when things settle and housing goes back to normal; FNM will make at least $5.00/sh (In old days it made $7.00/sh)' which means govt gets 4.00 and existing share holders $1.00/year. Not bad for a $0.48/sh investment.
Realisticly, does it really work that way? Hell, if the stock gets to $5, I'm going sell it and get all $5. What's this sheeet about the government getting $4??
There is a slight flaw in your understanding. The stock dont go to $5.0; the earnings goes to$5.0/sh and ur share of earnings is $1.0/sh. The stock will go $10/sh at PE of 10
Assuming they exercise the warrants. If not shareholders could get much more.
how long do u think that will take?