Dynamic Programming Presenters: Michal Karpinski Eric Hoffstetter.
2/19/2013 Ryan Lumb Rob Karpinski
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Transcript of 2/19/2013 Ryan Lumb Rob Karpinski
2/19/2013Ryan Lumb
Rob Karpinski
Dividend Growth
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$0.35
Dividend
Dividend Growth
0.00%
1.00%
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7.00%
8.00%
9.00%
Dividend Yield
Share Buyback
• $750 Million share buyback authorization• If fully employed, FY 2012 EPS of
$1.75 would have essentially equaled $1.98• Given the same multiple, this
would equate to a $16.75 share price• 17% non-performance related
upside potential
Insider Buying
Network Affect
“The classic example is the telephone. The more people own telephones, the more valuable the telephone is to each owner.”
Market Dominance“For every McDonald's restaurant, there are more than 15 Western Union vendors. Additionally, Western Union processes about four times the transactions of its closest competitor”
- Brendan Mathews
Brand Recognition
Valuation
Valuation
Strategy
• Market Dominance Strategy
• Monitor Points• Significant Loss in Market Share• Margins diminish greatly (Ex. 28% under 10%)• Any Decrease to Dividend