You know - i was watching this guy today and it usually has a good alpha, but didn't move at all today. Now I know why.... "First Marblehead has added a news release to its Investor Relations website. Title: First Marblehead Announces Expected Revenues on Its Largest Private Student Loan Securitization Ever Date: 9/26/2006 4:40:20 PM" Damnit! It will gap and run tomorrow because of the short interest on it.... congrats to my fellow longs....
i wonder if the wall st. brain-trust will suck it up and upgrade FMD...? so many are already neg on it....
First Marblehead Hits New 52-Week High © 2006 The Associated Press NEW YORK â Shares of First Marblehead Corp., which helps lenders sell bonds backed by pools of student loans, jumped to a new 52-week high Wednesday after the company announced it expects to raise its highest-ever fees from a September bond offering. Late Tuesday, First Marblehead said it expects to receive structural advisory fees of about $173.3 million from the securitization of about $1.84 billion in asset-backed securities in a deal with the National Collegiate Student Loan Trust. First Marblehead also estimates residual revenue of about $53 million, or 3.8 percent of the loan balance securitized. The fees of 17.5 percent of the pool were higher than most analysts anticipated, and shares of First Marblehead on Wednesday rose more than 5 percent to a new 52-week high of $71.50 in intraday trading on the New York Stock Exchange. The shares previously traded in a range of $20.89 and $66.96 in the past year. Analysts said the fees were higher than they expected because First Marblehead structured the deal to collect higher fees up front instead of waiting for residual income. Also, student loans are paying higher yields relative to low-risk investments, analysts said.
if this thing settles down today - im looking for a pop in the next week. recent uptrend + today's hammer ==
I got in this stock earlier this year at around 36 and ended up selling it for 45. At the time it sure looked like it was a good time to take profits.
snap! gap up tomorrow. 30% of the float is _still_ short and we're at a 52wk high. i will take personal pleasure in causing the short-squeeze that is ahead.....