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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dan Meleney who wrote (37261)	4/5/2010 12:07:07 AM
From: Leibnitz	Respond to of 78749

Richard Breeden is key here. He's the former SEC chairman who became a big investor in HRB, got himself elected chairman of HRB's Board, and started to clean house in late 2007. Breeden's reputation is on the line and I really don't think he's one to allow the company to not set aside enough reserves for losses. He was also very aggressive in getting the company to sell their ancillary businesses and the crappy loans that went with them. Breeden is a LOT different from the prior management that screwed up HRB in the first place. I'm not worried about anything huge or unexpected in their loan portfolio.

To: Dan Meleney who wrote (37261)	4/5/2010 6:16:13 AM
From: Neil H	Respond to of 78749

A piece from a Barrons Article this week - Well-respected value investor Bill Nygren thinks stocks are still cheap. Two favorites: Liberty Media and H&R Block Another of Nygren's misunderstood stocks is H&R Block (HRB). Wall Street thinks its tax outlets have lost customers to TurboTax, but the people who use the online system never went to professional preparers in the first place, he asserts. Rather, he believes H&R Block has been hurt by the weak economy because more people either don't file -- because their income is too low -- or because they can't pay the taxes. (H&R estimates IRS filings are down about 5% through Feb. 28.) As the economy recovers, people will start filing again. Taking splits into account, his cost basis is about 10. The stock trades at 17.80. Analysts estimate 2010 earnings at $1.42 and 2011 at $1.59.