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    <title>Jordan Arnolds's Comments</title>
    <description>Jordan Arnolds's Comments RSS Syndication from SeekingAlpha.com</description>
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      <title>Express Scripts: Growth And Value Joined At The Hip</title>
      <link>http://seekingalpha.com/article/1056901/comments?source=feed#comment-13510301</link>
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        <![CDATA[The ROE I cited comes from the average reported by Valueline. I do not use SeekingAlpha for stock research that much and cannot find where it lists that, but my assumption would be that a figure of 4.9% is based off of last quarters earnings report - not a historical average. The former P/E of 29.6 was abnormally high and I believe the lower forward P/E represents more of an overreaction to an abnormally bad quarter than a permanent expectation of little or no growth. I agree that Express Scripts' growth will slow from its previous levels, but I don't think it will be low enough to warrant a P/E in the 15 range. The ratio of debt/equity is about 70% and Express Scripts has an earnings interest cover of about 10 times. The debt levels were incurred by acquisitions and are sufficiently covered by cash flows. I don't know where you got your figure for free cash flow, but the sources I have, Morningstar, Valueline, Yahoo Finance, all report free cash flow as positive. Morningstar has TTM cash flow as positive 186 million, Valueline has 2012 cash flow as $3.95 per share, and Yahoo has operating and leveraged cash flows TTM as 2.58B and 3.95B respectively. I would not expect there to be a dividend in a company that is engaged in acquisitions and a growth category - the money would be more useful to shareholders put back into the business than distributed.]]>
      </content>
      <pubDate>Wed, 09 Jan 2013 17:29:53 -0500</pubDate>
      <description>
        <![CDATA[The ROE I cited comes from the average reported by Valueline. I do not use SeekingAlpha for stock research that much and cannot find where it lists that, but my assumption would be that a figure of 4.9% is based off of last quarters earnings report - not a historical average. The former P/E of 29.6 was abnormally high and I believe the lower forward P/E represents more of an overreaction to an abnormally bad quarter than a permanent expectation of little or no growth. I agree that Express Scripts' growth will slow from its previous levels, but I don't think it will be low enough to warrant a P/E in the 15 range. The ratio of debt/equity is about 70% and Express Scripts has an earnings interest cover of about 10 times. The debt levels were incurred by acquisitions and are sufficiently covered by cash flows. I don't know where you got your figure for free cash flow, but the sources I have, Morningstar, Valueline, Yahoo Finance, all report free cash flow as positive. Morningstar has TTM cash flow as positive 186 million, Valueline has 2012 cash flow as $3.95 per share, and Yahoo has operating and leveraged cash flows TTM as 2.58B and 3.95B respectively. I would not expect there to be a dividend in a company that is engaged in acquisitions and a growth category - the money would be more useful to shareholders put back into the business than distributed.]]>
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    <item>
      <title>Express Scripts: Growth And Value Joined At The Hip</title>
      <link>http://seekingalpha.com/article/1056901/comments?source=feed#comment-12494261</link>
      <guid isPermaLink="false">12494261</guid>
      <content>
        <![CDATA[I am not currently adding to  my position because I don't have any cash to do so, but I could see myself doing so in the near future by either purchasing more shares or long term out of the money calls]]>
      </content>
      <pubDate>Tue, 11 Dec 2012 16:02:21 -0500</pubDate>
      <description>
        <![CDATA[I am not currently adding to  my position because I don't have any cash to do so, but I could see myself doing so in the near future by either purchasing more shares or long term out of the money calls]]>
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