Replies to post #623337 on Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Owning the Fulcrum is of utmost importance during a Restructuring.

Jr. Preferreds are the GSE Fulcrum.

FNMA Commons are likely the sacrificial lamb.

Ackman saw this coming over a year ago and hedged his bet on Commons. I'm curious if he's added more to his Fulcrum position.

[imtheshadow]

the big question is how much of the warrant and cap raise dilution is ALREADY built into the price ... no one actually knows ... but given what may be an impossibly long and expensive pathway to void the warrants ... and the assumption that some amount of cap raise is unavoidable ... it is at least reasonable to think that most of those two events are factored in ... if so, two main things are left ... retire the NWS/return the over payment ... and release/relist ... and I think those are worth a lot more than $1-$2 per share ...