H&R Block, Inc. (NYSE:HRB)

jtclark2760 (< 20) Submitted: 12/31/2010 4:55:22 PM : Start Price: $11.47 HRB Score: +28.14

1. Prices were flat last year vs. previous years. Look for increases to offset loss of revenue to self-prepared returns.2. Loss of RAL products minimized by IRS not providing debt indicator to participating lenders. 3. Increased IRS enforcement likely in the next few years, making professionally prepared returns more attractive. The same goes for health care regulations and reporting requirements.4. Recession has disproportionately affected both the Tax Services and Business Services (RSM McGladrey). The large majority of Block's clients are in a segment of the working population suffering 15-30% unemployment, much larger than the national levels. McGladrey will enjoy increased business due to an improving economy and a more acute need for their services due to, e.g., health care regs as noted above.