Fannie Mae-No Politics (FNMA)

[bradford86]

E.g. 9X multiple:
10,000 JPS x 18.2 (JPS shares per $25) = 182,000 common shares x $3 = $546K

hmm. at 9x the shares are worth $1.37 so 18.2 shares x $1.37 = $25/share par value; $250,000 is where that comes out at restructuring

vs.12X multiple:
10,000 JPS x 2.7 (JPS shares per $25) = 27,000 common shares x $18 = $486K

at 12x, $9.26 x 2.7 shares = $25/share par value; $250,000 is where that comes out at restructuring

preferreds get par at any valuation that exceeds 9x in this model; but long run; converting at a lower multiple does benefit the preferreds more than converting at a higher multiple; for example; do you think preferreds would be willing to convert at a 20x multiple? I don't. But that's like, my opinion, man. at 20x earnings conversion; my expectation would be that the price would not be able to sustain that; but who knows; the market is crazy with passive flows that in my view are going to have to buy this anyway; but i dont think that impacts conversion price.

i'm assuming spspa and jps convert to common and the warrants are exercised before hand; at like 8-11x valuation;