Replies to post #638845 on Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Most thought FNMA would be above $10 post-PSPA Amendment.

Now we're sub-$2. So maybe FNMA gets above $3 post PSPA Amendment?

Even if it does, it'll be a Sell the Pop moment because no on can value Commons until we know the outstanding share count.

[kthomp19]

But I still don't see the problem, since this will be above $4 post PSPA amendment.

Many institutional investors cannot own shares priced under $5, and of those, few if any would be comfortable owning shares priced under $10 because as soon as the price hits $4.99 they are forced to liquidate.

There is also a stigma against low stock prices, whether it's deserved or not. I think these investors will actually want a share price of at least $30. A reverse split is the only realistic way to make that happen.

[skeptic7]

$4 is MILES away from this stock in the foreseeable future