Fannie Mae-No Politics (FNMA)

[JosephS]

No guarantees but the typical multiple has been 2x-6x. Anything below 2 is super cheap, anything above 6 is quite expensive. It obviously got to 1.5 or so.

So with FMCKJ at 2.15 and FNMA @ 94 cents, it’s definitely at the low end of the range. When it gets to 4/5x, go ahead and trim if you are so convinced that common is 100x in your model. (Not you specifically, Stockman)

It’s a great metric to watch for those able to use logic and their heads over emotion. Emotions affect investing. It’s the biggest game played. The one with ourselves.

Enjoy the journey while because the destination is cool but it’s sometimes over rated.