Continue reading Closing Bell: DOW, NASDAQ, and S&P up, however massive run leaves some in dust

Closing Bell: DOW, NASDAQ, and S&P up, however massive run leaves some in dust originally appeared on BloggingStocks on Fri, 19 Sep 2008 16:02:00 EST. Please see our terms for use of feeds.

Reuters reports that First Marblehead Corporation (NYSE: FMD) -- a student loan securitizer -- is in deep yogurt and the stock market is not happy, knocking 42% out of its stock. The reason? The Education Resources Institute Inc (TERI), which claims to be the largest not-for-profit guarantor of U.S. private education loans, filed Monday for Chapter 11 bankruptcy protection. Thanks to borrower defaults and credit market problems, its liquidity was "damaged."

People have asked me what would be the next shoe to drop after subprime. The $85 billion student loan market is one where the supposed alchemy of securitization is turning lead into toxic waste rather than gold. Securitization was supposed to eliminate the risk of loss by bundling enough good loans with bad ones so the security would offer attractive returns. While the securitizers got big fees, the losses are turning out to be larger than expected.

Continue reading First Marblehead down 42% -- are student loans the new subprime?

First Marblehead down 42% -- are student loans the new subprime? originally appeared on BloggingStocks on Tue, 08 Apr 2008 10:10:00 EST. Please see our terms for use of feeds.

We keep coming close to losing these companies that are fighting for their lives.

Yesterday we had First Marblehead (NYSE: FMD) (Cramer's Take) on student loans.

Is CIT (NYSE: CIT) (Cramer's Take) next with its student loan portfolio (as opposed to its mobile home portfolio and its subprime portfolio...sheesh!)?

We obviously had a giant problem with MBIA (NYSE: MBI) (Cramer's Take) over the amount of capital it needs to raise. Will it have to raise capital and cut the dividend?

Continue reading Cramer on BloggingStocks: More lenders on life support

Cramer on BloggingStocks: More lenders on life support originally appeared on BloggingStocks on Thu, 06 Dec 2007 09:00:00 EST. Please see our terms for use of feeds.

Yahoo (NASDAQ: YHOO) volatility elevated as YHOO trades near 36-month low. YHOO, however, is recently up $0.81 to $23.54 following positive analyst comments. Bear Stearns says "there are several catalysts that could drive YHOO's shares, including: 1) success from branding initiatives, 2) good results from Panama, 3) takeover / strategic partnership talks, 4) the Alibaba IPO, and 5) a material share repurchase." YHOO overall option implied volatility of 38 is above its 26-week average of 35 according to Track Data, suggesting larger movement.

First Marblehead (NYSE: FMD) volatility was low prior to announcing Subpoena from NY AG. FMD, a provider of outsourcing services for private and non-governmental education lending, closed at $40.70. FMD announced on 8/31/07 it received a subpoena on 8/22/07 from the New York Attorney General's investigation of lending, educational, and nonprofit institutions. FBRC say's "facing wider spreads, downsizing-reiterating underperform." FMD over all option implied volatility of 41 is below its 26-week average of 45 according to Track Data, suggesting decreasing price movements.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: YHOO near 36-month low into Jerry Yang's first 100 days originally appeared on BloggingStocks on Tue, 04 Sep 2007 10:13:00 EST. Please see our terms for use of feeds.

Netflix Inc (NASDAQ: NFLX)

This week's rumor round-up: Will Amazon overpay for Netflix? originally appeared on BloggingStocks on Fri, 08 Jun 2007 15:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank believes upside remains on Xilinx Inc's (NASDQ: XLNX) margins and tax rates, initiating shares with a Buy rating and $38 target.

• JP Morgan waits for improved new unit volumes and better earnings visibility before getting more constructive on Red Robin Gourmet Burgers Inc (NASDAQ: RRGB) and initiated shares with a Neutral rating.

• Given the lack of catalysts to improve margins above their peers, JP Morgan doesn't expect multiple expansions from Ingram Micro (NYSE: IM) in the near-term, assuming shares with a Neutral rating.

• Deutsche Bank expects Silicon Labratories (NASDAQ:: SLAB) multiples to expand with operating margins, starting shares with a Buy rating and $40 target.

• Needham believes Comtech Group Inc (NASDAQ: COGO) is uniquely leveraged to benefit from the growth of manufacturing in China and started shares with a Buy rating and $21 target...

• Deutsche Bank initiated shares of Marvell Technology Group (NASDAQ: MRVL) with a Buy rating.

• Citigroup started GTx, Inc (NASDAQ: GTXI) with a Buy rating.

• Pacific Growth started Itron, Inc (NASDAQ: ITRI) with a Buy rating.

• First Marblehead Corp (NYSE: FMD) was initiated with a Hold rating and $38 target at Sandler.

• UBS started Kaiser Aluminum Corp (NASDAQ: KALU) with a Buy rating and $100 target.

Analyst initiations 5-10-07: COGO, IM, MRVL, RRGB and XLNX originally appeared on BloggingStocks on Thu, 10 May 2007 11:22:00 EST. Please see our terms for use of feeds.