"It resembles a call option on the student lending industry," Compass Point's Michael Tarkan says, initiating First Marblehead (FMD +0.7%) at Buy with a $2 price target. Tarkan likes the post-crisis comeback narrative, noting that FMD's revenues are now more diversified, its "expenses are improving," and its cash usage is declining. Like SA Pro contributor Jonathan Verenger, Tarkan thinks the company can return to profitability in 2015.
"It resembles a call option on the student lending industry," Compass Point's Michael Tarkan...
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