Replies to post #370640 on Fannie Mae-No Politics (FNMA)

[RickNagra]

I think you are wrong. He does not mention the two levels of par for the preferred. I believe he means that commons are worth $25 with the warrants already paid. So I would assume if warrants are not exercised as most here believe will be the case then commons are really worth $25 x 5 = $125. Overall I do not understand this article at all.

I think he is referring to the two levels of par for the preferred. What I don't understand is why he says the warrants are already paid for. Comments on that?

[slacker01]

He is just another trash spewer. The warrants were not paid for since they were stolen. He is writing them off like they were collateral and the debt was paid. Until courts impose some kind of instructions after they deem the whole thing illegal that is, not a penny has been paid back and the warrants are on top of the divi and the loan payback. What the courts have to do is call this predetory lending and call it illegal. Then they can cancel the warrants, the loan, and the dividends (NWS). But until then they are still there and will stay there. If the courts don't correct this then there is no telling what will happen. The gov might stop NWS and allow them to build capital, they may keep, cancel, or may sell the warrants, they may require to still pay off loan. There are way to many possibilities.

[Donotunderstand]

written after I saw the response to you

I agree

the reference was to preferred stock at two PAR levels

author suggesting that the % increase from current to those values is beaten by the % increase he anticipates for common


I agree - the author dismisses the warrants with no explanation

To argue they are paid is a possible argument but one can better argue all the investment as held by the preferred stock has been paid back

The warrants are their own issue

all IMO