Replies to post #408198 on Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

It's going to be a sad day around here when the common stock it worth $0. Not saying that the preferred will be worth anything (although I am betting on it), but you have to be a silly monkey's uncle at this point to think that existing common shareholders are going to see 10X+ returns from these levels.

I still own 10% of my Fannie and Freddie portfolio in common shares but only to protect myself against the regret of missing a miracle.

[Zeroze2002]

Yeah if your investment horizon is 2 days you will be in great shape with commons!! LoL . Why don't you make the comparison for 3, 6 and 12 months and see what you find

[tcj]

When they call the prfd's at par, liquidate the existing entities and transfer assets to a new entity for a new IPO, I wonder if you'll still be on the board? My guess is no.

[capitalismforever]

Actually, that's telling you that smart money is the first to know and it takes dumb money (commons) a little longer to figure things out, which is why when the court ruling in Perry happened, preferreds fell 25% and recovered quickly the same day while commons fell close to 40% and took weeks to gain a few points.