Liberty Tax (TAX: $34/share) has carved out a successful niche as the discount option for tax return preparation. Despite its significantly smaller scale and brand awareness compared to competitors such as H&R Block (HRB) and Intuit (INTU), TAX still earns a comparable return on invested capital (ROIC). The beauty here is that the market values TAX at a considerable discount to HRB and INTU.
Our first step to gauge the value of a company is to determine the true, after-tax cash flows generated by its operations. We call this Net Operating Profit After Tax (NOPAT).
Investors deserve an alternative to subjective and backward-looking ratings. They deserve analysis of a fund’s holdings, not just its past performance. Investors deserve real diligence, because diligence pays.
Jana Partners filed a document with the SEC on Monday claiming to have received anonymous information that PetSmart (PETM) has been attempting to hide poor results from investors.