I think the Government should claim that all the money paid back by the "TBTF" banks was just return on investment, and never went to principal, that way they can start sweeping all their profits, too. Start with Goldman-Sachs.
@Chess, not that I believe Log got back in at 2.58, but he is claiming he bought FMCC not FNMA, which (FMCC) did drop to a low of 2.58.
Ackman's claims on stocks are theoretically true, but the market can follow a different path.
Herbalife is a pyramid scheme, but in the early stages of a pyramid scheme it can look like a growing, thriving company. Ackman was not wrong when he bet against them, but his timing was off a bit with the market.
F&F are being sacked illegally by the Government, to benefit the "TBTF" banks, but if you believe that the US Treasury has to follow the law, then Ackman is correct in believing that F&F have enormous value potential.
(sorry, I didn't follow his JCP trades so I'm not going to comment on those)
They got that right, it was not a loan, it was a heist!!!!
I definitely am not complaining about this stock, I just thought at the time that it was a safe bet that the DIV would stay at a quarter each Q for 1 year.
Lol, I like that chart! But the bet wont be settled until they declare the next DIV.
Its last price was .0001, yahoo rounds off! This stock is only worth what the market will pay, and right now that's about as close to zero as you can get.
Any one here, think it will increase (or decrease) in the near future.
@Naveeny, If Government stayed out of it, Big Banks would have failed (JPM, CitiBank, Morgan-Stanley...etc). Fannie and Freddie would have suffered a little from the economy taking a hit, but they would have been fine.
@Cracker_Melon, Pershing Square Cap Mgmt =$16 Billion X 3% = $480 Million / share price ($2.5) = 192 million shares. That's pretty close to 10% of all the shares out there! The caution is a disclaimer for other investors following his lead.
Yeah, some idiots even believe that the NSA is recording all of our phone and internet activity.....how stupid do you have to be to believe that...........???????
the article also stated that Fannie and Freddie represent 3% of the multi-billion dollar hedge fund.
This is what Ackman really said,
"While we remain confident in the prospects for Fannie and Freddie and believe our investment in their common shares will ultimately be worth a large multiple of current prices, the litigation is likely to continue for a protracted period before being resolved, unless the Administration, Treasury, Congress and other interested parties forge a consensual resolution.”
please note... "WORTH LARGE MULTIPLE OF CURRENT PRICE"
If Sweep ends, then price =$25-$35.......then, if Warrants invalid = $125-$175. Simple as that!!!!
What does the rest of the world think, when they see the U.S. so desperate that it is stealing private capital?