Asshole analyst comes out with a statement that may or may not be true. It is now trading near liquidation value based on balance sheet numbers.
It's all about Senator Dodd right now pumping the loans. Still needs a company news driven event that is substantial to keep the dream alive!
http://www.businessweek.com/ap/financialnews/D90284HO0.htm http://money.cnn.com/news/newsfeeds/articles/djf500/200804151156DOWJONESDJONLINE000536_FORTUNE5.htm
The fix is in. Student loan demand far outweighs supply, and pressure will build by next month. Congress is going to take the path of least resistance and either insure the loans, or allow them to be pledged as assets with their backing (same effect). http://www.bloomberg.com/apps/news?pid=20601087&sid=aHiMNFIjh8Ak&refer=home Loan Demand `Outstrips Supply,' SLM's Remondi Says (Update1) By Christopher Stern April 15 (Bloomberg) -- The shortage of student loans will become increasingly evident as demand builds next month, John Remondi, chief financial officer of SLM Corp., told a U.S. Senate committee today. ``For the current academic year lending season, we are facing a scenario where demand for student loans will significantly outstrip supply,'' Remondi said in testimony to be delivered today to the Senate Banking Committee. ``The gap between available loans and the demand for them could manifest itself as early as May.'' The panel is considering the effect of the credit crunch on the student loan market. At least 50 lenders have ceased writing some form of student loans as the cost of raising money in the asset-backed market has skyrocketed. Senator Christopher Dodd, the panel chairman, said today that ``the withdrawal of these lenders, the ongoing turmoil in U.S. credit markets and the illiquidity in the student loan market have fueled concerns that a potential student loan credit crunch may be looming.'' Credit Markets Democrats have introduced several proposals to help college students borrow money as credit markets tighten. Senator Edward Kennedy, a Massachusetts Democrat, proposed raising loan limits for students. Representative George Miller, a California Democrat and chairman of the House Education and Labor Committee, would authorize the U.S. Education Department to buy loans from companies that need capital to lend more money to students. Pressures from a global credit crunch have hurt the student loan providers. Last month, Moody's Investors Service downgraded its rating for SLM, known as Sallie Mae, the largest U.S. education lender, citing a decline in federal subsidies for student loans and an aborted buyout of the company. Last month, the Education Resources Institute Inc., a lender that says it is the largest nonprofit provider of student loans, filed for bankruptcy. CIT Group Inc. and NorthStar Education Finance Inc. have said they will stop making new loans to U.S. students because lending costs have soared.