SLM drop a bit excessive?

FirefighterB said: "You guys think the 9% loss is merited? The latest news is that the CEO dumped 400k shares, but that was last week. Perhaps he knew of the impending news of the policy change and decided to enjoy some money while the gettin's good. Would this bring about any legal issues? If not, worth grabbing while it's down?"

Harry said: "[QUOTE=FirefighterB]You guys think the 9% loss is merited? The latest news is that the CEO dumped 400k shares, but that was last week. Perhaps he knew of the impending news of the policy change and decided to enjoy some money while the gettin's good. Would this bring about any legal issues? If not, worth grabbing while it's down?[/QUOTE] First of all First Marblehead Corp. (FMD) has always been best of breed in that category. Secondly, [quote]bizjournals.com Sallie Mae blasts Bush budget cuts Monday February 5, 5:07 pm ET Stock in SLM Corp. posted its biggest one-day decline in more than six years Monday after President Bush's 2008 budget proposal was released. The president's budget for fiscal 2008, which begins in October, would reduce loan reimbursement rates and other subsidies to student-loan lenders such as Reston-based Sallie Mae.[/quote] ...might be a sector ofn the down-swing. Counter the move...buy DEFENSE!"

FirefighterB said: "Thanks for the look at FMD, Harry. I agree that the policy change isn't helping, but I don't think student loans aren't going anywhere. The decline in government coverage also very minimal, down from 97% to 95% of their total loans. With more and more kids going to college, entrance and federal aid loan requirements tightening, and the costs ever increasing, I question a decline in their business. But, I always wonder if I'm missing something (usually the RATHER LARGE neon sign) and I appreciate all your thoughts."