First Marblehead Corp (NYSE:FMD)

CAPS Rating: 3 out of 5

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.


Player Avatar Turbolover (87.01) Submitted: 1/27/2010 3:36:21 PM : Underperform Start Price: $21.30 FMD Score: +57.70

Revenue stream seems to have dried up.

Report this Post 3 Replies
Member Avatar mb335 (< 20) Submitted: 1/29/2010 10:30:19 PM
Recs: 0

I got pounded so badly by First Knucklehead a few years ago, I can never consider getting back in.

Member Avatar carlbarfuss (84.00) Submitted: 2/10/2010 8:30:24 AM
Recs: 0

Revenue has been dead ever since the credit crunch started. This company is being evaluated on future potential of the securities market to return to some function of normalcy in regards to private student loans. To those individuals who say that they could "never get back in" to FMD for various reasons, I would urge you to consider that at a low enough price, any stock can be an attractive investment. At almost 4.50/share in cash and short term loans as of Feb '10, FMD has a very solid margin of safety to it. Trading at under 50% of your cash on hand is about as safe as you can go. If another company doesn't attempt to buyout the company to take advantage of its competitive edge then they will be back in business sometime in 2010 barring another collapse of the credit market.

For more information check the message boards for FMD here at the Fool. Cheers!

Member Avatar zawy (41.96) Submitted: 11/9/2010 6:01:10 AM
Recs: 0

How did they double their cash and cash equivalents in 1 year without hardly any revenue?

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