Replies to post #684428 on Fannie Mae-No Politics (FNMA)

[RickNagra]

Now that’s a wow post. Congratulations.

[Chronic The Hemp Hog]

I agree and totally understand where you are coming from. I think what may be possible and different this time around is if the increase if the liquidation preference is also invalidated then you can directly tie the GSEs value to the shareholders.
Right now we have trillion dollar businesses where shareholders own 0% of the company and the value of the shares trade solely speculation. Once you eliminate the NWS and any liquidation preference of the SPS the value of the companies can then be allocated to the stockholders. Maybe not 100% maybe like 20.1% (because the government still holds the other 79.9%) but at least a valuation can start being attributed based on fundamentals (like assets, profit and revenue) at discounted value.

[Guido2]

Great post Lajrchamp! Puts the the current price doldrums in the right perspective.

[kthomp19]

Why aren't we at $3 right now, when the decision is likely either tomorrow or Friday? Each time this stock has risen, the ceiling has gotten lower because the result has been the same.

The key to seeing the huge numbers we've all been waiting for is getting the twins out of conservatorship and re-listed, which this administration and this Congress have shown zero interest in doing. It's all on the courts to force their hands. Come on SCOTUS. GLTA.

There are two considerations here: the price upon release of the Supreme Court's Collins opinion, and the price when FnF are released (most likely alongside a capital raise, in which case the common price will reset to the capital raise offering price).

Which of the two matters more depends on your investment horizon. If you plan to hold all the way until release, the size of the pop after the Collins ruling actually shouldn't matter much. And if you plan to sell into that pop, the later price is irrelevant.