1) FNMA last year within 9 months posted 9.7 BILLION DOLLARS net profit.
2) The company said it will post SIGNIFICANT PROFIT at Q4 (Expecting Q$ numbers out very soon maybe this coming week)
3) The company made agreement with Bank of America in January 2013. Bank of America will pay to FNMA 3.6 billion dollars plus to buy back 7.6 billion dollars bad loans that they sold to FNMA. It means 11 billion dollars another advantage FNMA got. I mean first quarter of 2013 we will see huge profit as well.
4) There are 16 bank have to get agreement with FNMA to get back bad loans that they sold FNMA. I believe some of them will pay this year to FNMA. All 16 banks paid to FNMA it is bad loans portfolio pretty much will be cleaned out.
5) Home prices increases that is another good sign FNMA will post big profits in 2013.
6) The government controls 80% of FNMA by owning 80% of preferred shares.
what is gonna happen?
The Governments preferred shares will be converted to Common shares and The government will sell those shares and taxpayers money will be paid off. Like US government dis on AIG, BAC, CITI.
Probably those common shares will be purchased by FNMA.
7) ONE OF THE MOST IMPORTANT THING FNMA has 61.1 BILLION DOLLARS deferred in come tax asset.
SO pretty much the money is ready to pay back like WSJ articles said.
8) For those reasons above FNMA common shareholders will make significant profit in coming days, weeks, months and years. Remember SIRI was 8 cent rocked to over 4 dollars.
My Target within 3 years 100 DOLLARS per share IMHO.
Also last 6 day trading days volume shows big money started to pick up FNMA.
FNMA holds 3.2 TRILLION DOLLARS Asset. The biggest company in the world.
Happy trading to everyone
Sentiment: Strong Buy
nice points! all the loans since 2009 are low interest and will not be refinanced either, thats guaranteed money so long as the country doesnt go into depression and with energy independence occuring and the start of a secular bull market were in a great position!
I'm very bullish on FNMA. It would help if you got your facts straight. For example, the government DOES NOT own 80% of FNMA. They have warrants that they cannot exercise, because the debt to Treasury is rapidly being repaid Takings Clause of the Fifth Amendment. Shorts and politicians and other rabble may huff and puff, but they cannot change our Constitutional rights.
Sentiment: Strong Buy