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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (50888)	2/14/2013 1:07:51 AM
From: Steve Felix	Read Replies (1) of 78813

Re: WU - Maybe investors are looking out over six months. Transcrtpt / Company CFO: In 2013, we expect our actions to have the most significant negative impact on our financial results in the first half of the year. Must say that I like that they are planning to buy back more shares while business is hopefully righting problems, instead of many companies that seem to buy at their highs. A 3.5+ percent yield makes it easier for me to wait to see if things play out. 2013 estimate $1.38. 2014 $1.55. Their dividend is up 100%+ since mid 2010 and their payout ratio on the lowered 2013 earnings is 36%. I expect another raise by 2014. From Credit Suisse report dated yesterday: "During the quarter the company bought back $27M shares for $351M, and plans on repurchasing about $400M of stock in 2013. The stock sports a FCF yield of ~9% based on expected 2013 FCF. From their transcript. Yahoo numbers don't reflect this years purchases: During the fourth quarter, we spent $351 million to repurchase approximately 27million shares at an average price of $13.12. In addition, we declared $72 million in dividends, which were paid in December. As of year end, we had 572 million shares outstanding and $394 million remaining in our repurchase authorization, which expires at the end of 2013. As Hikmet mentioned, we expect to return approximately $700 million to shareholders in 2013 through repurchases and dividends, including approximately $400 million of share repurchases. We will remain committed to consistently generating and deploying strong cash flows for our shareholders while also maintaining an investment grade credit rating. We would anticipate continuing to increase the dividend in future years consistent with business performance. Transcript: seekingalpha.com

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