Paul Harris, CFAWestern Union Co.WUBUYApr 12, 2007

He would avoid this. It is a stock that always looks cheap and attractive from a near term financial point of view, but his concern is on longer-term risks on money transfers. A very difficult, long term business with all of the new technology.

Generates a lot of free cash flow. A growing dividend and a low PE. This is a money transfer business, and Wal-Mart (WMT-N) is offering money transfers in their stores, but there is really no comparison. Very attractive, but not his favourite idea.

(A Top Pick March 27/13. Up 14.34%.) A global leader in the money transfer business. Sold his holdings in October. A good business still going forward and a little bit undervalued at these levels. Raised their dividend this year by 20%.

Always has cheap valuations because people compare it to a buggy whip manufacturer and that it will be obliterated by new forms of technology. Their clients are a great number of people who do not have banking services so there will always be a need for this company. Feels there is some value in this one.

(A Top Pick March 27/13. Up 4.76%.)

A global franchise which allows you to send money. Typically it is often used by new citizens in a country where they want to mail money back home. An intriguing story because it has a relatively low multiple and a high free cash flow but has proven to be a difficult place to be as a stock. He is concerned with the sustainability of its margins. When they lowered their earnings guidance last fall, and missed their earnings by a small amount, the stock dropped 30%. That risk profile is too high for him.

Massive free cash flow generator and a global leader in money transfer services. Had a big earnings miss in November and the stock dropped. Inexpensive at only 9X earnings. Dividend yield of 3.4% that should be increased every year. Buying back stock.

Taking a hard look at this. On his radar screens. Took a sickening fall a few months ago when they said they were charging way too much for the money transfers and were losing market share. Now they are right in line with the competitors. A lot of competition, which is the big risk. Valuation is cheap. Nice dividend. Wouldn’t be too concerned about the balance sheet because they don’t need a lot of cash to run the business.

(A Top Pick Sept 7/11. Down 17.48%.) A great way to move money around globally. Had a disappointing quarter. Still happy with their current operations and he is adding to their position.