Freddie Mac (FMCC)

[Latergater]

“At that point, the securities could be called and replaced with preferred shares that have a much lower coupon or possibly be convertible. If that happens, the value of the preferred shares will increase well before the dividend is paid. Bove expects a 100% price appreciation, and if they hold for three years, "well more than that."

On the other hand, he believes the common shares could be diluted by 90% to 100%. He also expects Fannie's and Freddie's earnings power to be "meaningfully compromised," resulting in a decline in the common shares' price.”

90-100% dilution. Ouchhhhhhhh