Fannie Mae-No Politics (FNMA)

[Rodney5]

What is your investment worth?

If and when the conservatorship ends the question, how much value will each equity holder receive price per share?

Depends on possible amount of dilution of the common stock either by warrants, IPO, RE IPO or Treasury cram down or a combination of the above.

What are the companies worth?

Fannie and Freddie calculated intrinsic earnings value are $240 billion and $139.9 billion, calculation is based on a multiple of a 12 year period of time.


Fannie Mae common stock outstanding 1,158,087,567 and if diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares… Treasury would hold 4,603,542,119 billion shares.

Freddie Mac common stock outstanding 650,059,553 if diluted by the warrants at 79.9 percent adds a total of 3,234,127,134 shares… Treasury would hold 2,584,067,580 billion shares.

Fannie Mae

JPS are due $19.1 billion (par value) and the common shares own the company.

Freddie Mac

JPS are due $14.1 billion (par value) and the common shares own the company.

Fannie Mae
EARNINGS POWER OF THE BUSINESS
$240 Billion Intrinsic Value

net earnings $5.0 billion per quarter, a projection of $20 billion net per year.

At 12 years x $20 billion = $240 billion / total outstanding shares fully diluted = price per share.

Freddie Mac
EARNINGS POWER OF THE BUSINESS
$139.9 Billion Intrinsic Value

net earnings $2.9 billion per quarter, a projection of $11.6 billion net per year.

At 12 years x $11.6 billion = 139.2 billion / total outstanding shares fully diluted = price per share.