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$8.78 -0.81 (-8.45%)
10/7/2008 4:00 PM

SLM Corp (SLM)

CAPS Rating:
**

A holding company that operates through a number of subsidiaries. The Company's primary business is to originate and hold student loans by providing funding, delivery and servicing support for education loans in the United States.

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Avatar TMFBuck (90.70) Submitted: 4/18/08 2:21 PM : Outperform Start Price: $17.41 SLM Score: -21.43

The prices of attending school are increasing much faster than the rate of inflation. Student lenders are being forced out of business due to the credit crisis. The federally subsidized loans are no longer as profitable and there's no one who wants to buy these securitized student loans. That's all bad news for sure but there's a silver lining. SLM will survive and when this all shakes out the large demand/supply imbalance coupled with their scale advantages to servicing these loans (11,000 employees strong) will make them a very compelling buy. Expect their chunk of the very profitable private lending market to grow handsomely.

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Avatar IBleedConcrete (98.71) Submitted: 4/26/08 8:59 PM

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Obviously their increased market share would be great news if they were making money on new loans. But instead it will just mean bigger losses.

http://edlabor.house.gov/micro/loansact.shtml

Even with the House bill giving Sallie Mae emergency financing the last point seems to suggest that it won't be below market rates. Also how can you trust SLM's accounting when quarter after quarter they report strong core earnings but brutal supposedly "one-time" charges.

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Avatar worCkciN (56.43) Submitted: 5/06/08 1:49 PM

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Timely pick Buck!

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