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Strategies & Market Trends : Value Investing

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From: gcrispin	8/21/2007 7:41:12 AM
	Read Replies (1) of 78744

I bought WU and MGI yesterday. The two companies produce a tremendous amount of cash flow and have low cap ex expenses. Combined they only comprise twenty percent of the market, so I expect further consolidation in the industry. MGI has a agreement to have sites in WalMart stores. The following article describes the the unrecognized economies they serve. biz.yahoo.com Both companies are buying back stock. MGI bought back 2.2 million shares last year and has bought back 8000000 this year as of June 30. MGI does have some sub-prime exposure in their bond portfolio. In their presentation, it looks like a fraction of their portfolio, but who really knows these days. Despite that, I bought because I thought their PEs are reasonable and the trend they serve will continue.

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