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David Sims

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  • Fannie And Freddie Investors Unite In Washington DC [View article]
    I think you are the one confused. Government has no place profiting from private enterprise. Shareholders still hold at least 20.1% of the diluted shares and 100% of the issued shares. Holding 79.9% of the stock does not give the government 100% of the profits.
    Apr 9 06:27 AM | 18 Likes Like |Link to Comment
  • The Only 20 Companies That Matter [View article]
    I have an idea. Let's take Fannie and Freddie and wind them down to 0 over the next 5 years... And we'll replace them with something more expensive that fixes none of the problems that we had with the last system. That's the plan proposed in Congress.
    Mar 26 08:56 PM | 17 Likes Like |Link to Comment
  • Frannie Folly [View article]
    You should educate yourself on the original terms of the GSE bailout before rushing to judgement on the merits of the lawsuits and the investment.

    An agreement was made September 2008 and shares continued to trade. The contract between shareholders and the government has not yet been breached. (As in cash payments are not beyond the original agreement yet.) This is why Lamberth said the claims are not yet ripe.
    Oct 3 11:11 AM | 14 Likes Like |Link to Comment
  • GSEs near deal to re-ignite mortgage lending [View news story]
    Congratulations to the bankers on their great deal!

    Shareholders are still waiting for our rights to be restored.
    Oct 17 12:31 PM | 12 Likes Like |Link to Comment
  • Fannie Mae And Freddie Mac: The Bill Ackman Perspective And Huge Return Potential [View article]
    Thank you for writing on this subject from an independent perspective. As a long-time shareholder, I value this type of insight.
    Sep 7 11:04 AM | 12 Likes Like |Link to Comment
  • Government Profits From Continued Control Of Fannie And Freddie [View article]
    Notice that Mr. Wall does not talk about the benefit provided by the GSEs, just theoretical costs that cannot be determined without much debate. Mr. Bill Gross of PIMCO stated in September 2010 that the GSEs save borrowers 300 to 400 basis points on mortgages. On assets of $5 trillion, this amounts to annualized savings of $150 billion to $200 billion per year. Name one other program that provides so much stimulus to the economy using a private market mechanism. Housing is 20% of GDP.
    Apr 3 12:57 PM | 12 Likes Like |Link to Comment
  • Fannie And Freddie: It Was Never An Issue Of Solvency [View article]
    You are also wrong about when the GSEs book losses. Read the section where I pull 2010 SEC filings that state they are fully reserved for losses from the 2008 book of business. Under accounting rules, you book a loss when it is recognizable and probable. In this case, they booked the losses before the foreclosure actions/full defaults took effect. They state that they may be over-reserved for these losses.

    I'm a CPA and have worked in public accounting, SEC reporting, general ledger accounting, and the brokerage industry. Don't try to spin this.
    Oct 7 05:23 PM | 11 Likes Like |Link to Comment
  • Frannie Folly [View article]
    I am not a billionaire. I own the shares.
    Oct 3 11:15 AM | 11 Likes Like |Link to Comment
  • Fannie And Freddie: It Was Never An Issue Of Solvency [View article]
    Your statements are completely off. Low Income Housing Tax Credits (LIHTC) are different than Deferred Tax Assets. In this case, the DTAs are related to accounting losses and the resulting Net Operating Loss carryforward that is used to offset future tax liabilities.

    Here is some standard language that speaks to DTAs that I pulled from Wikinvest.
    "We recognize the expected future tax benefit from deferred tax assets when the tax benefit is considered to be more likely than not of being realized. Otherwise, a valuation allowance is applied against deferred tax assets. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income."

    In this case, the expectations of future taxable income were removed by Treasury's wind-down rhetoric. The act of saying that they were going to kill the GSEs impaired the asset.
    Oct 7 05:19 PM | 10 Likes Like |Link to Comment
  • Fannie And Freddie Poised To Break Out [View article]
    I've made my opinion pretty clear.

    Just saw this and thought that it was an appropriate response to you.

    "Fannie and Freddie Have a Liquidation Value of $200 Billion?

    By Paul Muolo

    Fannie Mae and Freddie Mac have a liquidation value – excluding what they’ve already paid to the federal government – of roughly $200 billion, according to an independent evaluation conducted on the two GSEs, said officials with knowledge of the audit.

    The report, conducted by Alvarez & Marsal, was making the rounds in Washington Wednesday morning. John O’Neill, a managing director in the evaluation firm of Alvarez & Marsal, confirmed to IMFnews that his company conducted an evaluation on the GSEs for the Blackstone Group, but said he was not at liberty to discuss its contents.

    At press time, no other information was available on the matter.

    Several hedge funds have bought large stakes in Fannie/Freddie junior preferred and common the past two years, essentially placing a bet on their return to profitability and the likelihood that down the road they might be entitled to a payout.

    By the end of March, Fannie and Freddie will reach a milestone: they will have paid the U.S. more in dividends than the $188 billion in federal assistance they received from the U.S. Treasury. For more on the story, see the Thursday edition of Inside Mortgage Finance. "
    Mar 19 01:23 PM | 9 Likes Like |Link to Comment
  • Why Does Ackman Think Fannie Mae Is A Ten Bagger? [View article]
    One of the reasons I sold my preferred and jumped into common was the complete illiquidity of the market on OTC. These stocks need to be relisted.
    Mar 5 10:25 AM | 9 Likes Like |Link to Comment
  • Surviving And Prospering Over The Next 4 Years Of Economic Darkness [View article]
    The melodramatic musings of the "Investor Class" have begun. Just like four years ago, stock market pundits appear to have a deep mistrust for President Obama. Drawing comparisons to Jimmy Carter, many are already talking about the perilous second term and the effects on the economy. Here's some news for you, Jimmy Carter's second term was actually Ronald Reagan's first. To think that one President's economy exists in bubble denies the facts. During the time Obama was actually in office there was job growth.
    Nov 7 11:32 AM | 9 Likes Like |Link to Comment
  • Ackman Bets On $100+ For Fannie And Freddie - New All-Time Highs [View article]
    If someone is planning on attending this event, please be in touch with us. Shareholders have a right to know what is happening. In fact, any significant discussion on the future of the companies needs to be disclosed in an SEC filing. So, I expect this to come today and will be watching.
    Oct 20 08:37 AM | 8 Likes Like |Link to Comment
  • Fannie And Freddie Did Not Need A Bailout [View article]
    Maybe we will all be permanently silenced and thrown in Gitmo.
    Oct 16 01:48 PM | 8 Likes Like |Link to Comment
  • Fannie Mae Ruling Means Ackman's Valuation Is Now $100-$250 [View article]
    We still have more than 1 dozen lawsuits still in the court rooms and the Perry case can be appealed. Judge Lamberth's conclusion is that Congress "parted the legal seas" with HERA. Investors can still raise a fuss with their reps to get this action corrected.

    Also, we have nearly 1,000 shareholders with Investors Unite representing 48 states. Please encourage others to join the group.
    Oct 1 09:16 AM | 8 Likes Like |Link to Comment