Fannie Mae-No Politics (FNMA)

[tcj]

Example of intelligent response "bro"

in my opinion there could be 2 flaws with the kbw analysis:

a) he might assume all of the capital proceeds need to be raised immediately rather than over time

b) it's circular, if the stock price rises then far fewer shares need to be issued, creating a higher current fair value

in addition, there is some small chance the warrants are not exercised.

the analysis of this investment is time consuming and stressful ---- many people don't want the career risk to be associated with this call, and thus they come up reasons (that sound good) to stay away.