Fannie Mae (FNMA)

[LuLeVan]

How much of a drop?

1. Best case: Drop to 99 cents, followed by a rise to $14 after recap/release (SPS written off, warrants exercised).

2. Worst case: Drop to 5 cents after an SPS-to-common conversion, followed by a rise to $25 (IPO/SPO price) after a 500:1 reverse split.

3. Ugliest case: "Eternal conservatorship", with shares held in limbo forever. Commons trade between 45 cents and $1.40 for the next 15 years. Most legacy shareholders will be dead by then. $1.40 in 2039 will be worth 50 cents in today's dollars (due to excessive national debt driving inflation).