Fannie Mae-No Politics (FNMA)

[VETERANTRADER]

FNMA could be valued at $61.85 (even-with-government-control)

Profits:
Q4 2012 = $7,570,000,000
Q1 2013 = $8,100,000,000
Q2 2013 = $10,100,000,000

Q3 2013 = $12,000,000,000*estimate


4Q Total: $37,770,000,000* (including Q3 estimate)

Divided by Shares outstanding 1,160,000,000

Multiplied by (average) 9.5 PE ratio

FNMA Valuation: $309.32


Divided by 5 (government owned 79.9% of commons) = $61.85 per share

Why would the government eliminate FNMA and lose out on 4,640,000,000 (conversion of warrants)
Those shares could be worth $287,000,000,000 (Then add FMCC.... WHOAAAA)

Cheers,
vt.