PBI

Pitney Bowes Inc

Industrial/Transportation


Presented:09/12/2013
Price:$17.14
Cap:$3.46B
Current Price:$6.96
Cap:$1.25B

Presented

Date09/12/2013
Price$17.14
Market Cap$3.46B
Ent Value$6.78B
P/E Ratio13.7x
Book Value$0.38
Div Yield3.2%
Shares O/S201.81M
Ave Daily Vol460,000
Short Int25.74%

Current

Price$6.96
Market Cap$1.25B
Pitney Bowes Inc. provides technology products and solutions in the United States and internationally. The company operates through Small and Medium Business Solutions, Enterprise Business Solutions, and Digital Commerce Solutions segments. The Small and Medium Business Solutions segment is involved in the sale, rental, financing, and servicing of mailing equipment and supplies, software, and postage meters; and provides revolving credit and deposit solutions, and support services. The Enterprise Business Solutions segment offers equipment and services that enable large enterprises to process inbound and outbound mail. This segment provides inserting equipment; sortation products for mail and parcels; and digital color printing systems, as well as mail presort services. The Digital Commerce Solutions segment provides a range of solutions, including customer information management, location intelligence, customer engagement, shipping management, and ecommerce solutions as traditional software licenses, enterprise platforms, software-as-a-service, and on-demand applications, as well as offers direct and digital marketing services. Pitney Bowes Inc. sells its products through sales force, direct mailings, outbound telemarketing, independent dealers and distributors, and Web channels to various business, governmental, institutional, and other organizations. The company was formerly known as Pitney Bowes Postage Meter Company. The company was founded in 1920 and is headquartered in Stamford, Connecticut.

Highlights

PBI has been ignored or considered a structural short for some time, as the pure play on mail equipment, supplies and services for sending 1st class mail has faced stiff headwinds for some time (e.g., a ~25% decline in US mail volume). However, the presenter believes PBI’s worst days may be in the rear-view mirror, and he is constructive on shares at current levels. He believes the stock could be worth as much as $30 per-share over the next 12-18 months, and provided the following support for his thesis:

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Idea Discussion

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