Fannie Mae-No Politics (FNMA)

[blownaccount9]

Based on earnings. To use round and VERY conservative numbers
FNMA $10B/year earnings even though the last year or 2 closer to $20B. 1.2B shares. That means at at a 10 P/E company should be worth $100B which is a conservative P/E when SPY is at 23. This would gave a share price around $80.

Most people here are assuming there will be dilution upon release and are hoping it is simply the warrants exercised which would dilute by a factor of 5. Even so $100B/6 = $16 which is again VERY conservative.

I've been doing more research into other deals government did with Citi and AIG and yikes shareholders holding before TARP got wrecked on those. Did other banks make it out more unscathed? Citi and AIG are both sitting at about 10% of pre2007 highs. Looks like AIG forced conversion of preferred shareholders and diluted the hell out of their common stock? I think we are all hoping for a deal better than AIG's deal right?