Replies to post #529899 on Fannie Mae-No Politics (FNMA)

[navycmdr]

Dow - 313 mkt overall mkt OVER REACTING as it DOES EVERYDAY !

excellent GSE post - Common sense - which isn't Common ... :-) :-) :-)

simply wait for the mkt to finish OVER REACTING - TRADE accordingly !

Good TRADing to ALL !!!

[Donotunderstand]

interesting way to think of it

but

what about the need for capital and likely SPO

[Guido2]

Minor correction:

FnF consistently earn over $20 billion annually, after taxes.

Combined outstanding shares rounded is 2 billion.

[5bagger]

Warrants changes Philipmax but pretty close

Phililmax says:
I've been looking at the valuation for the combined F&F. As I read it, the annual profits are in the $11-15 Billion per annum (combined). With ~3B shares outstanding this means about $4.00/shr (yes, it's more or less. This is a hypothetical calculation). If we just give it an 8X multiple the common should trade at $32-36.

12B income divide by 3B shares = $4.00 EPS x 8 = $32/share

Per Moelis and Don Layton:
20B income divide by 15B shares = $1.33 EPS x 8 = $10.64/share

Moelis uses 10x for $13.30 / share.