Replies to post #797400 on Fannie Mae-No Politics (FNMA)

[Wise Man]

The rogue Mr. Pro Se at it again.
Didn't you read the attorney Hamish Hume challenging the ongoing NWS 2.0 (SPS LP increased for free in the same amount as the NW increase in the quarter. The same Common Equity Sweep as before: NWS dividend -Changes in Equity-)?

FnF start building their Net Worth, while also providing that 100% of that Net Worth would be owned solely by Treasury.

Currently concealed in the Balance Sheets, so he was talking about the Adjusted Balance Sheets that I post regularly:


Both, capital distributions restricted. The assessments sent to UST are applied towards the exceptions:
-Reduction of SPS: U. S. Code 4614(e).
-Recapitalization: CFR1237.12.

Although, he mentioned it in the Wazee I case in the Court of Federal Claims before judge Sweeney.
He relinquised the scheduled appeal two days after the voluntary dismissal.
Then, the attorney David Thompson seized control of Wazee II in a District Court of Pennsylvania with an abrupt appearance, in order to make sure Hume doesn't challenge the ongoing NWS 2.0 in the scheduled amended complaint of July 1st.
It would be nice if Hume sends us a proof of life.

[JOoa0ky]

The rule of absolute priority.

https://www.investopedia.com/terms/a/absolutepriority.asp#:~:text=Absolute%20priority%2C%20also%20known%20as,be%20made%20to%20each%20participant.

[Rodney5]

Quote: “ what common share price do you believe is eventually conceivable with their release?” End of Quote

What you are asking for is the calculated value of the common stock if and when Fannie Mae is released out of prison. There are three types of Equity in play here, Senior Preferred Stock, Junior Preferred Stock and Common Stock. The fight is and always has been how much equity will each class of stock receive. That’s the million dollar question. It is not hard at all to calculate the Intrinsic Value of the Business. The unknown how much of that value will you receive.

EARNINGS POWER OF THE BUSINESSES:

The Value calculation should start with the number $436.1 billion. This is the Intrinsic Value of both companies businesses including the JPS, the estimated value of Fannie and Freddie.

$402.9 billion earnings power plus $33.2 billion JPS = $436.1 billion.

Fannie Mae
EARNINGS POWER OF THE BUSINESS
$263 Billion Intrinsic Value

Freddie Mac
EARNINGS POWER OF THE BUSINESS
$139.9 Billion Intrinsic Value

Fannie Mae JPS $19.1 billion par value
Freddie Mac JPS $14.1 billion par value

The amount of $402.9 billion is the calculated Intrinsic Value of the Earnings Power of both businesses combined using a Price to Earnings Ratio of 14.

THE FIGHT FOR THE EARNINGS POWER OF THE BUSINESS

Fannie Mae’s common stock outstanding 1,158,087,567

$18.8 billion net income / 1,158,087,567 = $16.23 per share of earnings,

PE Ratio of 14 x $16.23 = $227.22 per share intrinsic value.

With the WARRANTS: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent adds a total of 5,761,629,686 shares outstanding…

$18.8 billion net income / 5,761,629,686 = $3.26 per share of earnings,

PE Ratio of 14 x $3.26 = $45.64 per share intrinsic value.

Transfer of Ownership Cram-Down

Explained,

Legacy Shareholders means, collectively, each person that owns common stock of the Company immediately prior to the closing of the Transaction (cram-down) which in no event shall include any of the Investors; or very few will remain afterwards maybe 1% or less.

A cram-down deal refers to a situation where an investor or creditor is forced into accepting undesirable terms in a transaction or bankruptcy proceedings.

In the case with Fannie Mae the Treasury's holding of senor preferred stock in the amount of $120.8 billion, with a liquidation preference of $199 billion.

If the Treasury converts this amount of SPS into common stock the Treasury in essence will own 99.9% of all the common stock outstanding. The number of shares outstanding depends on price per share at the time converted. The amount of shares outstanding after the cram-down does not matter at all, it's the percent ownership, a transfer of ownership from the legacy common shareholders to the Treasury. This transaction will cause the legacy common stock to vanish along with any short positions, naked short positions as well as any counterfeit common stock outstanding. Afterwards, the Treasury can do a reverse split reducing the amount in number of the new common stock outstanding to what ever amount desired.

[Rodney5]

In addition to the intrinsic value of the earnings power of the business the calculation of the pay down of the liquidation preference of the Senior Preferred Stock should be included and added to the share price. $301 billion sent to the Treasury is enough and the over payment should be returned to the companies.

Courtesy of Bryndon Fisher

https://drive.google.com/file/d/15978NWfDcTtuClMBnwgWFmoPnwK94vWn/view

The liquidation preference has been paid and the Senior Preferred Stock should be canceled.

[stockanalyze]

forecasting value isn't a problem, timing is, time value of money. 16 years has eaten up all of it and this is treading in negative. 16 years is a very long time, when retirees, mom and pop investment, education money has been decimated and many have died without seeing a dime of their hard earned money. unforgivable. this message board is all fine, keeping this going. but i feel they want everyone out, my suspicion is 99% of legacy owners are out , we know big names like berkowitz, paulson, perry, capital group are out and many retail investors left for greener pastures making 100x or 200x return when amazon, tesla, microsoft, apple have become several trillion dollar companies and with momo stock like amc, gme and crypto that sec did nothing to stop. ackman has less than 1% in it and doesn't care. who knows he may have exited. botttomline is bank lobby is too strong and fannie freddie is their piggy bank to latch on. i seriously doubt election outcome , in either direction, will have any impact on share price. we have seen it with 3 adminstrations. hope is not enough.