We have completed the sale of Paychex from the portfolio at an average price of $43 per share. Although we still find the company’s business model attractive, the company’s stock price began to sharply exceed our estimate of fair value based on the company’s fundamentals and our realistic future growth prospects. Perhaps the market is … Read more
Paychex reported quarterly earnings yesterday after the close. Upon review of the company’s 8-K filing with the SEC, we remain very comfortable with the company’s fundamentals and its ability to cope with a difficult operating environment. The main headwinds facing the company include tepid employment growth and historically low interest rates. Lack of employment growth … Read more
There is little question that the “Great Recession” has challenged Paychex over the past few years. With a weak employment market and a difficult small-business operating environment, there has been little improvement in the firm’s operations. However, we believe that information has already been discounted by the market and is reflected in the company”s current … Read more