Fannie Mae-No Politics (FNMA)

[big-yank]

I respect your positive attitude. If you are a long term buy-and-holder with considerable patience, that over time could pay off handsomely. However, in that mode, you also need to prepare for the inevitable next step which will be a reverse split, likely a 1-for-10 as transpired with AIG whereby you will also have 1/10th the number of shares you now have. The reverse split is required to attain the third "R" which is relisting to the Big Board. Fannie must get off the OTC to be eligible for institutional purchase with many major funds and retirement advisors.

What that erodes is not so much the value of your investment as it is the erosion of future common dividend income which is given on a per share basis. Thus the pre-conservatorship common divvy of around $2/share becomes the equivalent of $.20/share.