So what is FNM and FRE going to open at Monday?

[ang_99]

Surely there is nothing left for equity holders after a complete govt takeover.

 

[nutmeg]

Well, we do know there is a atmosphere of fear.

WWCD - What would China do? Another trillion in a penny stock should offer some price resistance, ya think? I'm not sure they would do that though, buy more.

 

[Daal]

"In a sign that some action was imminent, Freddie Mac changed its bylaws Thursday in a way that investors said could pave the way for Treasury or another large investor to take a controlling stake. Previously, Freddie Mac had a bylaw that prevented an investor with a stake of 20% or greater from voting without the approval of the other shareholders. It eliminated that restriction."

the treasury will(in addition to the preferred stock) buy equity or warrants, it will depend how much dillution they decide to create. Given bernanke comments in jackson hole it doesn't look good for bill miller but the stock has priced in tons of stuff so who knows

 

[drsteph]

ah. so that explains thursday's price action. I was simply uninformed.

 

[S2007S]

I think every article I have read states both CEOs going bye bye, billions of tax payers money being used and both stocks being worth nothing.

 

[Comptalk]

I still would love to know what will happen to the preferred stock and senior debt holders. Bloomberg said they would probably be OK, CNBC says they would be diluted. ????

 

[Trendytrader]

This song says it all!

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[m22au]

https://www.citigroupgeo.com/pdf/SNA24302.pdf

Citi has price targets of 32 cents (FNM) and 31 cents (FRE)

 

[Cutten]

Quote from m22au:

https://www.citigroupgeo.com/pdf/SNA24302.pdf

Citi has price targets of 32 cents (FNM) and 31 cents (FRE)

This guy needs to be fired asap. Worst "analysis" ever.

 

[m22au]

I think the analyst's method (percentage * "fair value") is silly.

However with my back of envelope calculations on Sunday, I came up with similar price targets in the 20 to 39 cent range.

Going by the premarket quote of $1.60, it's evident that I am wrong in the short term.

Do you have a particular "fair value" Cutten?

Quote from Cutten:

This guy needs to be fired asap. Worst "analysis" ever.