My assumptions are quite reasonable Next year (2011) EPS to grow 10% which is roughly $10 a share in earnings.
Give them a conservative PE ratio of 11 (seems low based on their outstandng long term track record).
So here is the easy math: $10 EPS x 11 PE = $110
then add $20 a share that they have on the balance sheet and you get $130 a share. This is not a "trade" this is an investment...but while you wait for appreciation you will collect a nice dividend early in 2011!