First Marblehead (FMD)

HenryTo · Posted: Fri Feb 17, 2006 1:04 am Post subject: First Marblehead (FMD)

Interesting take on FMD from Bankstocks.com. I haven't kept track of it since it tanked in October:

http://www.bankstocks.com/article.asp?type=1&id=9880853

rffrydr · Posted: Sun Apr 15, 2007 8:03 am Post subject:

Marblehead now well up to its neck in scandal:

http://www.nytimes.com/2007/04/15/education/15direct.html?hp

Is this a buying opportunity or will they go the way of subprime--die and be reinvented?
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Tue Apr 10, 2007 8:05 pm Post subject:

Down 3% today; after defying the Barron's article. Housing may be showing some resilence but subprime keeps on giving--and crawling up the credit chain. Or maybe it's just the resets.
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Sat Apr 07, 2007 9:52 pm Post subject:

Yeah, Brown has some solid points (I thought I'd posted his rejoinder). Foremost among them is the "lifer" aspect of a student loan default. It comes with the full force and judgement of the Feds--and will follow you til death. BK does nothing for you. If that doesn't pull Mom and Dad over to your side I don't know what will.

The tone is a bit vitriolic though. Methinks he doth protest too much. The issues are only now coming to bear (check out the front pages last week on USC)--particularly with the defaults. The "special nature" of these loans Brown talks about, the "jobless graduation, can work as much against his side. We won't know about the delayed payments until some time, whether it's employment or the doubling of payback rates. I feel confident that the numbers guys like Browne won't be on top of it should defaults come to pass.

Barrons is right in stating this stock is a focal point for the subprime "spillover" effect, dividing bulls and bears sharply. Browne's tone proves that part in spades.

I was very much interested in this puppy at the start; bought 15K of RMH last week so I want to be bullish on this stuff--but I'm giving Barrons the nod.
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Today is the Tomorrow you worried about Yesterday!

HenryTo · Posted: Sat Apr 07, 2007 8:37 pm Post subject:

Here is Tom Brown's take on it. I haven't checked out the latest 10-K or 10-Q so I can't comment but it looks like Barron's may have flunked out this time. A must-read:

http://www.bankstocks.com/article.asp?type=1&id=9881345

rffrydr · Posted: Sat Apr 07, 2007 1:35 pm Post subject:

Full Barron's story mentioned in our Subprime post. Interesting stock in it's own right, tieing parents to overspending children in a period of racing educational inflation--as well and 70% intermediary margins and unfolding scandalous connections to Financial Aid Depts.

More interesting is the link to subprime woes on setbacks on current tranche payments. When dad can't do it there must be a mortgage in the background. Stock has held up well even after this article though:

http://www.smartmoney.com/barrons/index.cfm?story=20070403
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Today is the Tomorrow you worried about Yesterday!