- Nelnet is considered a student loan play, and while that may be true, the true asymmetry in the risk-return profile comes from its technological divisions.
- Nelnet Business Services division is responsible for 20.40% of revenue, but is valued at $56.85 - $82.43 a share.
- Nelnet is so deeply integrated into its client's operations that makes their services 'sticky'.
- I argue that the Nelnet Business Services division, which accounts for 20.4% of total revenue, is undervalued and can cause Nelnet’s stock price to double.
For further details see:
Nelnet: A Hidden Technology Gem