Replies to post #767479 on Fannie Mae-No Politics (FNMA)

[Golfbum22]

You lost me at what if

He is always wrong

Lol

[Brooge warrants cancelled]

with his record I'll bet on
he's WRONG

[kthomp19]

What if YOU are wrong about SPSPA conversion.

This is an asymmetric situation.

If Glen is right about a senior-to-common conversion, the existing common are worth maybe 25 cents at the most while the juniors are worth at least 50% of stated value.

If Glen is wrong, the existing common will be worth more than 25 cents but the juniors are worth 100% of stated value.

Either way, if the commons win then Glen wins. The ones that bear the true consequence of being wrong about the likelihood of a senior-to-common conversion are the existing common shareholders.

See how that works?

I don't think you do.