Fannie Mae-No Politics (FNMA)

[Rodney5]

Viking61 Said Quote: “ If the warrants happen to ever be exercised, the price will be the average price over multiple trading periods. That is why I believe in this scenario that the government will cancel the Seniors and the LP to give the warrants a higher potential worth. Not that I want the warrants to be exercised but to increase their value” End of Quote

The strike price of the warrants if exercised has absolutely nothing to do with the value of Fannie Mae’s business. It doesn’t matter if the warrants are exercised at 0.60 cents or 200 dollars. If the warrants are exercised it will give the Treasury 79.9 percent ownership of the common stock which will give the Treasury 79.9 percent ownership of the earnings power of the business. THAT’S IT.

EARNINGS POWER OF THE BUSINESS
CALCULATED VALUE $240 billon

latest earnings report

Fannie Mae
June 30, 2023

Fannie Mae Reports Net Income of $5.0 Billion for Second Quarter 2023 projection of $20 billion net per year. A multiple of 12 is not unreasonable

Price to Earnings Ratio of 12 x $20 billion = $240 billion Intrinsic Value of the Earnings Power of the business.

With the WARRANTS: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares outstanding…