Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

That's right Chess, preferred stock investors generally tend to be more conservative in their investing risk tolerance level than common stock investors and that's why they consistently use "watch out for bankruptcy", "the immediate and imminent dilution solution", and "we will win on retro divies at the CFC" to try to appeal to the limited group of investors that congregate here and elsewhere. Some serious questions for jps:

(1) When will the dividend stream be turned back on?
(2) Will they get 50%, 60%, 70%, 80%, 90%, 100%, 110% of par?
(3) Will a company that is starved for capital from a depletion of capital by their "conservator" be able to redeem the preferred?
(4) Will the CFC cases pan out?
(5) How many years will I have to wait for my zero coupon bond to mature and at what par level?
(6) If the nws ends and the LP goes to zero, will the companies recap organically through retained earnings or will it be through a combination of re and more common stock issuance?
(7) What present and future litigation will impact all of the above?

No question BOTH Common and JPS are selling for fire sale prices, but I prefer owning competitive well run low risk moat protected corporations to just holding a glorified zero coupon bond with an unknown maturity and future dividend stream.