First Marblehead - a Value But Not for Light Hearted
I’ve been a big fan of First Marblehead’s (FMD) stock for couple months now, and it looks like an incredible value today, trading somewhere around 7-8 times earnings. Though I have to mention this stock is not for the light hearted, as it has a lot of myths surround it.
Tom Brown, who I am very proud to have as my book endorser, wrote a harsh but wonderful piece today dispelling a lot of myths surrounding FMD. In addition, the company has no debt, 15% of its market cap is in cash and it has been growing earnings 30-50% a year. Its margins will likely compress going forward, thus its growth may decline from its past levels, but it should be in double digits.
Oh, did I mention FMD just raised its dividend to 3% yield?
I am the CEO at Investment Management Associates, which is anything but your average investment firm. (Seriously, take a look.)
I wrote two books on investing, which were published by John Wiley & Sons and have been translated into eight languages. (Even in Polish!)
In a brief moment of senility, Forbes magazine called me “the new Benjamin Graham.” (They must have been impressed by the eloquence of the Polish translation.)
Don't miss new articles
We'll let you know when we publish new articles