Hi, Ackman Bets On $100+ For Fannie And Freddie - New All-Time Highs Oct. 20, 2014 8:13 AM ET | About: Fannie Mae (FNMA), FMCC Disclosure: The author is long FNMA, FMCC. (More...) Summary
•§If Fannie Mae and Freddie Mac were not bailed out, their book value starts at $31/share.
•§Treasury takeover forced Fannie and Freddie to pay interest on accounting losses that Treasury triggered that were not necessary as evidenced by reversals.
•§Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds to bail out America.
•§Ackman says that he expects the share value to be $23-$47, but opportunity cost with preferreds and risk profile demonstrate otherwise.
MfG |