The Western Union Company (NYSE:WU)

A total cherry-pick from the man that nailed Mastercard in the mid 40's, Pat Dorsey of Morningstar.

Well positioned to capitalize on immigrant needs to wire money securely and wih confidence out of US. Great brand recognition and doesn't require disclosure of information that opening a bank account would require.

possible take over of either wells fargo or b of a.

WU generates significant cash flow from its money transfer business. The company has the most recognizable brand name in the money transfer industry as well as the largest network of branches. WU's scale presents significant barriers for competitors as existing customers are unlikely to switch to a competitor offering fewer pick-up/drop-off locations or to rely on an unknown operator. The majority of the company's customers are immigrants that send money back to their homeland. Given my belief that immigrants will continue to flock to America (either legally or illegally) and will likely want to share any newfound gains with their loved ones at home, I believe WU will continue to generate substantial amounts of cash while expanding. With fears of immigration reform abounding, I believe shares of WU are trading at a discount. Long-term investors should take the opportunity to buy shares in a solid company with bright prospects.

Buffet recently bought some.

A trusted company that dominates it's corner or the world economy. If you have been to Iraq and seen the ridiculous lines at WU after payday. The Indian food service workers are lined up wiring their money home. Warren Buffet also has a position in this company. Need say more.
http://biz.yahoo.com/seekingalpha/061107/20092_id.html?.v=1

As long as there are immigrants from poor countries to richer countries this company will do well. Very good P/E ratio. Leader in the industry.

Western Union currently enjoys a wide moat, as it has the largest network of agents for cash transfer and other services.

Expect sales increases to occur both because of increasing agent count and because of increase in traffic with existing agents.

WU enjoys terrific profit margins that should expand through 2008. This should be a nice "steady Eddie" play--a world class company at a good price.

this company is like toilet paper, everyone uses it.

WU, recently spun off from First Data, has a powerful network effect and a strong, trusted brand which provides a wide moat near impossible to replicate. It is five times larger than its nearest competitor (MoneyGram Int'l) and is expanding its network of agents by about 15% per year. WU is very profitable, charging high fees for money transfer. (That people keep paying is an indication of the loyalty of WU's customer base).

The exisitence of WU is made possible by economic disparity between rich and poor countries - migrant workers send money from the former (where they work) to the latter. Living in Hong Kong, I can see how popular WU is with migrant workers from SE Asian countries. There are some issues with Mexican immigrants in the US, but WU's business is global and becoming more so as global migration increases.

At 17x earnings, the price is attractive. High debt load after the spin-off and low projected income growth in 2007 have depressed the price. Warren Buffet owns 10 million shares.

Remittance business growing.

High Margins. Competitive advantage is the size of their network and reputation for reliable transmission

great stock with dirt cheap price

Wide Moat

Bright business model they dominate their niche market with further room for growth, Now WU will benefit more from becoming an independent company.
I think that in a short time this cash generating machine will attract more attention from investors.

Great growth company, big competitive advantage over its smaller rivals. Great margins, great cash flow

Immigration will continue to increase.This is will be a significant jump in business for a long standing business.Legal or illegal the moneys earned still get sent home.

It's already up 20% since I got in at $19.97. Short term I expect to see volatility but long term this one is going to outperform. Market leader, wide moat, free cash generator and a growing network effect.

Durable competitive advantage that's been around for a loooong time.