Fannie Mae-No Politics (FNMA)

[Unhombrealado]

There are good reasons why this is unreasonable:

1. If the companies are released, then the govt will require and explicit, paid for guarantee for catastrophic losses. This would take 10-15% of share value

2. There will most likely limit the market share of FnF, in the long term they are the best positioned to succeed, but still market share will be reduced. This will further reduce market share. I don’t see how the govt would take away less than 30% of their market share.

3. Dilution for recap. Need I say more?

So shoot for about 20-40% of your estimates, if that. Still much better than todays price