Fannie Mae-No Politics (FNMA)

[kthomp19]

First move will be to $4
Then $6
Then $8

A series of three capital raises, conducted at $4/$6/$8 respectively, is perfectly plausible.

If there are multiple capital raises, the first one will be at a lower price than if there was just one because the participants in the first of a series of raises are taking more risks (namely that the rest of the raises might be more dilutive than anticipated or not even happen at all). So my calculation of an all-at-once capital raise leading to a price of $5-8 makes the first in a series being conducted at $4 quite plausible indeed.