Player Avatar Gordogato (79.96) Submitted: 9/10/2012 2:47:02 PM : Outperform Start Price: $17.79 WU Score: -66.67

Western Union is profitable and pays a small dividend, though their stock price has gone nowhere lately. Sooner or later, the market will take notice. Good margins, return on assets, and cash flow. Twice the amount of debt as cash on the balance sheet, which is a concern, but profits and cash flow make me less worried about this debt. I sometimes worry that Western Union could be left in the dust if internet-based, international money transfers become easy and a disruptor company moves into this space. But WU's moat is its worldwide network of physical branches. Rich, western nations might try to move towards a cashless society, but worldwide, the need to convert electronic money into physical currency is not going away anytime soon, and neither is Western Union.

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