HRB, $32, 2 years low, great buy now Message Board

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Technology Stocks : HRB, $32, 2 years low, great buy now

HRB 49.76

-1.9%

Oct 31 3:59 PM EST

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To: John E. Stanga who wrote (37)	6/18/1997 12:32:00 PM
From: Mike 2.0	of 86

Unfortunately it appears HRB has spilled the punch bowl. Q4 earnings came in at $1.90 vs. 2.02 analyst estimate. CSRV lost (.13)/sh vs. (.09) analyst estimate, but I also I honed in on this piece of press release which left me most displeased: >>H&R Block Tax Services, Inc. maintained its momentum from the previous fiscal year with an 11.6 percent increase in pretax earnings to $204.3 million. Revenues increased 20.9 percent to $906 million, although the pretax margin fell to 22.5 percent from 24.4 percent in 1996. "While we're pleased with Tax Services' revenue growth, our margins slipped due to increases in three areas: bad debt associated with electronic filing; marketing expenses targeted at gaining new customers; and costs connected with the implementation of a now, computerized bookkeeping and management reporting system," Salizzoni said.<< Any thoughts on a bottom here. Dropped ball on tax business has me wondering about taking gains now. Mike

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