Replies to post #340886 on Fannie Mae-No Politics (FNMA)

[Latergater]

He did not. People are just assuming based off his original price estimate

[mike_usa]

Ackman didn't say 5x. Ackman said pps with warrants. AIG ruling is precedent. This is just IMHO. Not a recommendation to buy or sell. Thanks.

[mike_usa]

Please read carefully.

As per Bill Ackman: "The price range is $23 to $47 with warrants."

In the below news link it's said: "Fannie's stock is trading just above $4 per share. Ackman sees the stock price ranging from $23 to $47 in the future."

http://www.businessinsider.com/bill-ackman-fannie-mae-presentation-2014-5


http://im.ft-static.com/content/images/ebc3f688-d51b-11e3-adec-00144feabdc0.pdf

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As per my understanding: What does it mean ?? About 4.4 billion shares with warrants and about 1.1 billion shares outstanding. So total about 5.5 billion shares assuming warrants being executed.

That means I understand each share will be worth in between $23 to $47 assuming warrants are valid.


As per my understanding, from AIG ruling, warrants may not be valid.


Then I understand, If no warrants there are only about 1.1 billion shares outstanding. So my understanding is the price should be 5 times with out warrants. So $115 to $235.


From following this since 2008, reading almost all of the posts here and other news articles related to this, I got some understanding which may or may not be correct.

All my posts are just my opinions. Don't buy or sell based on my posts. Thanks.