Fannie Mae-No Politics (FNMA)

[chessmaster315]

Do tell us, Glen Bradford, "what event" in the future can (preferreds) look forward in order to "reverse" the trend where commons outperformed preferreds for about the most recent 13 months?

Conversion to commons? Why would you want to convert to commons if you adamantly think the preferreds are an advantage?

(Disclosure: I have already converted all my preferreds into commons, by selling FNMAS and buying FNMA shares.)

More importantly, why would a judge order some "preferred-favorable" conversion? How can that be justified, when preferreds have an opportunity to convert to commons now?

Dilution? Are you fearful of buying commons because of "dilution"?
Buffet says buy when others are fearful, and be fearful while others are buying. The so called "dilution" theory makes no sense for at least 2 reasons:
1. FNMA does not need an IPO or more capital. Instead they need the government to stop robbing our profits in the present, and to return stolen funds from the past. Result: Recapitalization.
2. Even worse, how/why would a so called "new" investor buy into a company where the government bled the last investors "dry". There is no assurance this would not, likewise, be done to "new" investors, just like the old ones. For that reason, The lawsuits need to be settled before the GSE twins can raise capital from new investors. We arent going to "settle", until all the money stolen from us has been returned, plus a negotiable interest rate.