Monday, June 04, 2007

FMD Rumor Mill and Quick Update

First Marblehead (FMD) made a strong move to the upside today. According to a couple sources, it seems that rumors of a Wells Fargo (WFC) buyout are circulating again. The company is not just inexpensive in my view, which quite a few others share... it is downright cheap. I don't know enough about WFC, so I am not sure how well FMD would fit their business, but I would not be surprised if they are currently seriously interested in taking them out based on the current valuation of FMD.

*** Edit #1 ***

I forgot to mention in the above... I picked up a medium-sized trading position in Qiao Xing Mobile Communication (QXM) at $9.02 earlier this morning. I first mentioned the company about a month ago, and at the time, it was trading around $11. With the drop in share price, I think taking a stab at it is worth the risk.

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