Sallie Mae
SLM
position
long
Lee Cooperman
Thesis
Sallie Mae has a strong asset quality with 81% of loans guaranteed by the U.S. government. The stock is trading at $13, which is half of its market multiple, and the company is expected to earn $1.80 this year, with a target price of $20 per share.
Did it work?
worked
confidence: high
The stock price increased by 111.3%, significantly exceeding the target price of $20 per share. Given that the thesis highlighted strong asset quality and an undervalued stock, the substantial price appreciation aligns with the long position taken. This indicates that the thesis played out successfully.
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