HRB, in tax preparation business, was traded at $32 last week. It was the 2 years low. Given the following facts, you tell me whether you will buy the stock:
1. It finished the year with an earning of about $1.7
2. It declared its more than 32 years' continuous divident of $0.32 for the quarter. Its yield is about 4%
3. It is holding 80% of Compuserv. The management is going to distribute it to its shareholders within the year. It could worth $25 per HRB share at the time of distribution.
4.The company sees its growth potential at more 10% annual rate by expanding overseas and in high end tax preparation and consulting business.
5. It was reported in Fortune Magazine as a take-over tarket. The taking-over price is about $45.
6. 78% of shares are held by the institutional investors. You will be much smarter than those big guys when you buy because they bought it at much higher price.
Michael Wan |
