Fannie Mae-No Politics (FNMA)

[Nelson478]

Here is some perspective. Microsoft ( MSFT) trades on NASDAQ at $126.90/share. Last year it had $110 billion in revenue and $16.5 billion in net income. It has 7.8 billion shares outstanding with a market cap of $972 billion. Fannie Mae + Freddie Mac last year had $43 billion in combined revenue and $25.1 billion in net income. FMCC has 650 million shares outstanding and FNMA has 1.5 billion. Combined their market cap is around $28 billion. If the warrants were exercised and preferred shares converted to commons and the common shares were diluted to about 9 billion shares and the price per share dropped from $3.00 to $0.60, let me ask you this: If you were an investment bank and saw a company properly released from conservatorship, properly regulated, and on sound financial footing with the revenue and margins of Fannie and Freddie and trading for under a $1, would that be a buy opportunity or not? This stock should be trading at over $100 per share. If you're hoping for at least $10 a share, that is beyond conservatively reasonable in my opinion.