Replies to post #803515 on Fannie Mae-No Politics (FNMA)

[jcromeenes]

This last week has been REALLY FUN. I hope it never ends. Sadly, we will see red again one day and I know it's going to feel like a death in the family after all the exuberance from this sweet climb. lol

[kthomp19]

I think the price is reflecting what people know to be true.

FNMA went well over $4 in the aftermath of the 2016 election. Just check a price chart to see what happened after that.

The big question now is the warrants and how that will play out.

No, the much more important concern for the commons is what Treasury will do with the senior prefs. A conversion of those to common, as John Paulson has implied will happen, would cause the commons to be worth far less than they are today.

Caveat emptor.