FMD just published its earning report for last year and last quarter, the
performance is outstanding, "First Marblehead Announces Full Year and Fourth Quarter Fiscal 2007 Results: Net Income Up 57% and Earnings Per Share Up 60% for the Year". p/e is low, peg is even lower, while you wait for market to recover, you get 2.9% divident to reward your waiting. In its earnings call, FMD's management is bullish on its future. Student loan is a total different beast from housing loans, but FMD is down along with the whole loan mess. This is the rare chance a long term invester is seeking for making a fortune. Here is an article giving better reasoning than my own wording:
http://financial.seekingalpha.com/article/43980
The financial guru, bankstock.com's Tom Brown has increased its holding on FMD in its most recent quarterly report.
People make money in stock market when they buy undervalued, good quality stocks, especially growth stocks with big market potential.
There maybe a good chance that FMD's stock may tank in September. FMD may decide not to sell BBB rated loan in the secondary market because of bad market condition at that time, it will not be a fatal defeat, it is something minor, if it do tank, that would be a rare chance to get rich quickly. It may not tank at all.
Just some rambling on the current market and FMD, I see a lot of good buying opportunities, but my hands are tied, can not do much.