Degrees Ackman
There's Fahrenheit, Celsius, and now Ackman. For Fannie, 1 degree Ackman (1° A) = $2.29.
"He first got involved in Fannie and Freddie in 2013. That November, Pershing Square disclosed that it held 115,569,796 shares of Fannie and 63,505,693 shares of Freddie. Pershing Square began building its positions in October 2013 with an average cost of $2.29 for Fannie Mae and $2.14 for Freddie Mac."
How do we scientifically calculate a degree Ackman?
As stated in my previous post, there should be about $10 a share available to common shareholders if they end up with 100% of the company (works for me - but probably not - even the Great Ackman says 20%). Tomorrow Ackman will explain why we may end up with $31-$34. But he is being conservative. Based on the Ackman scale, 20 degrees Ackman would be $40-$50. For each 1 percent of the company the commons end up with, the commons would get a 10 cent dividend. Based on a 4-5 percent dividend rate this would justify a share price of between $2-$2.50 share price for each percent of ownership. So assigning a value or $2.29 per degree on the Ackman scale makes sense to me. So, this morning, at $7.04 we are over 3° A - and rising. Its getting hot in here. That being said - could someone please throw a few more logs on the fire?
Nats
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