Fannie Mae-No Politics (FNMA)

[armstka]

Doing a little research on this by looking at pre-crash data.

In the 2002/2003 timeframe, Fannie Mae had approx 1 billion outstanding shares. Their 2002 annual report claims $4.6 billion in net income. Using your P/E of 17, $4.6b / 1b = 4.6 x PE of 17 = PPS of 78.2. Well, in January of 2003, FNMA was trading in the mid $60's, and made its way to about $80 per share that year. So, that is on point.

Obviously history is no indication of future events, but...I see no reason the formula shouldn't apply once released from conservatorship and all the dust settles. It is, after all, a basic formula used by millions for years.

My target all along has been $80 per share. BUT, after looking back at the 2002/2003 numbers, perhaps my target should be more along the lines of $150 per share. Who knows. Maybe that is a pipe dream. Or....maybe not.

Just felt like sharing ;)