***Action Alert*** (NOT ANY POLITICAL STATEMENT)
One year ago FNMA common shares traded @ >$3.50 in an active range of 4 M shares, daily. In the covid virus meltdown period, FEB through April, nearly all equities took a haircut but, since, excluding hospitality, transport and energy stocks, most have recovered substantially. Not us. Our shareprice and daily volume continue to dwindle. The lack of recovery derives from FHFA's inability to deliver any substantive certainty of any benefit for existing common shareholders. The high capital rule has been heavily contributory to concern over future prospects.
Here's the issue and opportunity, as I have privately shared with a few of you via e-mails and phone conversations. The "noise" coming from Odeon Capital and ACG Analytics is a distraction from reality. Here's the TRUTH. On whatever date the election results are certified and IF Biden wins, the trigger point is whether or not a Consent Agreement is in place for assurance of at least an eventual reprivatization. If no agreement is in place but Trump wins, no problem. But, if not, I believe this will set off a Tsunami of tax-loss-selling that could eclipse the $.99 common lows in 2018. That price could look like a mountaintop view. I see two bit commons as highly possible in such an occurrence.
Nobody panic. Nobody dump shares. But I encourage preparation via dry powder to exploit this possibility, if you are a keeper of the dream and have the guts and appetite for risk to take the reigns and await a Supreme Court "win" announced in the Spring.
I have planned for this for 6 months, I am prepared to buy 500,000 shares (or more) depending on the next 30 days. And, no, I am not worried about enough shares being available. During the MAR/APR meltdown this year, we averaged 12-14 M shares, daily. There will be plenty to go around.
Good luck, investors. Again, I am making no political statement regarding the election... only the importance of certain, possible events as they pertain to the outcome for this common stock. No recommendation for any buy, sell or hold action. Consult a trained advisor for such advice.
