Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

I agree on the warrants but the question is how? ACG believes they will stay in place, I believe amended terms benefiting FnF, and then they will eventually be exercised.

Ackman has said it incentivizes the Gov to raise the price and ACG is stating the same. ACG says the warrants would go to the Biden administration.

Just repeating what Ackman said in the cap rule commentary (can be found near the end of “his” commentary). See Gaby recent interview and David Metzner tweet.

I don’t think the warrants are that big enough of a deal considering I’m expecting some dilution, but still an eventual shareprice over the next 3 to 5 years of $30 to $60 per share. If you expect warrants to be cancelled and retained earnings only, then $200 per share estimates are in play in 3 to 6 years.

I’m putting out various scenarios.

Interesting times ...