Fannie Mae-No Politics (FNMA)

[capitalismforever]

One more thing about Ackman's 3 year old analysis, it called for a 7-10 year plan. That's a long time to wait to get paid. AND, he based his valuation off of a 60 basis point G-Fee. Today, g-fees are 10. Nowhere close.

Almost forgot to mention, his net income assumptions are $17b - $29b. Fannie Mae's net income is nowhere close to that. His valuation has nothing in common with rationality.

One last thing: he combined both companies in his valuation. The $47 pps stock price is the consolidated valuation of the GSE's, not for Fannie Mae. People have been warping his valuation for awhile.