Fannie Mae-No Politics (FNMA)

[Betterusa]

6. Why sucking Alpha is wrong: Washington had the option to buy common share at around $12, but because FNM share went down to so low that Washington did not exercise that option. If FNM recovers fast enough beyond $12, there is no much chance for any dilution. So far, common share has not been diluted. Sucking Alpha can be sued for this wrong information. If FNM recovers to $250, payback to Washington will not need many new shares.

Seeking Alpha said:
6) Since 2008, Fannie and Freddie have seen major share dilution.

Some investors might look at the price and conclude that there is a lot of upside. They see that the prices were in $60s in 2007 and only $3 now. What they do not account for is the massive increase in share count for Freddie and Fannie after the bailout.