Use access key #2 to skip to page content.
  • S&P 500: 1,070.52
  • Change: 1.30%
$10.72 0.34 (3.28%)
2/9/2010 4:01 PM

SLM Corp (SLM)

CAPS Rating:
***

A holding company that operates through a number of subsidiaries. The Company's primary business is to originate and hold student loans by providing funding, delivery and servicing support for education loans in the United States.

X

Rating a stock in CAPS consists of three components:

Your call - Will this stock outperform or underperform the S&P 500? Successful picks are measured in terms of whether or not you were correct and by how many percentage points.

Your time frame - A guideline for other members to see whether your thinking is short or long-term. Time frame is also used to calculate the stock rating, but is not used in the scoring of your pick.

Your pitch - Here's your chance to offer more detailed thoughts, analysis, concerns, or the rationale behind your call. The pitch is optional and may be added later.

Each time you rate a stock, CAPS updates the community intelligence for the company, which may or may not change its CAPS rating. For more information, visit the Help tab at the top of the page.

You aren't currently rating SLM

Add Stock to Watchlist

What the Community Thinks

Total Members

404 Outperforms
91 Underperforms
 

All-Stars

142 Outperforms
32 Underperforms
 

Wall Street

11 Outperforms
2 Underperforms
 

Members bullish on SLM are also bullish on:

Members bearish on SLM are also bearish on:

Ticker Tags

Financials (1255), Consumer Finance (40), Mid Cap (610), S&P 500 (499), Cyclical (3415), Distressed (1597)
Suggest a tag

SLM Corp At A Glance

Current Price: $10.72
Last Trade Time: 2/9/2010 4:01 PM
Open: $0.00
Previous Close: $10.38
Daily Range: $10.50 - $10.79
52-Week Range: $3.11 - $12.89
Volume: 4,008,852
Market Cap: $5.09B
P/E Ratio: 14.62
Compare Our Special Broker Offers!

Stock Trends

SLM VS S&P 500 (SPY)

News & Discussion Boards

Top Bull Pitch

Recs

1

SLM Corp (SLM)

Avatar clwilson728 (< 20) Submitted: 9/17/08 4:52 PM

They are a victim of a bad government policy and back lash from the credit crunch. However, they are a solid company, a leader in their industry and solid backing. Many companies are running from the student load market and it will only make them stronger.

Replies: 1 | Reply | Permalink

Top Bear Pitch

Recs

1

SLM Corp (SLM)

Avatar Ewok82 (30.43) Submitted: 10/11/09 3:53 AM

Students graduating without jobs and their parents trying to recover from the financial hit of 2008. Fat chance collecting loan repayments.

Replies: 0 | Reply | Permalink

CAPS Members

picks per page. CHANGE

Results 1 - 5 of 71 :   1 2 3 4 5 Next » Jump to page:

Recs

0

 (SLM)

Avatar NinjaJew (< 20) Submitted: 12/02/09 2:22 PM : Outperform Start Price: $4.64 SLM Score: 102.38

It's ridiculous to imagine that the government can bear the burden in between what scholarships/grants/federal loans provide and what college ACTUALLY COSTS. The development of education reform on a scale that would completely wipe out private loans would take nearly the time/energy that health care reform, and we know how well that's going/gone. The demand for private loans will only increase from here out; it's the risk that fluctuates.

Sallie Mae has excellent customer service and flexible payments--when my income was unstable they worked with me until I was back on my feet again--all without one late/missed payment.

In tough times they've cut back their overeager loaning practices to a far more manageable level, and they will be better off for it. Anything higher than $60K in private loans for a kid with a BA fresh out of college will soon send him straight to the poor house, and there's no profit in that.

Sallie Mae has challenges ahead and some investment risks, but at $11/share I still find it a bargain.

Report this Post Replies: 0 | Reply | Permalink

Recs

0

 (SLM)

Avatar RDI2009 (39.04) Submitted: 10/22/09 10:33 AM : Outperform Start Price: $10.93 SLM Score: -1.14

The Case for Sallie Mae

Over the past two years, Sallie Mae (aka SLM Corp) has fallen from nearly $50 a share to about $10 a share. The reasons for the decline are two-fold. First, the recent credit crisis called into question if the highly leveraged business model of borrowing money to make student loans and then selling those loans to institutional investors would remain viable. Second, many have wondered if the administration’s plans for student loan lending would put an end to Sallie.

With the credit ice jam finally beginning to thaw and break, the question of access to reasonable credit to fund the business model appears to have been answered. Thus the remaining question is how the administration’s policies might affect the business in the future.

I am optimistic about Sallie’s future. Sallie Mae has had close connections to Washington politics since it was first created in the 60’s. Though the original GSE was wound down nearly five years ago, Sallie’s influence in Washington remains strong such that I believe that though there may be tweaks to the model, Sallie will still come out with a profitable method to leverage federally sponsored student loan programs.

For those in doubt, consider this: Sallie Mae employs approximately 8,000 people, the majority of whom are concentrated in Virginia, Pennsylvania, New York, and Indiana. Of the eight senators representing those states, seven are democrats, including such influence wielding power brokers as Arlen Specter, Chuck Schumer, and George Allen. It seems unlikely to me that these lawmakers would issue a death sentence for a business so important to their states. Furthermore, the administration is quickly spending its political capital on higher profile issues such as healthcare reform, the war in Afghanistan, green policies, etc., such that the attention on student loan lending will be much subdued in the future. If republicans increase their numbers in congress in the next election cycle (which I think is quite likely), this will favor Sallie even more.

As far as the current business model, Sallie Mae could not be in a better position. People out of work are going back to school and funding their education (and living costs) through student loans. May I remind you that federally sponsored student loans are guaranteed by the government up to 98% of the loan value, so the question of if lending to unemployed students makes sense is a mute point. If a federal student loan goes bad, Sallie Mae sells it at nearly full price back to the federal government, and the federal government pays Sallie to continue servicing the loan! If the borrower begins to make payments on the loan and becomes profitable again, Sallie buys the loan back from the government.

In the end, I think Sallie will be around for a long while, and at $11/share, it still looks like a bargain to me.

Report this Post Replies: 0 | Reply | Permalink

Recs

1

 (SLM)

Avatar Ewok82 (30.43) Submitted: 10/11/09 3:53 AM : Underperform Start Price: $9.03 SLM Score: -19.22

Students graduating without jobs and their parents trying to recover from the financial hit of 2008. Fat chance collecting loan repayments.

Report this Post Replies: 0 | Reply | Permalink

Recs

1

 (SLM)

Avatar DarthMaul09 (33.46) Submitted: 10/11/09 3:49 AM : Underperform Start Price: $9.03 SLM Score: -19.22

The government will bail out student and their parents. After SLM folds, the government will take over writing student loans.

Report this Post Replies: 0 | Reply | Permalink

Recs

1

 (SLM)

Avatar uclayoda87 (30.52) Submitted: 10/11/09 3:46 AM : Underperform Start Price: $9.03 SLM Score: -19.22

The government will bail out students by allowing them to declare bankruptcy and defaulting on their loans. The government will then take over new student loans and kill whatever is left of their business.

Report this Post Replies: 0 | Reply | Permalink

Results 1 - 5 of 71 :   1 2 3 4 5 Next » Jump to page:

Wall Street

Results 1 - 13 of 13  

picks per page. CHANGE Expand All Pitches

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackJimCramer < 20 01/21/10 Underperform 3W $11.81-9.23%-4.01%+5.22
TrackZacks 62.21 01/05/10 Outperform 3M $11.69-8.30%-5.64%-2.66 Toggle the visibility of 60-Second Pitch and replies
TrackJPMorgan 84.76 06/25/09 Outperform NS $8.60+24.65%+20.15%+4.51
TrackEdLampert 96.88 05/26/09 Outperform 1Y $5.75+86.43%+22.63%+63.80 Toggle the visibility of 60-Second Pitch and replies
TrackSOP < 20 06/10/08 Outperform NS $21.81-50.85%-18.05%-32.80
TrackLehmanBros 85.06 05/06/08 Outperform NS $22.33-51.99%-20.64%-31.36
TrackEveillard 93.31 03/31/08 Outperform NS $15.35-30.16%-15.75%-14.42 Toggle the visibility of 60-Second Pitch and replies
TrackFBRCapitalM 79.87 02/13/08 Outperform NS $20.20-46.93%-17.84%-29.09
TrackBRogers 97.70 12/31/07 Outperform NS $20.14-46.77%-23.57%-23.20 Toggle the visibility of 60-Second Pitch and replies
TrackBrandes < 20 12/31/07 Outperform NS $20.14-46.77%-23.57%-23.20 Toggle the visibility of 60-Second Pitch and replies
TrackKBW 57.13 12/13/07 Outperform NS $28.32-62.15%-24.26%-37.89
TrackDodgeCox 90.73 09/30/07 Outperform NS $49.67-78.42%-26.38%-52.04 Toggle the visibility of 60-Second Pitch and replies
TrackMatrix 90.36 03/13/07 Underperform NS $41.48-74.16%-18.81%+55.34

Results 1 - 13 of 13  

X

Beat this Stock

Clicking "Beat this Stock!" will bring you to a company with a higher rating than the one you're currently viewing.

Even though CAPS shows only one- to five-star rankings, behind the scenes, all companies in CAPS have a distinct numerical ranking. In other words, there is a No. 1 stock in CAPS and a worst-ranked stock in CAPS. When you arrive at the top-ranked stock, clicking "Beat this Stock!" will cause the page to refresh.

That is, until there is a new No. 1 stock!

These companies do not represent formal Motley Fool recommendations. Please do your own due diligence before investing. Fool on.

Featured Broker Partners

EQWEBD04 203ms