Replies to post #822506 on Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks Sortman - Do you have an estimated dilution post JPS conversion and a value target?

[Rodney5]

The JPS are non-cumulative, no reason for management to allot any money on behalf to the shareholders at this point in time to exit conservatorship and re-list on the NYSE. When management determines to reinstate dividend payments the companies can choose to sell into the open market new issues of cumulative preferred stock at a lower payout amount replacing the higher yield on the existing JPS and shareholders of the then old issue receive par.

This was explained: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175927399

[kegstackz]

yes, but is this guaranteed? i was under impression juniors might get hosed. basically, that IF they are issued they have precedent and not subject to dilution.
and thus there was some inherent risk. its why you are looking at a 2x instead of 4x growth comparatively thus far?
sorry, i never gave FNMAS much of a look, or exact guarantee implied. I was loading up on commons in 2022, and then reinvigorated when ackman vocally joined the picture.

[kegstackz]

this is what i was looking for. thanks. i'm a common man who loaded up on commons, man.

[Wingsjr]

You have no voting rights, only commons have voting rights. If they try conversion everything to do with release will be halted by a class action lawsuit. If you’ve been paying attention, the Judges are against all things 47. That will end release for 10 years.

[bcde]

Current political goal of Trump administration is to make housing affordable to all.

Any conversion of of JPS or SPS will not only complicate everything forever but also makes common shares and warrants worthless. Even conversion of warrants creates legal problems and complicates everything. Why would any one wants to buy common shares of such companies?

Gov has already made good money through penalties on big banks, SPS interest and NWS.
The easy and simple way Gov can make money from FnF is to buy back warrants at good price without creating legal problems.
Then using SPS as a back stop for FnF without Gov explicit guarantee helps to stabilize MBS market..

Respecting the rights of existing JPS and common share holders is the only easy and simple way to end conservatorship and all the mess previous FHFA conservatorship has created.