Replies to post #6210 on Fannie Mae-No Politics (FNMA)

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S&P KEEPS HOLD RECOMMENDATION ON SHARES OF FANNIE MAE
Friday 05/08/2009 9:39 AM ET - Standard & Poor's Research Notes
FNM posts Q1 loss per share of $4.09 vs. a $2.57 loss, narrower than our $6.25 loss estimate. While losses were less than Q4's loss of $4.47, much of the improvement was from lower fair value losses, which we view as a volatile metric. More importantly, in our opinion, net revenue fell 8% sequentially from Q4, reflecting lower expected prepayment rates, and credit-related expenses nearly doubled, indicating severe deterioration in FNM's loan portfolio. We are widening our '09 loss per share estimate to $21.56 from $20.02, and keeping our $1 target price.