Replies to post #777734 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Convert your FNMAS now at the generous Exchange Rate of 2.77 Common!

Judging by historical standards, as shown in this 5-year chart of FNMAS:FNMA, 2.77:1 is a pretty poor ratio at which to sell FNMAS and buy FNMA.

If this ratio reverts to the mean (and it shows mean-reverting behavior), it should go back to 3.5:1 at some point.

That means the current ratio is indeed generous, but only if you're selling FNMA to buy FNMAS.

GET SOME LIQUIDITY MAN!

FNMA and FNMAS have similar liquidity in terms of dollars. Don't use daily share volume to compare liquidity.