Wednesday, November 12, 2014

Is Fannie Mae Really a $50 Stock?

Is Fannie Mae Really a $50 Stock?

The answer is YES, more like $130 without the takings of the US govt.

Remember in 2014 fannie will make in profit of 14 BILLION dollars.

Billion. there are only 1.2 billion shares out. This makes it about $11 per share in earning per year.

P/E of 12 is fair on most stocks. THATS $132 a share and that is no lie.

But we all know the govt says Fannie has paid nothing back even though we all know they paid 135 billion for the 117 that they received. Dont forget the 117 is with 10% interest in that total. Its not added to it.
117 billion is principal with interest. Principal is around 85 billion.
Either way the govt has made over 50 billion on their investment in last 5 years.
And is raking in over 5 billion every 3 months in TAKINGs.

These numbers are not Freddie Mac. ONLY FANNIE.

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