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No. of Recommendations: 2
Pitney Bowes, new low today of 3.19. They were over 8.00 in December and over 14.00
a year before that.

Market hates them, mail business shrinking and all that. But they do make money. Target EPS
from valueline is .95 in 2019 and 1.10 in 2020. VL's 3-5 year price target is between
8.00 and 13.00.

On the business side, they purchased a company called Newgistics in 2017 which
looks to be a bet on e-commerce. I don't know the ins and outs of that industry but
there will likely be more packages (and less US mail) sent each year from here on out
for quite some time.

Also, I do note that management cut the dividend to increase share buybacks...sensible as a
response to the drop in price. (But do to the drop in price it now yields over 6%)

One thing I'm lukewarm on is their increasing business loan division. I agree with the statement
that lots of small businesses have a hard time getting loans but there seems to be a good
degree of risk there and I wonder if PBI has an advantage or is just crawling into a mine field.
I also have a hard time separating the additional debt fo fund that with the debt from ops.

Anyone else have thoughts here? Unless they swing to losses or have funding risk it seems hard to
fail buying at an estimated 2020 PE of 3.
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