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Nelnet, Inc. Message Board

  • fredmahnke fredmahnke Aug 21, 2010 4:33 PM Flag

    NNI -my largest short position

    NNI has had a great week settling a lawsuit with the federal govt and receiving a brokerage upgrade. However NNI is a melting icecube with the feds announced plan to take over the student loan business. NNI also faces longstanding technical resistence around $22 and premium over SLM (its most direct competitor) is at a unusually high level.

    Despite the strong PE, I see NNI a value trap given
    the fact that it is now selling for around 175% Tangible book, a multible resevered for the best run commerical banks, which of course, are ongoing businesses. Additionally, I see NNI as susceptible to rising interst rate.

    So go ahead a sell NNI, the insiders are sure doing alot of it

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    • Short NNI. Gotta be one of the stupidest things I have ever heard.

      Their cash flow is enormus at over $250 million a year. Ever ask yourself what they will do with that money.. New high in a bad market. Go ahead dunny short away.

    • How's that short position working out for ya?

    • It is so nice when someone down on a stock takes the time to educate the uniformed current stock holders. Bless you "fredmahnke".

      Investopedia, The Street and others seem to disagree with you. They list NNI as an opportunistic buy. The market seems to disagree with you but what do active traders know and that purchase of 143,000 shares near the days high earlier this week....oh if they had just read your posting first....oh how they must feel today! Oh wait, based on todays price they've made $ 150,000 in two days. Don't you just hate it when that happens.

      Insider trading?? One major holder has sold less than 2%. Simple diversification.

      In any case it's good to have your posting, let's check back in November and February.

    • am_er_i_can_capitalist am_er_i_can_capitalist Aug 23, 2010 10:04 PM Flag

      "The Department of Education has always hired outside firms to service direct loans and will continue to do so after July 1. Some of these servicers are the same companies that originate student loans, such as Sallie Mae and Nelnet."
      March 15, 2010 SF Chronicle
      ... Sorry, but you may need a little more dd in making your investment decisions. Nelnet will continue to service these loans for the government and is not being replaced. Rising interest rate environment would be a concern, but I believe our interest rates will stay low for some time to come, similar to Japan for the last 19 years. Good luck with your short, but I'm not making that bet.

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