With Fannie Mae's stock going up for different reasons, many investors accidentally bought
FNA (FEDERAL NATL MTG ASSN) instead of
FNM (Fannie Mae). There are lot of queries floating about
FNA. Just thought I will do some analysis and throw some light on
FNAFNM is the common stock, and
FNA is the convertable
preferred stock. Is FNA best bet of all the other preferred
FNM stock? Well, here are some details
http://www.fanniemae.com/ir/pdf/dividend_statement_rate_reset_033109.pdfFNA- 8.75% Non-Cumulative Mandatory Convertible Preferred Stock, Series 2008-1
Mandatory conversion: May 13 2011 - Each share of FNA will automatically convert into between 1.5408 and 1.8182 shares of FNM, subject to anti-dilution adjustment.
If optimistic on FNM, when it turns healthy again, resume paying divided, what would the preferred share price will be if at the above quarterly divided rate, Plus FNA can be converted to 1.5208 and 1.8182 FNM common shares on May 13, 2011
CROX - The bad old days