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Author: pcapete Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 461  
Subject: Conference Call Worries Date: 12/17/2007 6:50 PM
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I am very worried about H&R Block, the company has a lot of exposure to subprime and mortgages due to them owning Option One - OOMC. They said in their conference call today they couldn't sell Commercial Paper either, and admitted they got a mortgage on their headquarter building. Isn't taking a mortgage a little desperate?

Anyone done some analysis on Option One and how much risk it posses to H&R Block.

Thanks in Advance,
Peter
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Author: RayKinsella Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 453 of 461
Subject: Re: Conference Call Worries Date: 12/18/2007 4:55 PM
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Do you really want to own this company?


Maybe. I mean you can't tell a lot from that picture other than what the stock did under Ernst's leadership, which no longer applies. I like to buy low and sell high, so if I'm bullish on the company, there's no better time to buy than now.
Ray

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Author: pcapete Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 455 of 461
Subject: Re: Conference Call Worries Date: 12/19/2007 7:22 PM
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Ray, why would you be bulish, they've orignated and hold a lot of subprime and alt-A loans. Etrade sold theirs for 27 cents on the dollar. Aren't you worried about that exposure?

Also on the conference call they mentioned they mortgaged their headquarters. That makes me nervous because they have maxed out their credit lines, and they have a big debt payment due tomorrow.

I think I'm going to sell my shares tomorrow. I just have trouble sleeping with this stock. It's not worth the risk in my opinion.

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Author: RayKinsella Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 456 of 461
Subject: Re: Conference Call Worries Date: 12/19/2007 9:59 PM
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I'm not necessarily bullish, but I do want to make the argument that in light of the management change, past performance is not indicative of the future. The chart the original poster linked to is not necessarily relevant. I've been out of this company for about two years, but if Breeden is the guy, there is no better time to buy than at some point during this tax season, before he starts to turn it around.
Ray

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