Fannie Mae-No Politics (FNMA)

[Louie_Louie]

I'd love to see actual proof of all hedge funds and institutions that are in all the classes of JPS, what their share count is to date...better yet, their cost basis also.. I don't think after 15 years , that there are all that many left, there's only like three key hedge funds that are even mentioned anymore. If a JPS buyout were to happen, I'd give it a 50/50 chance of a conversion to common shares, possibly far less than 50, maybe 20/80. Why? Government will not want to enrich those who have been a thorn in their rear with court cases for 15 years. I imagine it would be a cash offer, most likely, , possibly prior to release. FHFA and the companies can say it is a strengthening of the companies balance sheets prior to release, and they could even say that government mandates that they be the only pref holder due to the back stop of treasury. Therein maybe freeing the warrants (bye, bye) and reducing the seniors the government owns.

If they (government/FHFA/GSE's) did a cash buyout and timed payout for after release, the JPS would be dead in the water trying to get rich on cheap shares. There's so many ways you can play this game when you own all three players and make all the rules!

Timing will be everything when the first ball drops. I like being positioned in both common and JPS, but at lowest price possible. So those getting their cost basis down, no matter C or JPS, are doing the best thing.
JMHO