Having a hard time not buying HRB

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January 5, 2006

HRB – H&R Block. Reasons to like: PE of 10.83, tax season in front of us, Sales growth of 13%. Their brick and mortar locations are well entrenched by now with the bills being paid for the last 2+ years. These stores are likely to bring in more business this year than all previous years, just based on current customers + whatever other customers they have gained since opening these locations.

The most important aspect is that more people earned money this year than last year and the year before. ie they gotta do their taxes.
They recently settled a class action lawsuit.
They have enough money to cover the debt easily.
Nice returns on equity and the Net Profit margin is pretty good.

My only rub is allocating money to a stock where I can earn 16% or $4 bucks, but might have to wait until April to collect that. I tend to look for nice movers like TRLG instead.