Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2589166 times)

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9550 on: March 15, 2018, 10:55:17 AM »
Any preferred holder with an Ameritrade account?

This was posted yesterday at the ihub preferred board:
Quote
We are writing to inform you of a buy-out that's currently being offered to certain shareholders in a class of stock that you are invested in. Current holders of FNMAS, among other classes of Fannie Mae Preferred Stock, are being sought by a private investor that is seeking to make a large investment in Preferred Stock of Fannie Mae. The current price offered for FNMAS is $12 per share. If you are interested in this offer, please contact your local office to initiate the transfer process and the cash will be deposited into your account.

The highest weekly closing price was at $12.31 on March 2014.

I don't have an Ameritrade account, but I would give this a 99.999% chance of being fake. The poster who posted this is mostly a troll in sheep's clothing, saying the opposite of other trolls like CatBirdSeat.

An announcement like this doesn't make any strategic sense either. An offer like this would be negotiated and only with large holders. I highly doubt that poster has a large enough position to matter.


SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9551 on: March 15, 2018, 10:56:06 AM »
Any preferred holder with an Ameritrade account?

This was posted yesterday at the ihub preferred board:
Quote
We are writing to inform you of a buy-out that's currently being offered to certain shareholders in a class of stock that you are invested in. Current holders of FNMAS, among other classes of Fannie Mae Preferred Stock, are being sought by a private investor that is seeking to make a large investment in Preferred Stock of Fannie Mae. The current price offered for FNMAS is $12 per share. If you are interested in this offer, please contact your local office to initiate the transfer process and the cash will be deposited into your account.

The highest weekly closing price was at $12.31 on March 2014.

Considering the source and the lack of any other news, I'm highly skeptical.

Edit:   Is this facilitating a block trade?   Is this really how block trades ever work?

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9552 on: March 16, 2018, 10:12:24 AM »
Ackman and Treasury in the same boat. Their shares total about 90% of common shares.

https://backend.otcmarkets.com/otcapi/company/financial-report/189048/content

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9553 on: March 16, 2018, 12:25:50 PM »
Mark Zandi, March 16th, 2018: The longer the GSEs remain in conservatorship, the harder it will be to get them out. That they will likely soon be scored by the CBO as providing a negative subsidy and thus providing revenues to the Treasury for other government needs will make it doubly hard politically to change the status quo. This is unfortunate, as the GSEs in conservatorship will not be able to keep up with the changing demographic and technological needs of the nationís underserved mortgage borrower.
https://www.urban.org/debates/revisiting-housing-finance-why-federal-role

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9554 on: March 16, 2018, 01:27:37 PM »
Mark Zandi, March 16th, 2018: The longer the GSEs remain in conservatorship, the harder it will be to get them out. That they will likely soon be scored by the CBO as providing a negative subsidy and thus providing revenues to the Treasury for other government needs will make it doubly hard politically to change the status quo. This is unfortunate, as the GSEs in conservatorship will not be able to keep up with the changing demographic and technological needs of the nationís underserved mortgage borrower.
https://www.urban.org/debates/revisiting-housing-finance-why-federal-role
Where in the debate is Josh "utility" Rosner?

locutusoftexas

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9555 on: March 16, 2018, 04:52:44 PM »
Mark Zandi, March 16th, 2018: The longer the GSEs remain in conservatorship, the harder it will be to get them out. That they will likely soon be scored by the CBO as providing a negative subsidy and thus providing revenues to the Treasury for other government needs will make it doubly hard politically to change the status quo. This is unfortunate, as the GSEs in conservatorship will not be able to keep up with the changing demographic and technological needs of the nationís underserved mortgage borrower.
https://www.urban.org/debates/revisiting-housing-finance-why-federal-role

The government likes free money and the GSEs are like perpetual money machines. Unfortunately the Second Law of Thermodynamics tells us that, just like perpetual motion machines, this is impossible. Ultimately there will be a steep price to pay if the government maintains the status quo for the GSEs. A simpler example of "money for nothing" is that of AIG selling credit default swaps without the reserves to pay when the mortgage-backed securities defaulted. This was a major factor precipitating the financial crisis of 2008-9. AIG thought that the chance of default was infinitesimal, which was counter to both statistics and the Second Law. The main question is, "What are the potential negative consequences of the government continuing the NWS and robbing the GSEs and their shareholders?"

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9556 on: March 17, 2018, 06:11:24 AM »
I'm fairly surprised there was no modest bounce from the kudlow news over the past two weeks given his past social media comments + being plugged into a position that theoretically has actionable power on the matter.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9557 on: March 17, 2018, 07:54:09 AM »
I'm fairly surprised there was no modest bounce from the kudlow news over the past two weeks given his past social media comments + being plugged into a position that theoretically has actionable power on the matter.

i am watching congress dysfunction over the dodd frank amendment bill.  bipartisanship agt to mostly to help small banks is fragile and may not survive a reconciliation process.  if congress cant pass this modest bill then forget about housing finance

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9558 on: March 17, 2018, 09:39:59 AM »
I'm fairly surprised there was no modest bounce from the kudlow news over the past two weeks given his past social media comments + being plugged into a position that theoretically has actionable power on the matter.

i am watching congress dysfunction over the dodd frank amendment bill.  bipartisanship agt to mostly to help small banks is fragile and may not survive a reconciliation process.  if congress cant pass this modest bill then forget about housing finance

regarding the dodd frank bill, imo it will get done.  there were 67 votes in the senate, not 60, creating a little wiggle room.  hensarling is likely posturing, he'll throw in a few large bank goodies and perhaps lose a few D senators and call it a day.

on the kudlow news, not even a little bounce? my best guess is that potential institutional buyers are aware that ackman / berk / perry are selling and they think they'll get better prices in the near future.





investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9559 on: March 17, 2018, 03:08:53 PM »
You mean to say you know that Berkowitz and Ackman are selling? How?
I know this was debated here. But it does sort of make sense that government may only settle with shareholders who owned before NWS and with those who still own them. In pre NWS holder case, it is easily proven of harm. Those who bought after, knew NWS existed. So I am not happy as I am after NWS buyer. But the point here is if Berkowitz and Ackman are selling their pre NWS shares and will buy later, I doubt they will be compensated for post NWS shares.

I'm fairly surprised there was no modest bounce from the kudlow news over the past two weeks given his past social media comments + being plugged into a position that theoretically has actionable power on the matter.

i am watching congress dysfunction over the dodd frank amendment bill.  bipartisanship agt to mostly to help small banks is fragile and may not survive a reconciliation process.  if congress cant pass this modest bill then forget about housing finance

regarding the dodd frank bill, imo it will get done.  there were 67 votes in the senate, not 60, creating a little wiggle room.  hensarling is likely posturing, he'll throw in a few large bank goodies and perhaps lose a few D senators and call it a day.

on the kudlow news, not even a little bounce? my best guess is that potential institutional buyers are aware that ackman / berk / perry are selling and they think they'll get better prices in the near future.

as stated in the post, it's a guess.   my main suspicion is ackman selling, dragging down the whole complex (as investors rotate between the two).   he has punted other legacy dead end positions recently and fired staff; he's likely under investor pressure to tighten his ship.  when corker's plan was either released (perceived as not good for common) or failed, and phillips made his downbeat comments several weeks ago - combined with our terrible court record - he perhaps lost any visible catalyst to justify near term success. 

i could be way off.  but if i'm right, things will stay stuck, at best, until a huge clean up block trade happens in the common shares.