Richard bove and fannie mae preferred shares

Many analysts argue that there is no bull case for Fannie Mae and Freddie Mac common shares.!

If released from conservatorship, Ackman figures shares to be worth $23 at least while Dick Bove values them at $18 each.

There are two new issues concerning Fannie Mae worth considering at the present time.

Many analysts argue that there is no bull case for Fannie Mae and Freddie Mac common shares.

For now, tempted investors may be best off buying preferred shares.

GSE junior preferred shares also also hit hard.

In recent weeks, former Freddie Mac CEO Don Layton wrote two monographs about Fannie Mae (FNMA) and Freddie Mac (FMCC) privatization and GSE reform. Analyst Dick Bove of Odeon Capital read those monographs and set out what he thinks must happen to provide the best possible results for investors.

First steps toward Fannie Mae, Freddie Mac privatization

According to Bove, one of the first things that must be done is to have the senior preferred shares be declared fully paid in both principle and interest.

If this doesn't happen, he says there is no next step. Additionally, the junior preferred shares should pay an initial dividend and then called and replaced with a new issue of preferreds.

Bove also thinks the government should exercise its warrants and argues that Federal Housing Finance Agency Director Mark Calabria must be removed from his position.

Bove believes Calabria wants to eliminate Fannie Mae and Freddie Mac and argues that he has taken some ste