Replies to post #606528 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

ok

may or may not convert

commons have the potential to make a ton of money but also could be diluted and diluted

so you own PFD

I own both for same reasons - but I focus on the upside potential of common in many scenarios without conversion

so I am 50-50

note - I still do not buy that the new equity has as much power as you suggest

[FOFreddie]

Hi Kthomp

Your $ 8 estimate is the most reasonable and is consistent with some of the valuations that Nomura and AGC has suggested. As you mentioned in the past AGC has an estimate of $ 6- $14.

These type of baseline valuations would indicate why first mover institutions like The Growth Fund of American and Fidelity Asset Management added common shares in Q1 2020.

Your JPS holdings will do well also but it is clear that major insitutions own both common and JPS and have added to common in Q1 2020. If they did not have confidence in common valuations they would not have added or they would have reduced.