Running over the names of the largest gainers on the day, I found Sallie Mae roughly 8% higher on the day. As it turns out, the group seeking to buy the firm said that it is open to renegotiating the deal. After the closing bell yesterday, the group of prospective buyers issued a statement including the revelation that they told representatives of the Sallie Mae board that we are open to discussing a revision of the transaction that reflects this new environment. The group is led by J.C. Flowers and includes J.P. Morgan Chase, Bank of America Corp., and Friedman Fleischer & Lowe. Yesterday, SLM noted that the group had no contractual basis to repudiate its obligations under the agreement and stated that it would pursue all remedies available to get the deal done.
Today's advance seems to have met its match in the form of SLM's 10-week moving average, which has pushed the shares lower since the beginning of July. Should today's news spark any upgrades, we could see the stock advance, and upgrades are a definite possibility. According to Zacks, SLM receives 2 strong buy ratings, 7 holds, and 1 strong sell. Of course, SLM is a financial firm, and it is subject to the recent market turmoil.