Fannie Mae-No Politics (FNMA)

[Stockman1010101]

For the folks who don't believe preferds (FNMAS,FMCKJ) are better than
(FNMA, FMCC) common. This article has been in the press this week:

Quote:
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Fannie, Freddie overhaul could mean windfall for preferred stock, analyst says

Published: July 14, 2019 9:31 a.m. ET


Quote:
Since the two companies will be issuing more stock, and converting the status of junior preferred shares to common, that will “dilute” the value of the common shares outstanding, by 30-35% or more, Groshans wrote.

For that reason, he’s initiating coverage with a buy rating on the preferred shares and a sell rating on the common. Freddie and Fannie’s common shares have already surged 155% and 166%, respectively, since the start of the year on speculation about the end of the conservatorship.

Link to article:
https://www.marketwatch.com/story/fannie-freddie-overhaul-could-mean-windfall-for-preferred-stock-analyst-says-2019-07-12?siteid=yhoof2&yptr=yahoo