Could happen much sooner than thought possible. Or will shareholders be wiped out and Freddie bankrupted and what is the real probability, potentiality, practicality, of and that common shareholders will be harpooned? If the scenario suggested in my title happens fifty grand would suddenly be worth over a million and producing 30 grand in divvy's. I would like to hear some intelligent input, debate. A $50k/150k 'flyer' in Freddie could be a life-changer in a good way or a bitter and total loss, it appears - what are the odds?
as much as i enjoyed the thread, could i remind the gentlemen/ladies that a reverse split would destroy what is left...that is to say a 10:1 split would be advantagous. my guess is a run to 50$, with a 3:1 split.
de-listing killed fre from $1,20 level to .30 cent.
Re-listing. placing plans to raise financing. by reducing the 10% divi with market rate securities would push us up.
a deal to replance sr pfd and return money to taxpayers by applying the divi paid to principle would be huge.
A 4% divi - new sr pfd and old divi applied ot principle would make fmcc viable.- dfd tax asset back on the books+++
Positive items to come.
Mark to market losses on the interest swaps will end.
Reversal of itnerest rate swap M2M will be paper gains.
increase in RE Market- when not if- should reduce the massive $ in Reserves.
Selling Sr Pfd to private market would reduce divi on outstanding principle.
Combinatations of the above should allow the dfd tax asset on the books.
Re-lisiting will allow pps to increase.
Selling Sr Pfd equities should increas the pps.
How come we do not sell market rate sr pfd ?????????
And while you're dreaming about freddie running to 3, you should also consider that you may marry Miss Universe, win the Nobel Prize, and pitch the Chicago Cubs to a World Series win. HOP