Replies to post #406068 on Fannie Mae-No Politics (FNMA)

[capitalismforever]

Why it is not going higher when entire market has jumped after election. That tells this is dead money unless dividend is given. Once the market crashs, GM will not survive.

Because it's a crap investment and always has been. There is very little profit in the auto manufacturing business. An industry I'd never invest in...Ever. and even then, they were still able to sell ever new share they issued into the market during the IPO.

[streamer04]

its dead money because everyone knows GM will likely go bankrupt or need another bailout in the future thanks to the greedy UAW.

[capitalismforever]

In case of GSEs, with 5X (80%) dilution, pps will be $20.

You can't logically value the company until all the knowns are known. What's recap going to be? Will they raise the equity for recap through common shares? Will they recap the company over time through retained earnings? Will the warrants be excercised? Will the government decide to change the entire structure of the business and operate them as a utility? There are 101 unknowns. It's IMPOSSIBLE to determine the value of the commons until they've all been answered. You're throwing darts with a blindfold on, I assure you.