It is either going to $25+ or get bought out. Valuation is on the extremely low side anywhere near $16 per share.
Its strange to me --it seems this is how it all works: 1) Hedge funds / private equity decides to target small cap companies levered to 1 or few products as shorts. 2) Find a few analysts to get on the payroll. Even possibly bribe the channel's participants to choose one product over another (ie pay the supply chain manager at MOT to just put BRCM on a prelim project sheet instead of SIGM's product) 3) Short away until analysts get you to your price target, or 0, depending on how successful bribery in #2 is.
Just to play devils advocate but why would the gov't want to back a private lender like FMD? I'm surprised SLM didn't get much juice or bounce today. This is just another dead cat bounce with no follow through otherwise.
Students can only borrow a maximum of 23k from the Federal Government through Sallie Mae for their entire college tuition costs. Hence the need for private lenders such as BankofAmerica or FMD. Congress is either going to have to back the debt for private lenders, or many students will not be able to attend college this fall.
Govt won't back FMD directly It'll back bigger parties like SLM and TERI (being non-profit gives more reason to help it) which will trickle to FMD.
True, those aspiring doctors and lawyers in Boston area need to get raped at those 40k a year schools and take at loans and be stuck 100k+ when they get out.
Tried to buy June 7.5 calls this morning when FMD was at its lows-- haven't been filled.. Should've just bought the stock outright...
So why not just increase the limits like they did with housing, isn't that the simplest solution? Because it is you can pretty much count on it not being the one they go with