$FNMA earnings were over $12.50 per share 2019 so with PE ratio between 10 and 30 that's $125.00 to $375.00 per share like Apple only we're bigger and sell Real Estate Loans while Apple sells electronic junk yah throw away. Who really needs them?
Would agree if no dilution coming. I think this is where some of the folks like Nomura and ACG are getting the about $5-7 a share from. Logic says take the earnings and work backwords. If commons end up with about 5% of the GSEs that's .625. Nomura estimates 2/3s paid out as dividends.
That was before the current crisis. That being said, I think its not a bad deal to get $7 shares for $1.60 and $1.75 with the potential to go anywhere between $7 and about $250.
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