Replies to post #363069 on Fannie Mae-No Politics (FNMA)

[mike_usa]

Just IMHO: So changed the argument ?? Zero value to commons till few days back to $3 now. Good progress. May be it may not take much time to change the tune from $3 to $30 ?? Who knows ?? As someone stated on this board long back that "For any reason this goes to $3, for the same reason it may go to $30 ?? "" ?? .

[FastEddie18585]

The market has determined that the commons are already worth more than $3.00.

[Mathan22]

Is your $3 prediction with the exercise of warrants accounting for any PE ratio?

[Donotunderstand]

so I understand you

the common shares are worth $15 until recapitalization can be effectualized

? recapitalization is effectualized? what do you mean? and what would that price be - the PPS of a fully recapitalized F with no warrants exercised - 5 years down the road with 50B in capital?

(and humor me - do you not think if the money was sent directly to Fannie that the GOV could sell its "shares" to the public at $25 ?

end result would be an immediately capitalized Fannie and a PPS of 25 dollars as our shares would be valued at same level as the newly issued shares

I suggest 25 dollars as that seemed to be around the numbers some hedge funds put out years ago

And if the market - with all the uncertainty - values a no warrant FNMA at 15 bucks - it should like a Fannie with 100B in capital surplus at least at 25