Fannie Mae-No Politics (FNMA)

[Zargis]

Ackman suggested a high of $24.00(I think it was 24) to $47.00, with full dilution.
He expects higher if the warrants are cancelled and he rightly should as he is suggesting a price that without warrants is 1/5th the value as when they are used by the government.
I.e. without warrants ackman suggests a conservative 10-year view of $235.00

I suspect if warrants were cancelled this price would hit within 2-3 years.


The board has suggested, with warrants expired, as high as $325.00. This is still possible with a housing boom in full swing, in my opinion, or even higher. However, I prefer to take a stance similar to ackmans - and did so before him - but expect a shorter than 10 year timeline. I am confident he stated such a time line for many reasons.

Those who know little on the board expect such a figure immediately. Those who understand it is possible with full warrants removed, expect 2-5 years for that height.

Be well,

-zargis