In such a depressing market, it's difficult to single out one stock that's performing poorly. But student loan company Nelnet Inc. has been hit particularly hard recently, even though some analysts say it's getting a bum rap.

Nebraska-based Nelnet, which has a large servicing center in Jacksonville, dropped sharply a couple of weeks ago after President Barack Obama's budget proposed eliminating subsidies for private student loans. Obama suggests using federal money only for direct government student loans, while using private companies like Nelnet only to service the loans.

Nelnet's stock dropped from $10.74 to $4.91 on Feb. 26 after the budget proposal was released, and it fell as low as $4.02 last week. But analysts generally think the drop was overdone. Four of six analysts covering the company have a "buy" rating on the stock and two rate it as "hold," according to Bloomberg News.

Friedman, Billings, Ramsey analyst Matt Snowling said in a research note last week that "political fears are masking [the] true value" of Nelnet's stock. But he doesn't expect a big upturn.

"Despite reasonably strong core results during the quarter from Nelnet, we expect investors to remain cautious on the stock until the company can demonstrate its ability to access liquidity and later, until details emerge regarding how the government's proposal would compensate FFEL [Federal Family Education Loan] participants to service loans on its behalf," he wrote.

Nelnet last week reported fourth-quarter base earnings (excluding certain charges) of 32 cents a share, compared with 34 cents in the fourth quarter of 2007. For all of 2008, base earnings were $1.65 a share, compared with $1.72 in 2007.

In the earnings news release, Nelnet CEO Mike Dunlap understandably said the company disagrees with Obama's proposal and sees it as "only the beginning" of the budget process.

"We believe Congress will see the value of a student loan program that maintains the benefits of choice and competition and does not contribute significantly to the national debt," he said.

SOFT DEMAND FOR LANDSTAR

Landstar System Inc. CEO Henry Gerkens said last week that the Jacksonville-based trucking company's revenue fell 22 percent in January and 20 percent in February.

"Demand is just very, very soft. There is much too much capacity in the marketplace and downward pressure on price continues," Gerkens said in his mid-quarter conference call with investors.

But Gerkens sees opportunities for his company if the recession forces some trucking firms into bankruptcy.