As value investors who operate with a long investment time horizon, one of the most important characteristics we look for when selecting stocks for our portfolio is a company’s ability to compound its intrinsic value over time. Some companies routinely meet or exceed our cash flow forecasts, steadily grow earnings, and raise their dividends. These companies tend … Read more
There is no other way in stating that Western Union’s third-quarter results were disapointingly weak. Additionally, management expects significantly weaker results over the next several quarters. Mr. Market was not happy, as the company’s stock is down over 25% today. Revenue declined 1% year over year due to particularly weak conditions in Europe and surprisingly … Read more
Western Union represents an attractive investment opportunity. The business model carries minimal business risk and management’s strategy continuously improves its competitive position. We believe the drivers of its historical growth remain in place and expect the company to grow solidly once the economy improves. If the economic recovery is delayed, Western Union offers downside protection … Read more
Western Union reported fourth quarter and full year results on February 3rd to which the market found none too appealing — the company offered tepid guidance for 2010. The stock fell as much as 11% that day, the most in almost 12 months. Since reporting its earnings, the stock has dropped almost 14% and is … Read more
In September 2006, First Data Corporation spun off Western Union as a separate company. To complete the spin off, Western Union paid First Data a $4.1 billion dividend. Western Union used all available cash on its balance sheet in addition to borrowing $3.3 billion to complete the dividend payment to First Data. At the end … Read more