FMD Analysis: First MarbleHead Corporation

One stock idea I am looking at right now is First MarbleHead Corporation (NYSE:FMD). I will update this page with a more in-depth FMD Analysis later.

For now, you can use my quick review to decide if FMD warrants further investment research.

Sound good?

FMD Analysis: Dollars for Cents

When analyzing FMD, the first thing that becomes obvious is the fact that FMD common stock is trading for cents on the dollars. The company has about $192M in cash, but the market cap is only $134.86M. That’s a valuation discrepancy I can get behind.

That’s not the end of the FMD fundamental analysis though. There’s more. While FMD has fallen off of it’s 2007 highs, management might finally be getting control. They’ve cut costs, and managed to turn cash flow positive the last three quarters. Sales and marketing initiatives are also being implemented and may yield increased revenue.

FMD Technical Analysis: Trending Up To Resistance

When you look at the chart of FMD, a few things become clear…

  • FMD has been in an uptrend since January 2013. Since this time it has moved up 100% off the lows.
  • The recent advance has been populated with big buy volume indicating buyers of size may have been accumulating just under $1.00/share.
  • FMD has traded up to resistance at around $1.10-$1.30. It is consolidating against this prior resistance level. There seems to be a firm bid below $1.20 and large selling above $1.27 – it’s a battle ground.
  • The 50, 100 and 200 day moving averages are sloping up on the daily time frame.
  • On the weekly time frame, the 20 period moving average has crossed over the 50 period moving average. The 200 period moving average has more or less flattened out around $1.70.

I like the 200 period MA on the weekly timeframe at $1.70. This also presents

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