2/19/2013 Ryan Lumb Rob Karpinski
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Transcript of 2/19/2013 Ryan Lumb Rob Karpinski
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2/19/2013Ryan Lumb
Rob Karpinski
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Dividend Growth
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
Dividend
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Dividend Growth
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
Dividend Yield
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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
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Insider Buying
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Network Affect
“The classic example is the telephone. The more people own telephones, the more valuable the telephone is to each owner.”
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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
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Brand Recognition
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Valuation
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Valuation
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Strategy
• Market Dominance Strategy
• Monitor Points• Significant Loss in Market Share• Margins diminish greatly (Ex. 28% under 10%)• Any Decrease to Dividend