David Zanoni
Momentum, growth at reasonable price, long-term horizon

Nelnet: An Investment To Hedge Increasing Education Costs

Many investors are familiar with the educational loan provider SLM Corporation (aka Sallie Mae) (NASDAQ:SLM), but most are less familiar with its smaller competitor. Nelnet (NYSE:NNI) is a small-cap education services company that offers student loans, tuition payment processing, enrollment services, campus commerce, and asset generation & management. Nelnet stands to benefit from rising tuition rates and increasing college enrollment rates over the next several years. Investors in Nelnet should benefit from higher stock prices as the company's earnings are positively correlated to the rising tuition and enrollment rates. The investment can be considered as a hedge against rising tuition rates for parents of students or for students themselves. Overall, Nelnet looks like a likely investment...

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