Replies to post #538475 on Fannie Mae-No Politics (FNMA)

[bcde]

"Even if you exercise the warrants pre offering, the stock is highly unlikely to be even 8. "

JosephS,

The price of CS and JPS depend any variations to below must conditions.

There is only one sure way, FnF can survive and both CS and JPS can get back their invested money. The following conditions are must for this.

1. Reverse NWS
2. Set SPS liquidation preference value to 0 as fully paid
3. Let FnF buyback warrants at current UST valuations (<$10B)
4. Sufficient Gov credit line during recap
5. Try recap only after ending conservatorship

Any other variation will add risks and uncertainties and may put FnF under permanent conservatorship.