Noted bank analyst Dick Bove of Rafferty Capital Markets thinks Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) can rise to $18 per share. Speaking on Fox Business with Charlie Gasparino, Bove’s logic is that the company is currently earning $1.60 per share. With a ten to twelve times earnings multiple applied to the stock, Bove thinks it could easily trade near $18 per share with one major caveat: The US Government needs to return the stock back to shareholders. US government put Fannie Mae stock into conservatorship In 2008 the government, under the auspices of the Housing Recovery Act, put…
Dick Bove Thinks Fannie Mae Could Be Worth $18 Per Share
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.