Fannie Mae-No Politics (FNMA)

[Donotunderstand]

2.

?

If the company issues out 4B shares at a 20-25 dollar PPS -
and the market buys them (as it should since F is worth about 100++ billion easy)

it is not dilutive if the pre secondary issue price per share is the same or lower than then price of the secondary offering

There is some inter laying of book value and market value here and my finance background is not that detailed --- but lets realize that Fannie issues the stock so the money comes back to Fannie ........ (very different than GOV issues the stock and keeps the money !)

think of it as a 5.2 Billion share IPO v a 4B share secondary offering

yes - we the original holders get diluted as we no longer are 100% owners. That is clear. But we now own 20% of a much richer company .... with say 10 years of earnings collected in cash upfront (say NPV of 12 years of earnings) in return for that dilution

I will gladly make that trade to be capitalized immediately

That is why I have argued to negotiate for the GOV to use the warrants and for proceeds to go to Fannie ... same difference
??