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Federal National Mortgage Association Message Board

  • uchenb02 uchenb02 Jun 13, 2013 3:51 PM Flag

    Fannie stock worth ZERO: Reasons

    If you can tell me why this stock is worth $1.85 I would be interested in listening, please state your valuation method, and Facts.

    Everyone is going LONG is "hoping" and "speculating" that the Government will change their current policy on FnF, while it's a long shot, very long shot, people are still willing to gamble. It's not to say there's no money to be made here on a pump and dump scheme, but if you want a stock with some real value, Fannie Mae isn't what you are looking for.

    Here's Why the Stock is Worth Zero (Facts)
    1) Fannie Mae Common Share has no voting Rights
    2) Fannie Mae Common Share has no dividends as it all goes to Government
    3) Commons Share is last when company liquidates
    4) Fannie Mae dividend paid to government does not reduce/dilute governments 79.9% of ownership
    5) Current and future Fannie Mae profits will go to the Government as payment for the risk they endured

    Unless the government's policy changes, Fannie & Freddie's common stock are worth ZERO !

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • The above posting was #2 in number of replies with 107 including mne now

    • Still true Today !

    • Thats why it went to 5.47 Uchen ! And why when you bashers get nervous you bump B S posts to the top. Desperation tactics... fear tactics... What is coming is
      Record profits in Billions!!!! Dont get caught with your pants down on this one Uchen!!!

    • He told you "no value", so he can enjoy the big profit, if it is no value why just return to us, why they want to take political risk, be sued by us in court but still refuse to do it. "Money-losing business without people, beheading people do big business"!

      Sentiment: Strong Buy

    • uchen, you fail to mention any other facts than the ones that you've cherry picked to support your argument. Let me give you one example: go read the details on what a conservatorship is, and what powers are given to the conservator.

    • 1. WRONG.
      20.1% is a blocking minority ownership. Shares no voting rights only when C-ship is continued.
      2. WRONG.
      Not all money goes to Government, part still staying in company. They dont came to shareholders, but they increase the value of company
      3. RIGHT. it is always so, so do you think any other common stock worth something? That's mean comons get something
      4. Of course, but when dividents will exceed the amount of bailout - you will cannot say something like "they waste taxpayers money"
      5. WRONG. It's only your fantasy, nobody know where goes FUTURE profits

      • 1 Reply to lingviston
      • 1) How can it be wrong when it is still in C-Ship, it is in C-ship as I type this, it would be only wrong if it was out of C-ship which is Common Shares have no voting right is a FACT today !!

        20.1% isn't going to be blocking anything !

        2) Statement was all DIVIDEND goes to Gov't which is TRUE. majority of the profit is going to the company, only a small small portion is staying with the company, not enough to justify any price change in the common stocks

        3) Based on Fannie Mae's asset today, IF company does liquidate, common share won't get a penny.

        4) Once Dividend exceeds bailout, it would just mean that the Gov't broke even, no where does it say that once that is met, Gov't has to reliquish ownership, thus thing won't change.

        5) It is NOT my fantasy, I'm stating FACTS as it is today, and since Fannie is in C-ship today, all of the profits will go to Gov't, unless Gov't Policy changes. So unless you can see into the future, I would have to use status quo as basis instead of wild speculation.

    • These false gurus want to tell you that they are the ones who are cause and effect of the behavior of this stock today.
      But they are just pompous, self-aggrandizing opportunists! They are like roosters trying to take credit for the sunrise, eh.
      The opportunist tries to pump -- pomp, if you will -- himself out in front of "macro Market" events to promote himself as Master of the UNIVERSE.
      Sometimes there are situations that create random and wild market swings that can only be explained by randomness.
      Put all the charlatans on IGNORE, and laugh in the face of any number of these hucksters trying to elevate themselves as "gurus of consequence", eh.
      This was just unpredictable "randomness of life" in the investing world; recall how out how it hit Japan earlier this week.
      Anyone who tells you otherwise is a pretentious poseur, aiming to scare you into selling to boost his profit$$!
      Stay the course and don't let anyone talk you into selling! GLTA

      • 1 Reply to dmesshian
      • No Guru here, just stating the FACT as they are today.

        Not one person have posted about why Fannie Mae is going to increase in price without putting in wild speculations, speculation that FnF will be out of C-ship, speculation that lawsuit against Gov't will triumph.

        Without any of those speculation, I can put a valuation of Zero on Fannie Mae, not an opinion, not my calculation or formula.

        Just trying to educate those people who are investing based on rumors, and stories instead of their mind.

    • Ahh, Market is finally realizing this !

    • I tell u stack worth one hundred buck each one.

    • hence the lawsuits

      Sentiment: Hold

      • 1 Reply to goblin977304240
      • change begins with a single voice expressing an idea of change. change occurs with action...actions speak louder than words....and the action of the lawsuit is louder than your voice....hold strong long holders...the road to riches is covered in #$%$...and the very notion that these great american companies, founded by some of the greatest american political leaders of our history, is some how involved or requires a pump and dump scheme is a slap to the face of those very leaders that saw us through the great depression as well as world war should be ashamed of yourself....these two companies are vital to the nations economic health

        Sentiment: Hold

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