SLM (SLM) NewsBite - SLM Surges on Student Loan Plan

Posted on Friday, May 02, 2008 10:53 AM

SLM Corp. (SLM) opened at 20.95. So far today, the stock has hit a low of 20.62 and a high of 21.58. SLM is now trading at 20.86, up 0.88 (4.20%). The stock hit its 52 week high of 58.00 in July and set its 52 week low of 14.70 in March. SLM has been dropping for the past year. Shares of student loan providers have been soaring after the House of Representatives approved a new student loan stabilization plan. The president Bush stated that, by granting the Department of Education greater authority to purchase Federal student loans, students' worries about their ability to finance their education should ease. Technical indicators for the stock are neutral and improving while S&P gives SLM a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a July bull-put credit spread below the $15 range. SLM stock could fall up to 28.1% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]