Fannie Mae-No Politics (FNMA)

[kthomp19]

FNMA earns $12 billion annually. Based on eps they can easily trade at $160.

That's with no dilution. The warrants alone divide that number by 5, and the secondary offering and a junior conversion only drive it down further.

I bought FNMA based on dividends they routinely paid prior to conservatorship.

This is quite telling.

I hope that with his dog-eared copy Calabria returns FnF to the shareholders and pays proper restitution.

Calabria neither has the money to provide restitution nor the authority to force Treasury to. I sure hope you're not expecting the government to ever admit any wrongdoing.

May I ask why you and Clark are so convinced that FNMA won't get to $160?

I'll add myself to this list, because I don't think it's going much above $8.

The short answer: dilution.
The long answer: diluuuuuuuuuuuuuuuuuuuution.



And the idea that the boards should be able to independently decide how to recap is a perfect example of wishful thinking. It is what some people think should happen, but there is no reason to believe that it will happen. FHFA and Treasury each have their own reasons to not allow release before recap