First Marblehead Shares Fall After 4Q Loss
DES MOINES, Iowa (AP) ¿ Shares of First Marblehead Corp. fell Tuesday after the company reported a fiscal fourth-quarter loss, and an analyst expressed concern over future loan losses.
The Boston-based company, which packages student loans for sale to investors, reported a net loss for the quarter of $36.1 million, or 36 cents a share, compared with a loss of $56.7 million, or 57 cents per share, in the year-ago period.
FBR Capital Markets analyst Matt Snowling reiterated his "Market Perform" rating and set a share price target of $2.50.
He said there is long-term value in the company's loan platform, but First Marblehead is expected to take further losses on loans held at the bank while using up cash until it can access the financial markets."As a result, we remain neutral on (First Marblehead) shares and see limited upside from current levels," he wrote in a note to investors. He said the company posted positive revenue for the first time in seven quarters, but much of the improvement was driven by lower write-downs on advisory fees and other interests rather than new business. Shares fell 11 cents, or 5 percent, to $2.14 in morning trading. The stock has ranged from 58 cents to $5.14 over the past year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV