Fannie Mae-No Politics (FNMA)

[blownaccount9]

Something I thought of the other day was how cool it would be if they decided to settle and instead of paying out cash which they are holding for us they instead choose to pay us out at x1.05 of our entitled damages in common shares at a rate that is calculated at 0.95 of weighted average share price over the last year or perhaps even over the previous month or even weighted average since 8-0 jury decision. I’d rather they keep the cash and just pump out a few extra shares that won’t dilute much in the long run. Navy’s 600,000 FMCC for example gets $30,000 based on 5 cents a share (won’t even try to calculate the interest for the sake of ease) gets $30,000 cash. Multiply by 1.05 and he’d get $31,500. Anchored VWAP is $7.50 so x0.95 would be $7.13. $31,500 divided by 7.13 would be 4,417 common shares in damages worth $38,833 without doing any interest calculation. Even if they skip the 0.95x multiplier it would be 4,200 shares which is really nice.