Fannie Mae-No Politics (FNMA)

[IL Padrino]

These stocks are very difficult to understand. Hopefully there will be some type of jump in SP once they physically have the $$ on the books, but realistically, that should be priced in already.

They jumped 10% initially on the news of retaining capital and have been down since. Extremely weird to say the least.

FNMA and FMCC Will EACH Have $3 Billion Cash On December 31st.

Do the math on how much Fannie & Freddie are worth today based on $3B in cash with approximately 1200M and 600M shares outstanding.

I am thinking that not a lot of people are actually aware that they are worth minimum $5 share without even applying a PE multiple.

Industry average for mortgage companies currently at 22 PE.

DO THE MATH PEOPLE. SIMPLE!