Did anyone read the financial statement released in the earnings announcement? Did anyone
notice big decline in the shareholders equity and total assets from FY07 to FY08? The financial condition of this firm is not as strong as it was made to look. PAYX is increasing the divi, but, in reality, shareholders are losing equity here. FY09 is not going to be pretty despite 2-4% profit growth projection. They will likely to cut the forecast again.
Oh, OK. So the company spent $1 Billion to buy back stocks at higher prices than what it is at now. I suppose that makes shareholders happy. What will they do now? They should borrow money to buy back more shares, I you ask me. One good thing about PAYX is that they don't have debt. Maybe it's time to borrow some money and buy back shares.