Will First Marblehead (FMD) Survive?

Here's a stock (FMD) that had amazing fundamentals. It had a 7 year history of high Return on Equity, low debt, and increasing sales and earnings every year. It's in the student securitization business and because of the financial crisis, this stock has gone from of $41 to a low of $1.65. My average price was $20 :(

Currently it's trading back up to $4.51 because of the cash infusion from Goldman Sachs of $132 million (preferred shares) and also the return of it's co-founder Dan Meyers who resigned after the firm discovered that he had exchanged gifts worth $32,000 with one of the firm's key clients.-Stock Article Link

Its book value is around $6 but it's losing every quarter. According to Warren Buffett, invest in a business "with favorable long term prospects" and their will always be a need for student loans but this company is currently at the mercy of the economy. -Bullish Stock Article Link