Replies to post #786879 on Fannie Mae-No Politics (FNMA)

[blownaccount9]

1. When did you pass the series 7?
2. None of that matters
3. Why is Freddie’s book growing faster than Fannies?
4. Fannie and Freddie do more or less everything the same.
5. None of this matters.
6. You seem to be confused. Spending hours driving around looking at new homes being built has nothing to do with either of the GSEs.

By every metric that is verifiable Freddie is the one accelerating whole Fannie is slowing down. I’ll go take some pictures of new houses going up around me to prove that in your fantasy world that I am correct.

[Wise Man]

FNMA posts 80% of the adjusted EPS in FMCC.
Also Freddie Mac always grows faster. For instance, the latest figure: annualized 2.5% volume growth qoq in Q4, versus 0% in Fannie Mae.
Top line growth plus margin improvements, drive the PE multiple.

Therefore, Freddie Mac deserves a higher PE multiple and it posts higher EPS. Multiply both to assess the target price and you'll see why $FMCC should trade always at a price at least 50% higher than $FNMA.
You don't even know that BoA doesn't sell mortgages to Fannie Mae.
You don't talk about the non-bank lenders that sell mortgages to Freddie Mac.
You attempt to justify the current share price and the fact that someone is accumulating the stock with greater upside, needing a lower price to get more stocks, in an attempt to offset the difficulties in accumulating stocks in a company with a light trading volume.

Do you happen to know Ackman's clerk, Glen Bradford?
Are you going to write a SA article with that muddy story of visiting construction sites in winter?