Fannie Mae (FNMA)

[contrarian bull]

With The Supremes turning a blind eye to the injustice inflicted on f&f I'm kinda giving up on any sort of recovery.

This leaves us with just the value of f&f as they stand.

Expect no more than face value ($25 or $50) best case for junior preferred.

Expect f&f will get no credit for payments so far against senior preferred. Also expect warrants to be exercised. This limits upside for common stock to between $10 and $20.

Market is adjusting to this new reality. I expect junior preferred to hang out around 25% of redemption value until recap begins to accelerate. I expect common shares to be worth just a few bucks until they rebuild that $3B cushion - then maybe $3 or so until recap gets serious late this year.

Oh well - would have been nice to get something better. Now we will at best see a 5 to 10 bagger with these stocks.