Fannie Mae-No Politics (FNMA)

[JosephS]

You are not taking the warrants into account. If common is worth the penny as we all say, preferred are par. Why would the common trade at a 4x premium to the preferred. With warrants, the common mkt cap is 10 billion while the preferred mkt cap is 2.5 billion.

Which one expands faster in a reorganization scenario? I don’t know. It all depends on the details of the share count. That’s why it is a poor gamble in my view. You are vastly overpaying for it without knowledge of future decisions. Decisions unlikely to be impacted by the law.

Your coins in a glass jar analogy reminded me to go check one of my brokerage accounts and I decided to go ahead and convert some loose change to shares. Although I am quite sure that we will continue our downward descent, the idea that 100% of the existing commons outstanding are "on sale by Mr. Market" for $2.5B in total seems compelling given that it represents about 45 days combined retained earnings. Likewise at approximately 7.5% of par, the outstanding jps are priced at around $2.5B.

Not a recco