Fannie Mae-No Politics (FNMA)

[big-yank]

Donot, I think part of the flaw in your pro-forma is the $10 B in Fannie Mae earnings assumption. Remember that there are $3 B in dividends that are not being paid while government grabs all the cash. If you discount down the projected income to more like $7 B with divvies restored you come up with more like a $14 per share recovery. That's pretty close to my $12 guesstimate, yesterday. Personally I would be pleased with a released FNMA $12 FnF common S/P and with dividends restored, even at a diluted 10 cent per quarter rate. Those numbers will only continue to rise in forward years after release. And if the warrants go away, either via settlement or court ruling, apply the 5X multiplier and buy yourself a real nice yacht.

Just trying to help. As many heads as we can bang together on this, the better an estimate we'll all come up with.

There was some real useful content on the board yesterday, even with the snarky comments, here and there. Thanks to all who contributed.