Freddie Mac-No Politics (FMCC)

[naveedkhan]

When i get frustrated waiting for this situation to be resolved in the joke of a legal system we now have I do this:

- look at the valuations of a few big banks, some regional banks and some insurance companies.
- i then compare what FNMA would be worth when released from consv. given those companies valuations (holy crap!)
- To tamper my enthusiasm, i think, OK there is downside risk. Let's say the gov. does get to keep 80% (still a good value at 20%)
- Then i think maybe they do need to raise some capital, so i look at ranges of how much dilution this may mean (I can still live with those values too)

At the end of this exercise, I'm still frustrated but do feel better about this stock.