No. of Recommendations: 2
If you are interested in HUDL, it is helpful to look into Catapult Group in Australia. The share price has moved from $1 to $6 fairly recently. AU:CAT
https://bigcharts.marketwatch.com/quickchart/quick...I like Nelnet management and I like their conservative accounting. The Allo common stock ownership was steadily marked down to zero on the balance sheet and they recently announced a transaction where Nelnet received $410m cash, recognizing a pre-tax gain of $175m (there was preferred stock involved), and will retain 26% ownership of Allo (still carried at zero).
Hudl has not, to my knowledge, had an "observable transaction" that would update its holding value in some time. Nelnet has increased their ownership but that is not an "observable transaction" since it doesn't involve a mark by an unaffiliated third party investing at a new valuation (like Bain for instance).
I don't have a number as high as $10 Billion penciled in for Hudl, but it is certainly worth more than it is carried on Nelnet's books at.
The last several years of Nelnet's involvement in the student loan servicing business was a nightmare - with constantly changing rules, requirements to staff up followed by delays in needing the staff and constant back and forth from the government. Then the floodgates open and the phone lines are jammed at a time the government cut the level of funding for customer service and the upset servicing clients are predictable. It will remain a mess for some time.
The chairman is from a very prominent banking family in Nebraska. I believe his sister runs the family bank their Dad ran. Dunlap is the name.
https://www.ubt.com/learning-center/blogs/remember...One thing I like about Nelnet management is that they are very honest when they screw up and explain what happened and why. That goes a long way to earning trust when it comes to shareholder communications.
