Fannie Mae-No Politics (FNMA)

[bradford86]

tim howard suggests that if the spspa conversion obliterates common then it impedes their ability to raise capital.

i'm not sure if that is true or not, but in case it is, i'm revising my potential upside estimate for common to $2-3.

note that spspa conversion on a price basis could put them at $0.10 or less so there is no security there.. not sure why anyone would own them unless they are financially illiterate is basically what i'm saying...

most people just look at P/E which is fine and dandy but place in capital structure matters during restructurings, which is what this is.. an equity restructuring.