YankGhost, I certainly agree. There is no secret Goldilocks shareholder payday plan as some have theorized. Certainly there is orchestration efforts to benefit some of the big firms on Wall Street who want new equity opportunity but its also tied to the political reality of the mortgage market and by its very nature must be balanced and appropriately structured to get off the ground. We're dealing with the machinations of Wall Street and Government Bureaucracy.
To be clear, UST is not keeping billions in a magical escrow account that they plan to surprise reveal and gift back to shareholders. They aren't going to repay anything like some have suggested (e.g. $100 billion). What will happen is the NWS will end, risk capital will be raised over several years, the GSEs will be reformed with some form of explicit government guarantee that is paid for by the GSEs on an ongoing basis. We may see Fannie and Freddie Merge. The 30 year mortgage will be preserved. There may be a new capital raise and some conversion of JPS and commons into a new equity format. There will likely be dilution but dilution that is worth holding through.
However, even if this plan takes a few years to implement, what is exciting is the street will price it into the shares immediately when confidence in the execution of that plan is established. These shares will likely be worth between $12 and maybe up to $25. Potentially in 7 years you will start to see them go north of $40. However, for those who bought in when they were under $1 per share (or even today), you should be very happy with a share price anything north of $10. This is also a great opportunity if they resume dividend yield. How often in the history of the market can you acquire 5%+ coupons for under $10 per share? Amazing really. The investment may just be to hold these and soak up the dividends each year.
For anyone reading this, it is also important to keep in mind there are other tremendous opportunities out there beyond Fannie and Freddie. It is important to maintain a balanced portfolio. Don't put all your eggs in one basket. Don't focus on being right, focus on becoming wealthy.
As an example, we just finished accumulation of another investment. There is a pharma company called Ritter Pharmaceuticals. It currently is $1.04 per share and obtained permission to continue trading on the NASDAQ. They are a low float stock with under 10 million shares outstanding. Because they are a low float stock, they can experience extremely volatile changes in share price due to such few shares outstanding. They recently completed an FDA-approved Phase 3 trial and are going to do the data read out by end of year. We have been slowly accumulating these shares over the last 8 months. By end of the year they will likely announce the first FDA-approved highly effective treatment for Lactose Intolerance. Their symbol is RTTR. We are expecting these to go north of $10 per share by 2Q2020. I am not trying to pump or promote this investment. It is highly risky. I am simply trying to show you there are other options out there as well.
We have sizable positions in Fannie and Freddie (50% common / 50% preferred), RTTR, and a few others we're not disclosing at this time as we're just starting accumulation. These make up the majority of the "risk on" positions on our sheets.
I know some people have been holding GSE shares for many years. If you are patient for just a little while longer, there is a high probability you will end up happy with the outcome. I recommend many of you go live your life and not worry or fret about this on a daily basis.
If you are going to invest mental energy, invest it in repeatedly contacting your elected officials, journalists, attorneys, and drumming up social awareness. That is far more powerful than you realize. People in Washington often want to stay in Washington. We've seen time and time again where they must betray their special interests to ensure they get re-elected. The GSEs are a political "investment" so you need to engage in the politics to move the needle.
News 
Market Data 
Discover 
AI
