Added to YB: 2024-03-12
Pitch date: 2024-03-12
FNMAS [bullish]
Federal National Mortgage Association
+648.25%
current return
Author Info
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Company Info
Federal National Mortgage Association provides financing solutions for residential mortgages in the United States.
Market Cap
$35.2B
Pitch Price
$1.43
Price Target
27.06 (+153%)
Dividend
N/A
EV/EBITDA
N/A
P/E
12.0K
EV/Sales
N/A
Sector
Financial Services
Category
special_situation
Fannie Mae Preferreds - $FNMAS
FNMA prefs are cheap at 12-18% face value and offer 6-8x upside in recapitalization scenarios. Prefs are safer than commons with negotiating leverage, but Ackman prefers the commons and Mazo's analysis values the common shares between $15 and $43 per share in an IPO scenario (10-18x current prices), but they warn about dilution. Key variables: capital requirements, IPO valuation, govt haircut on $195B liquidation preference. JPS have negotiating power. Trump win could accelerate, but long-term bet on rule of law.
Read full article (11 min)