Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2532987 times)

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10370 on: August 09, 2018, 09:27:16 PM »
If an equitable settlement can be reached, there is no reason to continue on with the lawsuits as a matter of principle. Fannie and Freddie aren't the first nationalization, and won't be the last.
Since the prevailing view is of constructively putting things behind, I will not bring this up again.


SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10371 on: August 10, 2018, 05:35:55 AM »
Surely it will be challenging to get all common shareholders on board with settling litigation?  There will almost always be some form of contingent liability - in the sense that if Moelis plan is implemented, legacy common shareholders will still be suing over FHFA constitutionality and whether the initial takeover was legal?  The potential windfall to common shareholders is just so huge I don't see them all going away for $8 per share.  Amateur hour over here (me) when it comes to the legal side of the thesis though.

Interesting to know that statute of limitations re: NWS is coming up.  It would make sense to have a stopping point for any new litigation before finalizing any settlements w/ preferred litigants.

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10372 on: August 10, 2018, 05:40:42 AM »
With that said, buying some more this morning.   It's truly amazing that some of the variable prefs trade at an implied 19% probability of attaining par value.   The odds are clearly much higher.   

allnatural

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10373 on: August 10, 2018, 09:53:05 AM »
Right there with ya bud.

With that said, buying some more this morning.   It's truly amazing that some of the variable prefs trade at an implied 19% probability of attaining par value.   The odds are clearly much higher.

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10374 on: August 11, 2018, 08:29:10 AM »
rros is right. Shareholders after this loot are willing to settle for a whopping $3 per share? The preferred conversion to commons followed by an IPO to reissue similar junior preferred shares is just to enrich few and financial shenanigans.

Moelis plan is the best plan right now but needs lot of tweaking as it is simply funneling money.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142841825


I know many will simply feel happy by a windfall of any size, if it comes to that. Only a bitter-sweet victory for me. I simply can't believe tens of millions spent over 6 years in meaningful lawsuits will go by the wayside because suddenly the government unwinds the reason behind them. I prefer to believe Cooper is smarter than all of us and there is more to it in his latest filing.

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10375 on: August 11, 2018, 08:41:26 AM »
150 billion value for warrants as per Pershing. What pps would that be for treasury to exercise warrants? and final return %?

What about additional 150 billion recouped in mortgage settlements and fines that never made to borrowers?  Total Return % now?

Windfall for whom? Definitely not for shareholders who lost money in dividends for last 10 years and billions in defending an illegal taking.

https://assets.pershingsquareholdings.com/media/2014/09/09163712/2018-Interim-Financial-Statement-Letter-Only.pdf
« Last Edit: August 11, 2018, 05:44:49 PM by emily »

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10376 on: August 11, 2018, 02:38:18 PM »
rros is right. Shareholders after this loot are willing to settle for a whopping $3 per share? The preferred conversion to commons followed by an IPO to reissue similar junior preferred shares is just to enrich few and financial shenanigans.

Moelis plan is the best plan right now but needs lot of tweaking as it is simply funneling money.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142841825


I know many will simply feel happy by a windfall of any size, if it comes to that. Only a bitter-sweet victory for me. I simply can't believe tens of millions spent over 6 years in meaningful lawsuits will go by the wayside because suddenly the government unwinds the reason behind them. I prefer to believe Cooper is smarter than all of us and there is more to it in his latest filing.
The point I tried to make is unrelated to any common shares plight, I am sorry. I owned a small amount a long time ago and sold them all back then. I have no opinion on the commons.