Replies to post #129460 on Fannie Mae-No Politics (FNMA)

[huka]

You answered your own question ~ undervalued and overdue imo!

leach342 Member Profile leach342


Sunday, June 30, 2013 9:34:18 PM
Re: None

Post # of 129462

FNMA's book value may reach $144.00 FNMA's book value may reach $144.00

Profits: Profits: Q4 2012 = $7,570,000,000 Q4 2012 = $7,570,000,000 Q1 2013 = $8,100,000,000 Q1 2013 = $8,100,000,000

Let's assume that FNMA keeps doing well in this Let's assume that FNMA keeps doing well in this recovery of housing market and they make recovery of housing market and they make conservative conservative profits of $5B per Q in the next 2 profits of $5B per Q in the next 2 quarters. quarters. Q2 2013 = $5,000,000,000 (vt's conservative estimate) Q2 2013 = $5,000,000,000 (vt's conservative estimate) Q3 2013 = $5,000,000,000 (vt's conservative estimate) Q3 2013 = $5,000,000,000 (vt's conservative estimate)

Q3 YEAR-TO-DATE profits of $25,670,000,000 Q3 YEAR-TO-DATE profits of $25,670,000,000

And let's use conservative PE ratio of 6.5 and divide by And let's use conservative PE ratio of 6.5 and divide by 1,160,000,000 shares outstanding 1,160,000,000 shares outstanding

BOOK VALUE PER SHARE = $144.00 BOOK VALUE PER SHARE = $144.00

I, for one, cannot wait for Q2 results! I, for one, cannot wait for Q2 results!

Even if there is a restructure, and government owns Even if there is a restructure, and government owns 80% of the company, 20% is still 80% of the company, 20% is still $28/share! $28/share!

[401kobessive]

demand is higher than supply.