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 (51)	7/10/1997 11:37:00 AM
From: Zoltan!	of 86

HRB owns 80% of CompuServe and there is 7/10 of a share of CSRV behind every share of HRB. You could calculate that at today's price CompuServe is worth @$8.40 per HRB share. So you're paying @$27 for next year's earnings of @$2. (I actually believe CSRV is a BIG drag on HRB stock - which should be fairly valued in the mid $50's. Therefore, I think HRB should rise by at least 50% once CSRV is spun off.) HRB is debt free, has 25% margins, and is projected to grow earnings by 15%/yr in the future. Management is also committed to buying back 15% of its shares once CompuServe is severed. Regards

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