$2.27
-0.01 (-0.44%)
The First Marblehead Corp (FMD)
CAPS Rating:
The Company with its subsidiaries offers national, regional financial, educational institutions, as well as businesses, education loan marketers & other organizations, a suite of outsourcing services for private education lending in the U.S.
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Fool UK
Recs
Re-load on this one, but here was my original pitch, before the big fall, then run-up, and then fall again (but still net positive to my score when I closed-out). LT, I still think this one will make it, but the road will certainly be bumpy and full of some risk:
"Well, I had this one as an outperform for a while and got pummeled in CAPS due to the obvious reasons of the shrinking credit market and guarantee comanies going under. However, at this point, I thinking that it is time to re-up on FMD, as they will most likely survive the credit storm, due to:
- pretty decent management that was handling the business well until the recent financial maelstrom
- there is no way the gov't is going to allow there to be no credit available for student to take out loans for education
So while FMD will probably not reach the prices it once received (due in large part to a change in the model structure to self funding debt), it will probably have a lot of upside from these fire sale prices.
2 thumbs up out of 3 (tivo terms)"