SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Brendan W who wrote (22709)12/4/2005 8:48:10 AM
From: blankmind  Read Replies (1) of 78507
 
- Brendan - on your list - i’d give HRB another look:

- H&R Block is projecting 2006 earnings of $1.90 to $2.15 - they pay $.25/share dividend or about 2% yield on the $25.26 stock - multiple parts to this company - per confer call & last earnings announcment - they’re trying to increase profits, grow new business lines, hold down costs, etc... sounds like they’re achieving growth in certain lines w/out profits - for instance - they now have 985 fin’l advisors & cut their qtrly loss to $8 mill in that line of business - during qtr - HRB repurch 4.6 mill shs @ avg. price of $27.98 - that’s over 1% of the 326.1 mill shs o/s diluted - but its part of a larger stock buyback program

- H&R Block has a huge following of people who use their tax services - both walk-in & TaxCut for PCs - they’re in Sears, Walmart, etc... both co-owned & franchised stores - & then they convert many of these filers into customers of their other investment & mortgage svcs - & they’re applying for a bank licensee - they’re growing their RSM McGladrey public accounting franchise - & if you know anything about Sarbanes Oxley - this division should continue doing nicely for the forseeable future - per confer call - they’re planning on opening 1,000 new points of presence in 2006 - that’s a lot of expansion costs weighing down profits now - also attempting to reduce orig costs by 50 basis points - also - for full-yr 2004 - deprec & amortiz was $183.9 mill - & they have over $1 bill in goodwill alone - so these non-cash charges will weigh on earnings but will allow H&R Block to continue their buyback, dividend, & increase equity - provided overall profits are maintained - HRB currently @ $25.26 - good luck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News