Replies to post #704073 on Fannie Mae-No Politics (FNMA)

[Patswil]

ULTIMATUM:
@SEC_Enforcement
/
@TheJusticeDept
TO SURRENDER
The plaintiffs collude with the institutions that have enforcement action (Agencies/Judiciary) to undermine the Flag of United StatesCode and basic Finance.
4 Securities Fraud violations.Secret Plan under Law.

[kthomp19]

So what would you put the share price at post conservatorship with warrants excised assuming the seniors are considered paid and they have met the capital requirements? ..Ballpark

That depends on how much capital FnF have to raise and how many common shares (what overall percentage of the common equity) they will have to issue to get there. It also depends on the estimated market cap for FnF commons; the amount of capital needed divided by this market cap sets the floor for what the new investors will demand in return for their money.

If the capital requirement stays where Sandra Thompson set it, FnF would be around $146B short of it were the seniors to be cancelled right now. $67B of post-senior-cancellation core capital compared with a capital standard of 3% of $7.1T in balance sheet assets.

This framework post of mine outlines how to calculate a post-recap/release common share price from various estimates and assumptions. I got a range of $0.69-$8.07 with a weighted average of $4.65 back then, and that was only assuming a $100B capital raise.

[bradford86]

5-8 to raise capital. Then maybe 50-100% upside in 5 years