Editor's Note:
This financial stock is bouncing from prior resistance following the recent breakout from a multi-month consolidation.



SLM Corp. - SLM - close: 12.39 change: +0.05

Stop Loss: 11.75
Target(s): 13.75
Current Option Gain/Loss: +0.00%
Time Frame: 6 to 8 weeks
New Positions: Yes

Company Description:
SLM Corporation (NYSE:SLM - News), commonly known as Sallie Mae, is the nation’s leading saving, planning and paying for education company. Sallie Mae’s saving programs, planning resources and financing options have helped more than 31 million people make the investment in higher education. The company services $202 billion in education loans and serves 10 million student and parent customers. Its affiliate Upromise Investments, Inc., manages $27 billion in 529 college savings plans, and members of Upromise by Sallie Mae have earned more than $575 million in rewards to help pay for college. Sallie Mae offers services to a range of institutional clients, including colleges and universities, student loan guarantors and state and federal agencies. (source: company press release or website)

Why We Like It:
It looks like the worst is behind it for SLM. The private student loan market probably isn't "healthy" but it's getting better. Investor sentiment on the financial sector has changed to bullish recently. SLM broke out from a multi-month consolidation and now traders are buying the dip near previous resistance. I am suggesting we take advantage of this dip and buy SLM stock now, at current levels. We'll use a stop loss at $11.75. Our first target is $13.75.

Suggested Position: Buy SLM stock @ current levels
- or -
BUY the 2011 January $12.50 call option (symbol:SLM1122A12.5) current ask $0.73

Annotated chart:

Entry on November 11 at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on November 10th, 2010