which is only slightly different from the meaning of option. Uses: Portfolio protection: Put warrants allow the owner to protect the value of the owner's portfolio against falls in the market or in particular shares.
Low cost
Leverage
You read to quickly. I said its like a Bond, but trades like a stock. Ok bonds have fixed interest rates on a par vaule, though they get traded and vaule increase or decreases, though a bonds vaule changes are minimul, where the stock that's like a bond can increase 100% in a day in vaule. It's comes with a fixed rate dividend as common shares do not, they get what the board decides. Main word it's like a bond, also said in a way and explained why, and if you know what a bond is you would understand, obv of do not. An option is like a warrent, but they are not the same!!!!
I can mention anythjng I want. I mentioned the unjustice of it. Are you thinking I am bashing the stock, as I said the vaule is worth 40-50 a share. Though will not be unless people speak up and put pressure on congress.
also I have never heard of a warrent like that, had most people do not get warrents to punish a company. A warrent is a right to buy a stock at a specific price before it expires. Keeping a warrent protects the person from a price drop. As if the price drops they can exercise it for the fixed price. If the share price goes up then the excersie it and sell it at current price. A warrent to only be exercised if a company doesn't comply, maybe but used for special reasons, not has an investment tool. Boards are given warrents, big investors are given warrents instead of sock as it's safer.
When did I claim they would excersie it????? I 100% in some post, said it will really never happen, has its a ridiculous 80% at 000001. But it's good for 20 years. The warrent actually shows intent to.give back control sooner or later. As why it is good for 20 years, basically a warning that if they mess up, they will excersie it. They would never exercise it for profit or smart bussiness move. Though very unlikely, our govt has proven to be unpredictable with power Lately.
Also the tresury recieved 1million senior prefered shares, at a par of $1000, making it worth 1billion. It also has a fixed 10% divi rate. Senior means they get paid first before any other prefered shares. They took all voteing power from shareholders. (Which I was wrong, I saying common shares had no voteing power) they do, but with a over a billion shares its almost impossible, for a take over) I have to read into that, as I know they would never allow a takeover. So the fed can not be paid less then 100million every divi period. That went towards the debt as they structured it that way. That is not interest as you thought. That's hoe they agreed to get paid back. Then in 2012 the amended the agreement, saying the tresury will provide a open line of credit. I think somehing like 200billion. In return they take all the profits, called a profit sweep. So no profits go down in the books. They actually write zero. Now even the tresury can not even recieve dividend payments. Fannie still owes the govt money. They paid back more then they got, but through he profit sweeps. The govt wants to hold them down, to keep power, as if fannie can stock pile a ton of cash, the gov will have no exuse to hold it. Also no Ceo of a company would agree to this deal, as it hurts then company and helps the gov. also if the company were to. Liquidate the tresury would recieve a billion dollars before anyone, as they are senior prefered and with a billion par vaule total.
Ok please read slowly. Fannie Mae has many different stocks you can buy. I think there is around 10 different prefered shares, and then common stock. There have been many other prefered shares but they recalled them. Despite its name, preferred stock in many ways resembles a bond. Par, in the case of the Fannie Mae "S" series preferred shares, would be $25 plus a quarterly dividend that varies over time. Fannie and Freddie suspended dividend payments when the GSEs were placed into conservatorship in 2008. But under traditional corporate finance laws, preferred shareholders would be entitled to recover all the missed dividends plus $25 per share before common shareholders would see a penny. Its like a bond , but. It trades like a stock as it has the vaule of a common stock as well. Though a fixed rate divi makes it trade much higher then common stock.
Do you have an opinion of buying the other prefered shares at the 5-6 range? They have a par vaule of $25 some $50. Obv they are worthless right now with out Divi payments. I feel if the Govt were to give up control down the road, the first thing they will do is clean up prefered shares with a buyback. As they might want to keep paying those interest rates to save money. They have to pay as stated, if they recall the shares the par vaule. Also a big reason they might buyback shares is, that the price will be way above par value, when the govt gives up control. They state the shareholder is only intitled to par value and any divi if their was one. So buy at five let them have it for 25.
Also i feel, to quiet people down, They might give back a piece of the profits. Prob not enough to trickle down to common shares as the prefered will get first dibs. The price of commons shares still will jump, on that news, as divi is not the true vaule of the common stock, its just a bonus.
I posted before a conservator, is supposed act in the best interest of the company/stockholders they are put in charge of. which is the same as ,FHFA as conservator is to or preserve and conserve the value of the regulated entities.
FHFA as conservator, is a conflict on interest. They were created in 2008 by the GOVT, and put them in charge, at a time fannie did not need any loans. They had plenty of money, and raised 2 billion a few month before via preferred shares. Though the law made in 2008,gave the Govt power.
Everytime they need to do something, they just write a law and pass it. Its seems like every year they are changeing the agreement, to gain more of a strong hold.
Only way to beat this, is that if any of these hedge fun lawyers can prove, any of the laws or provsions,made violates the constitution.
If thay does not work, The people need to rise up. Everyone who buys in at this price, should invest 3 quarters of your net worth into this stock, then spend the rest and hire those guys that like to protest anyting. Then occupy Washington Dc or in front of fannie building. Just like occupy wall street. << sarcasm, reason to invest 3 quarters of your net worth, is becasue if this was a fairy tale, the Gov would release control, and the stock should be valued around 40-50 as of now.
exactly, Though apple has 150 billion in cash stacked , and has never relased a divi.
which many hedgefunds are trying to pressure apple into doing so.
You know when child stars rakeing in the cash and their parents are conservator over there money, but spend it all on themselves. So much that the govt had to pass a law to protect, child stars.
No one would ever belive, parents would use and abuse, The money their kids worked hard for.
Also a conservatship is not a permanent thing. Fannie is showing record profits, and makeing that money under stricter regulations. Tresury started the Profit sweep in 2012, to keep them in debt to the treasury, and if they can not stock pile money, to have enough under regulation, It makes them not look fit to realse the conservatorship.
Fannie mae does not need tresury money, they are operateing on thier own. The amendment change in 2012 to sweep all profits, was in return to an open line a credit.
Ok though FHFA orn the GOVt had no legal authority to put Fannie under any Conservatorship, until they passed the law in 2008.
GSE : GSE securities carry no explicit government guarantee of creditworthiness,[8] but lenders grant them favorable interest rates, and the buyers of their securities offer them high prices.T his is partly due to an "implicit guarantee" that the government would not allow such important institutions to fail or default on debt
Implicit meaning:1. Understood though not clearly or directly stated
2. not affected by doubt
The Govt made up this law to take over, And keep making laws and churing words to make it sound like its best for the country. Privite money and citizens funded this bussiness, now they are trying to steal it. Why not put Bank of america un Conservatorship???? Also the banks sold these bad loans and sued them for 200Billion on behalf of freddie. Why did need a loan less then what they won in a lawsuit???
The GOVS only job really was to make sure fannie/freddie were look over as the goverment backed them in name only, they gave them a good credit rateing. Fannie and freddie was the idea of congress and set regulations, but wanted it to run privtely, and used citizens money. Thats why they ipo a new prefered share all the time, with high set dividand rates, with a par value, though the risk of those prefered shares, is that fannie at any time can call those shares back,and you are only entilted to par value.
The Govt claims fannie doesnt need the cash, as they have the treasury at their disposal when needed.
The treasury took it!! Not even towards the debt we owe them. Fannie has not paid back all of the boarrowed money, as the money they are takeing now, does not go towards the debt. As the way fannie was paying back was via their 1million senior preferd shares with a 10% dividend rate, and the shares par value were $1000. Now they just are taking the profits, and fannie is not going into fannie account.
a the big difference in PPS is becasuse the profits on paper of fannie is ZERO, On their balance sheet O. They add no money to thier personal pile. As the govt told them no need, they will supply the money. So technically only indicators that should be looked at is these lawsuits,and what info is coming out about govt, giving back profits.
No clue, though tiffin is deff not needed,as I do not know why people thought he was a big shot in the first palce. Cause if the bio of his past positions. Big corps have 100 presidents, and ceo titles though of little areas of the big compnay, with one big hancho CEO. Though some people jut write Ceo instead of Ceo and of what division of he compnay. Cause the person isn't lieing he was a Ceo, just not the Ceo people think of it as.
The end decision ends with congress, if there is anytime to change its now. Though 2016 is close and no party wants to stir any trouble for their candidates. Where's Mitt Romney when you need him, he turned around troubled company's for a living, what did Barack do??? Graduate Harvard and get elected prez??? Lmao
What does that mean? I don't know what rights, you mean they took away voteing power by issues senior prefered shares. Common stock holders never had any voteing power, like some company's allow. You can own 99% of common stock and have no say in the company. Reason for making s bunch of different prefered shares is to protect them from any kind of take over. When a person is put under a Conservatorship, it takes your control or say in what ever the matter, but does not take away your rights. They call it a Conservatorship, more like a Receivership. Also this is not about the dividend, the dividend is more important for the prefered shares. The board always had the power to deny a dividend at anytime. A dividend is not a right of a shareholder, it's a up to the board. As fannie and Freddie needed shareholders to raise money at any time they were smart enough to pay a good dividend to common stock. The only rights that they can take a way is the rights the gave you when you bought the stock. Though thier are laws and constitutional rights when it comes to free enterprise and laws of antitrust acts. Anti trust laws, made to keep the market fair. Tradeing morgtages is a bussiness, and now that fannie/Freddie have unlimited money, other investments can not compete.
How bad should we feel if Fuse makes some crazy drone technolgy, by selling penny stocks, when the govt uses billions of tax payers money, building and researching drones. Lmao!!!! Also they stole this idea from wolf of wallstreet, when Leos first day at the penny stock place. The guy tells him, they are selling shares to a company making remote control planes, or something, out of their garage.lmao though that was 1990 now we are in the drone age.
Not one add as come up, only adds I see are on the side of the page, no pop ups, prob cuz iphone is a quailty product that blocks them.
No pretty easy. We're you implying that you can not use an iPhone because of adds would be freezing up my screen. I'm also a pro on the phone. I'm a young guy.
I do not smoke, though now I'm thinking what your smokeing has made you slow. As my post might be rants of my opinions, with bad grammer, as I type from a small iphone, your post make no kind of statement or question that makes sense. Your reason for bashing me?? As I support this stock 100%, but am speaking out against the govt. All my post are my opinion, and call them crazy, but do not respond to my opinions, with ur idiotic opinions stateing them as facts.
Fannie Mae actually sold a new prefered.share, I belive the 8% series T , and raised 2 billion. This was in 2008 a few months before conservtiship. They were fine, and way above the liquid needed on hand. They did take big losses,but could have covered them With the cash they had. The govt used this tactic to take heat off them, from bailing out the bank. Fannie has given much more then they have borrowed, and were being paid back via the prefered shares with a 10% rate. Then in 2012 signed into angreement that the treasury will take all profits, and allow them to borrow money in the event of any loss. No Ceo or board would ever agree to a deal like that. A conservtiship should be making decisions in the best interest of the company/shareholders, and not the govt or taxpayers. There is a conflict of interest as the FHFA was formed into 2008 by the federal govt. Fannie is makeing high profits even under more regulation. So what is the governents concern. The govt pressured banks into to making these ARM mortgages, for first time homebuyers. Though they tend to forget, every govt run thing or good idea to help, gets taken advantage of, as they do not have he direct power to oversee it. I have not lost a penny or made one on this stock. They are keeping me from making any, and possible life changeing money for people, as this is their chance to but a distressed asset, they has turned around and numbers do not lie, fannie common stock on the numbers should be $40-50 a share. Though the books say zero profit, as they take it all. That goes against everything this country speaks out against. When we see other govts overtake big company's. Fannie would be safer running from China!!!!!
Wait for what? Obv you have to wait. In all my post I say IMO it will be about 5 years to see 1000% gain. Though a few 100% within the next couple years will be possible if citizens take a stand. The govt is for the people. How would the American people feel if the govt put McDonald's under Conservatorship, because the country is becoming obese. Americans do not mind because they have no idea what freddie and Fannie actually did. The middle class can care less about big banks, and wallstreet guys. They need to realize the avg middle class Americans are being hurt by this. People who have already lost, including retirees who bought the prefered high intrest rate stock, as a source of income. Also it effects people loseing money as they allow the shares to trade, on the orcbb opening it up for people to take losses on a 50% dip becaue a lawsuit gets thrown out.
Yea they are senior prefered shares, 1 millions shares at a par vaule of $1000 each, I think that makes them owners, as they have more rights then common shares, and also the previous prefered shares that they made junior. Also he warrent for common stock to own 80% equity, can not be revoked as it is good for I think 20years. Although I highly doubt they would ever warrent it.
at the inception of the conservatorship, each GSE shall issue to the Treasury US$ 1 billion of senior preferred stock, with a 10% coupon, without cost to the Treasury.[6][28] Also, each GSE contracted to issue common stock warrants representing an ownership stake of 79.9%, at an exercise price of one-thousandth of a U.S. cent ($0.00001) per share, and with a warrant duration of twenty years Treasury=govt even though they
This is not your avg public company, where 10% gets you a seat on the board. this 2 dollar stock is common stock, with no voteing rights, only certin shares have them and they are not sold as they do not want anyone walking through the door. There is no was you can do a corprate takeover on fannie mae by buying stock. Also the only voteing shares are owned by Govt, as they took away all voteing rights from the people who had them. Why do you think ackman has to sue them, instead of going into a board meeting, where he usally sits on many boards by buying a big postion. Also again big difference between common shares and prefered. Prefered get laid first and if they go out of bussiness and liquidate they get dibs, then common shares get the crumbs. Also why common shares are much cheaper.
Have you look up all the different stocks that Fannie Mae offers. Prefered shares? They have different kinds with different clauses. They return dividends on a fixed rate. So the prefered series T pays a fixed rate of 8% dividend. The stock par vaule is either 25 or 50 bucks which they were sold for. Though these stocks sometimes get expensive as 8% intrest that's was soppoesed to be almost guaranteed as they make a lot of money. The biggest risk of prefered shares is that fannie can redeem them and take them back. Though they must pay you the par vaule either 25 or 50 what ever one it was. If you bought it at 100 and they recall your only getting back the par vaule, I think. I know in the fillings it stated that's all your entitled too is the par vaule, but I couldn't see them recalling while unbove par,unless needed to be done for some real good reason. So the share is only aroun 5.50 a share. I was thinking that Fannie might decide a way to clean up and save money, then laying 8% rate they will reedem them and have to pay you par vaule. That's jusy imo. I read nothing to even suggest that, but I do know they will be tight with money for awhile. Plus prefered shares get paid first for dividends or any liquidation if the govt ends up winding it down and distrubites any equity they have to give back. There's really no reason, anyone should not put any amount of money you will not need to touch for 5 years and let it sit, don't buy on margin, so if it does drop in price, it is only a loss on paper, then wait for it to go back up to 2 bucks and if you wanna sell, sell. No way you can lose any this price in IMO. I do feel there can be. A drop of 50% on any kind of bad news, which is why do not buy in margin if you can't cover your margin call. Though it will recover back to 2.
He has the power and money to lobby and get the word out , and get on tv. He also has many other invesments to worry about too. Im saying though he has no power as is votes in the compnay, as he is has the same rights as a guy with a few shares. The govt or fannie is not going to sit down with Bill ackman and work things out. This is like apple getting sued because they have never paid a div and have billions in cash sitting around. Carl ichan, whos fund is much bigger hen ackmans couldn't do anything, and he owned a ton of Apple. These company's have different classes of stock some with voteing rights and certin clauses. They you have company's where every share is a vote and you need 51% of shareholder. Which is usally hard cause the boss will hold 51%.
What's not true? What power does he have? His stock gives him no rights. The way a guy like Bill ackman gets power and on a board to help fix a company is buy a big amount of stock with voteing shares or enough to go and get the few more votes on his side. He over took a medication company that wouldnt merge with the one he. Had stock in. He went around the country to get board memebers on his side to get enough votes. Common stock does not give you any voteing rights in this company. Plus the govt took all voteing rights aways from all the shares that had voteing rights. Mark zucketburg only owns about 15% of facebook, but his shares are voteing shares and he himself has 3 out of 5 seats on the board. So on one can over throw him. Even if you owned 99% common stock of Fannie Mae you would not have any say in the company.
Hedge fund mangers do what they want, your talking about brokers who don't sell or online brokers don't sell otc stocks. These guys are investors, Bill ackman runs a billion dollar hedge fund and he bought 10% of common shares. Berkowitz Owns a billion dollars in preferd shares, so he will benefit from any type of profits as as prefered shares are first in line for dividands.
Carl ichan joined the fight and he battles with ackman in the market. Even though it was a very small postion for a guy like Carl ichan, I think he invested 60 million. Then Bill ackman this is very good compnay. You have to understand. That you might wonder that this is too good to be true, why aren't the wallstreet guys buying it then, because they can't have money sit waiting that can take years, as the need to brinvest in yearly returns. They also can get in much latter on when they see it for real. They have so much money they if you bought it at $2 and it went to $40, a big edge fund can get in at 30 and make 100x what you made. Not percentage wise but cash wise. So they are just useing thier money in other investment waiting. The avg person doesn know to look at fannie, or they don't even pick their own stock. I have made two major trades all on my own with no real dd, I never looked at there balence sheets or anything, I went off market psychology, one was Bank of America at 5.59 to 6 a share and sold at 12 as I didn't know where it would go from there, which I lost a little as it reached 18 a couple weeks ago, now down to 15. Iv had my eye on Bank of America since the market crash in 2008 and pissed I didjnt invest. 6 dollars you don't have to be a genius to know its undervalued, as all the negative press of the lawsut they had to pay.
I am saying bill ackman has no power, he has the same power as a person with 100 shares. He owns 10% of this common stock, with no voteing power. Even though the govt striped the prefered shares voteing rights, as the govt has full say now. He just has a lot of money invested, and has money for some of the best lawyers. The govt will not settle the case. This is not a lawsuit you hear on tv, where people settle out of court. When Bill ackman usually buys 10% of a company which is huge in any company,the 10% which is a lot of shares, though if the company were to liquidate, prefered shares get the taken care of first, and common stock gets the crumbs but Fannie Mae has tons of shares and different classes of stock some with voteing power and a seat on he board, which in other compnays he does, and people listen to him. Not here, you can go file the same lawsuit if you own stock and feel the fovt is takeing your profits as an owner of the comlpany.
I feel buying the 8% series T prefered stock is a good buy, I belive it at 5.50-6 and par vaule of either $25 or $50. When the govt gives back control or maybe before, they will want to recall all those high inteest preferd shares to save money. They are allowed to take back prefered shares when they want but no matter the share price they must pay what ever the par vaule was. So buy at 6 let them buy it back for $25 or $50. Plus those prefered shares are first in line for dividends, though now the gov shares get their share first as their shares are senior. Then common stock gets the left overs. Though like I said as long as there is money going to shareholders the dividend on common stocl is not that important. When the stock was at 70 dollars they were only get a 20-30cent dividend, so even if they give alittle any common shares get a penny or even nothing the stock will rise 20-60% on the day they relese any profits, as that will out faith we are moving in right direction. Leading up to the the first lawsuits decision the stock upticked, and dropped almost 50% because it got thrown out. The people who sold off, either was just trykng to make a quick buck on possible good news to sell on the uptick, you have people that waited for the news and can not let there money just sit. Or a guy on a huge margin wanted to sell before he had to cover. Other then that I always tell people IMO it can take 5years, but in 5years you can see %1000 + return on any amount, as it will be a liquid stock. 100,000 investment 5 years 1mill u made. Obv that's just a perfect sernerio, but numbers do not lie those profits and their blance sheets proves that ist a $40 plus stock.
If the case doesn't get thrown out, and makes it to trial which ackman really prob does not want, as trials like that against no other then our us govt will cost a ton. Though if bill really deeply feels wrong, and not doing this on a bussiness decision because he owns 10% of the common shares he might pay, but the money comes from his fund which his investors wouldn't like much.
Not a deal between the govt and any of the hedge funds. Though they might come out later and decide on thier own its better to give back some of the profits. Though they will not be in a room making a bargain. Bill ackman as no more rights then any shareholder. He just has billions and can afford good lawyers. You can file a suit ur self tmw if you want .
There's one thing people in this country hate more then big bussiness, that's big corrupt govt, doing what they please. Changeing and making laws to their benfit on a thin rope , violating constitutional.rights, though if a court does not agree, then we can not do shit. Obv nothing will come of posting on ihub. I'm just more or so just bored at the moment!
The govt backs their action up by saying we are taking this money to give back to tax payers. Come on, yea that sounds good, but is that cutting taxes, or they sending you a check. Also many people in this country hate big company's and rich Wall Street guys, but they tend to forget that avg citizens and retirees that are not wealthy invested in this company, and he big wallstreet Gus are investing the little guys money, there billions is made up of many avg investors. They need to know the govt just took over a publicy trade company. As a shareholder your an owner. The govt is taken your companys profits, which is privite property. Also the consertiveship fine, fannie is makeing a killing under it. That doesn't entile them to all the profits. The govt should have been regulating the market before the crash. Plus the Watt who is in charge, is a conflict of interest. a conservter is soppoesed to be looking out for the best interest of the company, not the govt.