Fannie Mae-No Politics (FNMA)

[habib7]

I don't understand all the hate/attacks on this board. You want just rah-rah cheerleaders? Or should you balance all perspectives?

Back of napkin FNMA valuation for me...
15B net income x 10x multiple = 150B market cap
150B / 1.15b outstanding shares = $125.5 per share

With warrant conversion:
150B / 5.76b shares = 26.05 per share (12x multiple gets us to $31pps)

If JPS are converted to common, that adds ~$760m shares (depending on conversion terms+new JPS if need capital raise)... stock still $18-23. Lots of upside on common in any of above.

If SP/LP aren't written off, that's game over... >$2 pps.

I'm in common for the net worth increase, JPS as a safety net for worst case scenarios and for the potential dividends. Max dividend FNMA ever paid was 2.93%... share price would need to be $69 to equal the FNMAS dividend.