SLM deal in big trouble
The subsidy cuts were larger than expected, the debt markets are tightening up and now a director has sold a lot of shares at $51. That's obviously not a strong vote of confidence for a deal getting done at $60, or even $55.
posted by Never-Limp at 8:24 AM
5 Comments:
so why is FMD getting sold off every day?
i'm looking to get in once it stops going down
because the markets have been weak, especially the financial stocks.....they have been the worst performing sector this year b/c of the housing/mortgage mess and credit worries. The misperceptions surrounding FMD continue to persist b/c the sell side analysts and reporters (Barron's) that cover it are generally clueless as I've pointed out in the past. What I can't tell you is exactly when the sentiment will change. Perhaps it will be when the SLM deal officially falls through, but maybe not. It might just get a short-term pop and then play dead again until evidence mounts that the residuals are coming through like management expects.
There are now worries that the securitization markets are in trouble and that the company might not be able to sell or get very good terms on their BBB tranch. That doesn't seem very likely since they are not subprime securities, but BBB spreads certainly widened a lot last week.
guess who bought at 34 like a genuis...maybel i'll be lucky and get to avg down at 30 tomorrow
also watch CCRT kill numbers tonight since everyone i know is out of it
Nah, I bet CCRT lowers numbers.
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