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.


Player Avatar 20Punches (51.34) Submitted: 2/5/2013 11:17:01 AM : Outperform Start Price: $13.77 WU Score: -6.26

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


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


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