Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (50888)	2/14/2013 1:07:51 AM
From: Steve Felix	Read Replies (1) \| Respond to of 78796

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

To: Jurgis Bekepuris who wrote (50888)	2/14/2013 12:35:31 PM
From: Paul Senior	Read Replies (4) \| Respond to of 78796

Partially OT: Thanks - appreciate your opinion on this. I believe you may be right. Perhaps best if I do not adjust my views to stretch to look for new buys. Have been considering instead, just adding to positions in which I already hold shares, where I believe I see value, but where my position size is comfortably small. Maybe move more out of my comfort zone in this way. In past, I've found being comfortable has led to less than desirable performance. Otoh, I'm old - older and slower anyway , and don't want to again experience a 2008. So being comfortable now seems to have become more important. I'm continuing to add now or have added last couple days to: NICK (low p/e, okay roe, general growth in stated bv) GTE (Although you reported selling, I'll go with brokerage top buy recommendations and guys on other SI boards who like it and follow it closely (more closely than I have been.) WHF (bdc, newly public, with annualized distribution $1.42 on the ~$14.95 stock) HXM (apparently cheap Mexican home builder) MIND (I like equipment lessors that can grow stated bv. Cash exceeds ltd. Company had a bad last quarter.) ART (may be cheap based on aum) DRI (A stretch buy. Intending to add if/as as the stock falls. A 4%+ yield while holding for this Olive Garden chain) Still only adding small amounts though.