Obviously the comments regarding these on the last conference call were positive. And these are clearly major upside catalysts for this stock.
It sounds like the strategy is to get their product into as many doors via loan servicing etc (thru Cology/TMS) and then ultimately say "hey did you know we have a lot of experience doing securitizations and originating loans?...would you have an interest in either?". Dan Myers' comments on those two purchases over the past couple of quarters sure makes it sound like these opportunities are opening up. So maybe I shouldn't be counting this stock out just yet?
FMD is a "gem in the rough". It transformed from the financial debacles of '08-'09 into a company that created new (almost) sustaining programs and alliances, with a large pool of cash to do so. Smart! It's new platform, Monogram(c), along with future securitizations will restore it to prominence and provide rewards for shareholders. FMD ( FMC)'s default rate is one of the lowest. No Government backings- good stuff! This is a "value" company.
Anyone else care to weigh in on this? What risks am I missing? The regulatory risks seem pretty manageable. Will these guys be able to return to a profit and compete with SLM etc? Just kind of scared to buy anything right now I guess...
Ms. Jen - there are many arguments regarding this stock. If you scroll through some of the past posts, you will get a sense of what is going on. That said, I am long and can make an argument why this stock has value greater than the current $1.12. I think I understand the myriad risks. In spite of my view on the risks, i just don't understand how this stock seems to be always under selling pressure. Tuesday 6/25 we'll get the new short position.