Fannie Mae-No Politics (FNMA)

[philipmax]

I've been looking at the valuation for the combined F&F. As I read it, the annual profits are in the $11-15 Billion per annum (combined). With ~3B shares outstanding this means about $4.00/shr (yes, it's more or less. This is a hypothetical calculation). If we just give it an 8X multiple the common should trade at $32-36.

I don't expect Mnuchin to give the shareholders the full ownership of these entities since Treasury already has its tentacles firmly lodged in their jugular with the NSW. Therefore I'll adjust my expectations to a 50% haircut on the price. I also expect that these companies will have NO FEDERAL TAX payable for many years in order to compensate them for the years of unremitting Treasury withdrawals.

Holding and biting my nails.
PS Only an occasional poster here.