Winter is coming for H&R Block stock (symbol: HRB). Their entire business model is charging people to file simple tax returns, but now people suddenly have easy ways to file their taxes for free. Heard of CreditKarma? They do free tax returns now. H&R Block is on the fast track to complete obsolescence. Stock at $21.41, you’ll see it below $15 this year. Remember Eastman Kodak stock dropping 99.5% because the world moved on from chemical film? It's that sort of thing, you'll see.
Good call on the election, RM. Unfortunately. And I couldn't agree with you more on your assessment of Trump (and those who voted for him).
Since nobody is giving you props on this call, I will. Market has been ripping higher and this stock has drifted lower. I think tax reform is what is really going to do this stock in. Whether or not it happens this year doesn't matter. It's getting discounted from the future cash flows. Sooner or later when this market corrects, this stock will hit your target pretty easily. The target seems kind of mild to me actually. Anyway, good call so far at least on the relative value performance!
Mav, I also wanted to comment on the same but didn't want to draw too much attention . Since you have started I will follow, thanks for this one RM looking great thus far .
@Rearden Metal you know I love your shit, but damn $15 from $21.41? I gotta feed the kids, the mistress, the drug dealers, foreign states, give a guy a bone here!