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FNMA~ Undervalued Mortgage Giant~ DD MUST READ

1) FNMA last year within 9 months posted 9.7 BILLION DOLLARS net profit.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=85192759

2) The company said it will post SIGNIFICANT PROFIT at Q4 (Expecting Q$ numbers out very soon maybe this coming days)

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9161349

3) The company made agreement with Bank of America in January 2013. Bank of America will pay to FNMA 3.6 billion dollars plus to buy back 7.6 billion dollars bad loans that they sold to FNMA. It means 11.6 billion dollars another advantage FNMA got. I mean first quarter of 2013 we will see huge profit as well.

Bank of America agreement link
http://online.wsj.com/article/SB10001424127887324391104578227292446942824.html

4) There are 16 Banks have to get agreement with FNMA to get back bad loans that they sold FNMA. I believe some of them will pay this year to FNMA. All 16 banks paid to FNMA it is bad loans portfolio pretty much will be cleaned out.

5) Home prices increases that is another good sign FNMA will post big profits in 2013.

http://ih.advfn.com/p.php?pid=nmona&article=56608671

6) The government controls 80% of FNMA by owning 80% of preferred shares.
what is gonna happen?
The Governments preferred shares will be converted to Common shares and The government will sell those shares and taxpayers money will be paid off. Like US government dis on AIG, BAC, CITI.
Probably those common shares will be purchased by FNMA.

7) ONE OF THE MOST IMPORTANT THING FNMA has 61.1 BILLION DOLLARS deferred in come tax asset.

SEC filing for Deferred income tax
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9161349

SO pretty much the money is ready to pay back like WSJ articles said.

Link for Wall Street Journal Article
http://online.wsj.com/article/SB10001424127887323639604578368443773821834.html

8) The list of Hedge funds holding FNMA shares

Top Fund Holders
Holder Shares % Out Value* Reported
Capital Income Builder, Inc. 12,458,206 1.08 3,239,133 Dec 31, 2012

Franklin Custodian Funds-Income Fund 5,889,149 0.51 1,648,961 Sep 30, 2012
Franklin Templeton VIP-Franklin Income Securities 1,674,119 0.14 468,753 Sep 30, 2012
Lord Abbett Bond-Debenture Fund 818,000 0.07 229,040 Sep 30, 2012
EQ Advisors Trust-EQ/Franklin Core Balanced Portfolio 344,367 0.03 96,422 Sep 30, 2012
MET Investors Ser Tr-Lord Abbett Bond Debenture Portfolio 227,275 0.02 63,637 Sep 30, 2012
Advanced Series Tr-AST/Franklin Templeton Founding Fds Alloc 253,900 0.02 71,092 Sep 30, 2012
JNL Series Trust-JNL/Franklin Templeton Income Fund 165,000 0.01 46,200 Sep 30, 2012
John Hancock Var Ins Tr-Income Tr 103,273 0.01 28,916 Sep 30, 2012
SBL Fund 'Z' Series (Alpha Opportunity) 78,409 0.01 20,386 Dec 31, 2012

http://finance.yahoo.com/q/mh?s=FNMA+Major+Holders

9) FNMA CEO is Top Lawyer and Former BAC Counsel

http://www.nytimes.com/2012/06/06/business/fannie-mae-names-new-chief.html?_r=0

10) For those reasons above FNMA common shareholders will make significant profit in coming days, weeks, months and years. Remember SIRI was 8 cent rocked to over 4 dollars.


My Target within 3 years 100 DOLLARS per share IMHO.
Also last 6 day trading days volume shows big money started to pick up FNMA.
FNMA holds 3.2 TRILLION DOLLARS Asset. The biggest company in the world.

This is my opinion read, check and make your own decision.

~Blue~