The Western Union Company (NYSE:WU)

CAPS Rating: 4 out of 5

The Company deals in money transfer, providing people with fast, reliable and convenient ways to send money around the world, pay bills and purchase money orders.

Recs

4
Player Avatar 20Punches (47.76) Submitted: 2/5/2013 11:17:01 AM : Outperform Start Price: $13.98 WU Score: -7.57

Punch #6 - Q1 2013 - WU

WU's business model has come into question due to threats from new technology, but I think WU is more stable than people realize, and this firesale price offers a margin of safety in case that assumption is not as correct as i'm hoping.

WU is a CONSISTENT CASH FOUNTAIN, with very high market share, huge returns on equity, a great dividend, and the capacity for HUGE share buybacks.

Earnings yield is about 14%, and free cash flow yield is about 11%.

I'm a tad late on this one, but I think it'll still pan out just fine. Heads I win, tails I don't lose much.

Also a favorite of Todd Combs, so I wouldn't be surprised to see WU on Berkshire's next 13-F.

Member Avatar TheNimitz (< 20) Submitted: 4/8/2013 10:30:24 PM
Recs: 0

Agreed.

WU is a major part of commerce in the small business world (and private). It has a long life.

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ken
TheNimitz.com

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