Higher One Holdings ( ONE) Company Profile: Higher One offers integrated financial aid disbursement services for universities. The company provides services to about 5.8 million students, ensuring they receive financial aid refunds quickly, can pay tuition and bills online, make on-campus and community purchases. Share Price: $19.99 (Dec. 6) 2011 Return: -1.2% Investment Thesis: William Blair analysts say they like Higher One because the company has an attractive, predictable business model with high incremental margins and solid cash flow conversion. It also helps that management recently said that the company's pipeline "remains extremely robust." "We believe there could be upside down the road from the company increasingly being viewed as a true bank alternative (e.g., more direct deposit), through acquisitions, by monetizing the graduate opportunity, and as a takeover candidate," the analysts write. However, there is high short interest in Higher One's stock -- William Blair analysts say it would take about 30 days to cover. That's due to a number of unresolved headwinds, including competition, fees, potential cuts in Pell grants, slowing enrollment growth in the U.S. and a bank partner. While finding a bank partner is the biggest question market, William Blair analysts say that a positive announcement, which could come in the next three months, would be a huge catalyst, especially considering the massive short interest.