I think the AH drop (is there?) may be the result of the results and forcast not reaching the high end estimates, though they were solidly on the averages. One the other hand, the call seems to be going well. I like the company. The client base they are building is unprecidented. No company has ever captured the college market like this.
Everyone appears to be missing the significant investment risk associated with H1. They have run under the radar until recently. Read the USPRIG report as well as their recent Federal legal settlements. H1 stepped into an area that they thought was akin to commercial banking; however, dealing with Title IV funds, poor kids and related regulations can turn a predictable consumer business model upside-down. It is not going to get better for H1 P&L regardless of how they reshape their programs. Too much of their revenue is tied to ATMs and other penalties (~70%), excluding CashNet revenue. This does not play well with lawmakers or the US Department of Education. Durbin & Reed have already begun congressional inquiry.