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Technology Stocks : Paychex (PAYX) -- Ignore unavailable to you. Want to Upgrade?

To: John A. Snell who wrote (114)	10/15/1998 3:30:00 PM
From: Beltropolis Boy	Respond to of 210

chexy featured as motley fool's daily double. funny, no mention of it as their worst short ever (circa mar 95). ----- Thursday, October 15, 1998 HOW DID IT DOUBLE? Paychex sure knows how to make money. The growing payroll specialist has been a beneficiary of the times. In an economic climate that is favoring new businesses with cheap financing rates and where buoyant consumer confidence is keeping them afloat, Paychex has been there to serve as the resident beancounter. With an array of services that most entrepreneurs would rather outsource than do themselves, Paychex has grown its client base past 300,000 as well as its top and bottom lines. Even in the middle of what some may perceive as a significant distraction, the fact that founder and CEO Tom Golisano is running for New York's governorship, shareholders know just where to punch in -- it's Payday! BUSINESS DESCRIPTION Paychex engages in the preparation of payroll checks, which includes internal accounting and payroll tax returns for small and medium-sized companies. The company also provides human resource services, including administering employee benefits like 401(k) plans and workers' compensation. In May the company enacted a 3-for-2 stock split. FINANCIAL FACTS Income Statement 12-month sales: $1056 million 12-month income: $110.5 million 12-month EPS: $0.67 Profit Margin: 10.5% Market Cap: $7426.8 million Balance Sheet Cash: $49.5 million Current Assets: $1461.1 million Current Liabilities: $1168.9 million Long-term Debt: $5.1 million Ratios Price-to-earnings: 67 Price-to-sales: 7 HOW COULD YOU HAVE FOUND THIS DOUBLE? Paychex has been bringing home the bacon for years. Over the last five years the company has delivered consistent sales and earnings growth in the 35% per year range. That rare kind of sustainability of such a lofty growth rate deserves a market premium. However, a year ago the shares were merely trading at the year-ahead earnings multiple. Quality companies like Microsoft and Coca-Cola simply can't be bought at those multiples. Paychex was and is quality. Testimonials are plenty and growing, even if we here at The Motley Fool have gone with archrival Automatic Data Processing (NYSE: AUD). It was a kind of blue chip irony (ironic in that this multi-billion dollar company caters to the red chips of the world) that landed Paychex into the S&P 500 this month, replacing Dresser Industries. The day the company was inducted into the prestigious S&P 500 index it hiked its dividend by 50%. The yield is meager by most standards, less than 1%, but that is still a decent-sized chunk of corporate earnings and a show of confidence now that it has popped up onto the buy lists of index mutual funds everywhere. WHERE TO FROM HERE? Governor Golisano? Don't hold your breath. Despite a bona-fide platform backed by $20 million in contributions and the fact that being an entrepreneurial beancounter sounds like the perfect resume to run the state of New York, it probably won't happen. If Governor George Pataki does not win re-election, the defeat probably won't come from Golisano's Independence Party. In the meantime, one has to wonder if Paychex is distracted. Apparently not. For the August quarter the company showed enough margin improvement to produce another quarter of 36% earnings growth despite a slowdown in revenue growth of just 23%. While doubling from here appears rather unlikely in the near term, it is hard to argue with Paychex's success over the long term. And in the short term, a breather is more than understandable. The S&P index fund buying has already taken place and now the company is back to where it was -- a quality name yet again, but one that might have mysterious downticks if a wave of index fund redemptions take place. That is why those interested should probably consider the shareholder friendly Dividend Reinvestment Plan. Paychex charges no maintenance or brokerage fees like many other DRPs do. And with the stock approaching a P/E of 70, spreading out entry points in a DRP program might be for the best -- like those weekly paychecks the company churns out. -Rick Aristotle Munarriz (tmfedible@aol.com) fool.com

To: John A. Snell who wrote (114)	10/26/1998 4:33:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 210

keeping up with the 'competition.' ADP To Offer Internet Payroll Service 10/26/98 1:26 p.m. ET By Marianne Kolbasuk McGee, InformationWeek Automated Data Processing will unveil this week Internet-based payroll services for its more than 120,000 small-business clients. The service represents the first of several Internet-based payroll initiatives ADP plans to roll out over the next year for customers of all sizes. The new EasyPayNet service will let small-business customers with one to 100 employees send their payroll information to ADP over the Internet. In the past, those customers either faxed or phoned in that information at a prescribed time. EasyPayNet will also let ADP clients access their payroll information online, rather than waiting for printed reports to be faxed or mailed by ADP, in Roseland, N.J. ADP enlisted Internet solutions systems integrator Inventa to create the EasyPayNet website and front end, while ADP's own IT staff integrated the systems with its legacy systems. ADP is in the process of upgrading its network to T1 lines in an effort to handle the Internet traffic. IBM Global Services is providing Internet hosting services to ADP. The EasyPayNet services are being piloted with ADP small-business customers in the New York area. The services will be offered nationwide to small business next spring, Villar said. ADP said it estimates about 40 percent of those customers have computers that are equipped to send payroll information via the Internet. The company said it estimates that by 2003, the percentage will jump to 60 percent. Pricing has not yet been determined.

To: John A. Snell who wrote (114)	3/3/1999 11:12:00 PM
From: Beltropolis Boy	Respond to of 210

U.S. OPTIONS/Paychex vols rise, puts well bid Wednesday March 3, 6:31 pm Eastern Time CHICAGO, March 3 (Reuters) - Puts on Paychex Inc. (Nasdaq:PAYX) were well bid on Wednesday as the underlying stock sank to its lowest price in six months. The stock, which has lost about a quarter of its value since the beginning of the year, was down 1-11/16 to 38-9/16 at 1332 CST/1932 GMT. More than 1,400 puts traded by mid-afternoon, while just 266 calls traded hands on the Philadelphia Stock Exchange. ''Puts were active yesterday too. I don't know if it's because people think bad news is coming or if it's just because the stock made a new low,'' said Larry McMillan, president of options advisory group McMillan Analysis. ''But at this point, it's probably better to just short the stock than to buy the puts because the (downward) move has been so slow and choppy,'' he added. Implied volatility, a key factor in determining options prices, rose to around 72 percent for the March 40 contract from an average of around 47 percent, Paul Foster, investment strategist and editor of 1010WallStreet.com, noted. On the Chicago Board Options Exchange (CBOE), traders noted what appeared to be a rollover involving the January 40 LEAPS that expire in January 2000 and the April 40 calls on Bell Atlantic Corp. (NYSE:BEL - news). Michael Schwartz, chief options strategist with CIBC Oppenheimer, reckoned that the trade was probably rolling a covered write or long position out of the April calls and into the LEAP. The January 200 LEAPS and the April 40 calls, each registering more than 12,900 contracts, were by far the most actively traded options contracts on the day.