Big Day for First Marblehead

By | September 15, 2006

Wow! I have to admit, when I wrote my piece on First Marblehead (FMD) late last night, the stock was at $52.35, and while I expected it to go up today, it has blown past my most optimistic guess of where it would go. As I write this, the stock has just passed through 60, up over 15%.

I still am bullish on the company , but in the short term, caution is probably in order. The stock is likely to have a significant move once the deal closes and final numbers are in, and while I believe it will be to the upside, given today’s gains, short term expectations may be too high. That said, I expect to add to my position on any pullback.

Disclosure: I hold a position in FMD

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