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

To: Jurgis Bekepuris who wrote (50806)	2/7/2013 11:59:27 AM
From: AFed	Read Replies (2) \| Respond to of 78715

MHP: I appreciate your comments Jurgis. I've never used GuruFocus before so thanks for the link. Two subjects: 10% FCF Growth 1. What is the datasource for GuruFocus? I went through the historical MHP filings and could not match many of the historical numbers to GuruFocus.... that is, I am getting to a better FCF growth from the filings than indicated by GuruFocus. 2. Until today, MHP was comprised of a low FCF / low ROIC Education business and a high FCF / high ROIC Financials business. This clouds the Consolidated MHP business financials laid out on the GuruFocus page. 3. I don't want to totally ignore the Global Financial Crisis, but for a business that is inherently levered to well-lubricated Financial Markets (Ratings Biz = more issuance volume, more fees; Indices Biz = fees as % of AUM; Capital IQ Biz = more financial analysts seats filled, more subscription fees), they've been "under-earning" normalized FCF growth between 2009-2011. Reasonable minds can disagree here though, so I wouldn't hold it against someone if they think they're not under-earning. Settlement $'s 1. You can't dock them 2x for the Settlements. I'm including the illustrative $5bn in the TEV, so I am accounting for it. 2. If you want to take it out of near-term earnings, that's fine, but I would argue that those near-term earnings do not represent MHP's true earnings power.