I agree. This 9X PE multiple / 1.4X revenue multiple situation is bogus and the broken business model argument has zero factual support or evidence in tangible performance. Zero. Given where WU trades, you'd think WU were shrinking and losing money. WU is stable at $1 B in profits and cash generation at 20% margins. Know a lot of companies with that profile - at all, much less trading at 9X?! Once it completes the transitional changes, WU will resume superior growth - it's inevitable. There are no clouds, only an in-progress plan that's clearly working.
B2B, digital growth, cost savings, pricing action driving transaction growth, absolutely everywhere you look the foundation is being laid. I'm long WU because I literally can't identify another stock where the upside is so certain and the downside risk so rock-solidly supported. (I can identify other stocks with bigger upsides, but not on a risk-adjusted basis).
I joked with a friend recently that even in a crash, WU might be less downside risky than the index because the index can't buy back its own shares. Even a crash won't affect WU, its customers generally don't own stocks.
Index trades at 18X and LTHA is about 14X. You'd think WU at least could get to 12X ($20) even under current conditions.
Those who are not on board the $WU 2013-2014 appreciation should dump their shares now. No need for them to hold on anymore. They do not deserve $17-$18/ shr in MAY. let them sell, plenty of buyers who want it cheaper but just can't get it now.