Replies to post #707004 on Fannie Mae-No Politics (FNMA)

[familymang]

Ya obviously the government is going to 1) cancel their ~$100b worth of warrants for 80% of the companies, 2) write down the $250b senior pfd liquidation preference to zero, and 3) payback the companies $100b+ of cash profits that they made on them since the ILLEGAL conservatorship began to immediately meet the new capital requirements and wont have to raise outside capital.

In this scenario the common shares of Fannie alone would be worth ~$325/shr overnight
([$15b annualized net income x 25x P/E] / 1.158b current shares outstanding). How can no one see such an obvious ~325x bagger right in front of their eyes when its obviously what's going to happen here!? The market sure is silly luckily we can buy all the shares for ourselves to retire off overnight. /S

[Donotunderstand]

why?

if the SPS is killed the monster over our heads (200B or whatever - gone)

Dilution to a total of 5B shares is a pimple compared to bradford getting to what - 1,000 Billlion then reverse split by 200

Now dived our 20% by 200 and you see what is really dangerous