Will Pitney Bowes' New Management Stabilize Sales?

About: Pitney Bowes Inc. (PBI), Includes: IBM
by: Saibus Research
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Saibus Research
Long/short equity, Deep Value, value, special situations

Although Pitney Bowes (NYSE:PBI) is struggling to hold on to its sales, we were considering it as an investment based on its (at the time) 10% dividend yield (before its recent dividend cut of 50%) and its free cash flow yield of 16%. Although it is a potential good value, it is struggling due to its streak of revenue declines. In hindsight, we think maybe Pitney Bowes' former CEO Michael Critelli's deal-crazed acquisition spree was not the best thing for the company's health. From 2000-2007, Pitney Bowes spent $2.5B on 83 acquisitions. PB's stock was dead money from 2000-2007 and has deteriorated since then. The good news for us is that it gives us a potential investment opportunity