Comments on: Western Union Purchased http://www.fatpitchfinancials.com/433/western-union-purchased/ Special situation stocks and value investing Wed, 15 Oct 2008 21:22:31 +0000 http://wordpress.org/?v=2.6.1 By: Live Financial Services » Blog Archive » Bursting Another Sort of Bubble http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-50108 Live Financial Services » Blog Archive » Bursting Another Sort of Bubble Fri, 29 Dec 2006 18:11:01 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-50108 [...] Western Union Purchased By Fat Pitch FinancialsGeorge of Fat Pitch Financials explains the logic behind his purchase of Western Union (WU). The global leader in money transfers was spun-off from First Data (FDC) earlier this year. George thinks this spin-off of a wide moat company is a fat pitch ? and he’s swinging.Stocks: WU [...] [...] Western Union Purchased By Fat Pitch FinancialsGeorge of Fat Pitch Financials explains the logic behind his purchase of Western Union (WU). The global leader in money transfers was spun-off from First Data (FDC) earlier this year. George thinks this spin-off of a wide moat company is a fat pitch ? and he’s swinging.Stocks: WU [...]

]]> By: Fat Pitch Financials Portfolio Performance Update - Fat Pitch Financials http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-39523 Fat Pitch Financials Portfolio Performance Update - Fat Pitch Financials Wed, 06 Dec 2006 11:33:21 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-39523 [...] Western Union Co/The [...] [...] Western Union Co/The [...]

]]> By: sirgawain http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-29296 sirgawain Wed, 15 Nov 2006 21:01:49 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-29296 The poing of paying extra WU fees is that in international wires done in a bank the fees are larger. and also no strings are attached. western union is a cash business. The poing of paying extra WU fees is that in international wires done in a bank the fees are larger. and also no strings are attached. western union is a cash business.

]]> By: TJP http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-29149 TJP Wed, 15 Nov 2006 13:34:28 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-29149 You only need a bank account to confirm your account. The only use for your bank account is if you need to transfer money into your account. Also, Paypal transfers between customers are instant transfers, no delay exists. Although there is a delay when requesting a money transfer. If the only downside to Paypal is owning a bank account (which virtually is a piece of cake to obtain), then what's the point of paying all those extra Western Union fees? You only need a bank account to confirm your account. The only use for your bank account is if you need to transfer money into your account.

Also, Paypal transfers between customers are instant transfers, no delay exists. Although there is a delay when requesting a money transfer. If the only downside to Paypal is owning a bank account (which virtually is a piece of cake to obtain), then what’s the point of paying all those extra Western Union fees?

]]> By: The Financial Flow » Western Union Purchased http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-28503 The Financial Flow » Western Union Purchased Tue, 14 Nov 2006 06:13:39 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-28503 [...] Western Union Purchased Western Union (WU)?has been added to the Fat Pitch Financial Portfolio.? This paper port, which is similar to my actual holdings, is tracked at Marketocracy. I added 2,290 shares of Western Union?this morning?for an average price of $21.86.There’s nothing too complicated about my decision to purchase a stake in Western Union.?I’ve been tracking [.] (more) [...] [...] Western Union Purchased Western Union (WU)?has been added to the Fat Pitch Financial Portfolio.? This paper port, which is similar to my actual holdings, is tracked at Marketocracy. I added 2,290 shares of Western Union?this morning?for an average price of $21.86.There’s nothing too complicated about my decision to purchase a stake in Western Union.?I’ve been tracking [.] (more) [...]

]]> By: George http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-26396 George Sat, 11 Nov 2006 01:42:53 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-26396 The one thing you forget is that I believe you need to have a bank account to establish a working PayPal account. Also, with PayPal there is a significant delay in receiving physical cash. With Western Union, you just go to one of their counters when you receive a transfer, and they hand you cash. I'm pretty sure you can't do that with PayPal, especially in developing countries. The one thing you forget is that I believe you need to have a bank account to establish a working PayPal account. Also, with PayPal there is a significant delay in receiving physical cash.

With Western Union, you just go to one of their counters when you receive a transfer, and they hand you cash. I’m pretty sure you can’t do that with PayPal, especially in developing countries.

]]> By: TJP http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-26392 TJP Sat, 11 Nov 2006 01:25:23 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-26392 I'm mixed on Western Union. For one, I do believe the shares are highly discounted but WU is not levered for the long term. As Ervin pointed out, Paypal is much cheaper and is expanding in key markets like Europe, Southern Asia, and parts of Africa. Paypal members can transfer funds for free, without worring about those costly Western Union fees. I like the stock now because it's still cheap. I don't like all the unnecssary fees they charge their customers. I'd stick with eBay for the long term. I’m mixed on Western Union. For one, I do believe the shares are highly discounted but WU is not levered for the long term.

As Ervin pointed out, Paypal is much cheaper and is expanding in key markets like Europe, Southern Asia, and parts of Africa. Paypal members can transfer funds for free, without worring about those costly Western Union fees.

I like the stock now because it’s still cheap. I don’t like all the unnecssary fees they charge their customers. I’d stick with eBay for the long term.

]]> By: Ervin http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25749 Ervin Fri, 10 Nov 2006 02:28:48 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25749 Correction: "and it does" should be "and they do". Anyway, I just calculated the cost of sending $200 (the usual amount my family retrieves from the ATM) to my country through WU: a whopping $22. The Economy version costs at least $11, but it's not available for my country. WU has no moat because it has no brand loyalty and no price advantage. They still exist only because they are the best means of sending money to some monkeylands and/or to strangers and/or because some people are uneducated. PayPal is expanding in Europe and around the world. Between PayPal and WU, PayPal wins hands down. It beats even the debit card method I described above, in fees. Correction: “and it does” should be “and they do”.

Anyway, I just calculated the cost of sending $200 (the usual amount my family retrieves from the ATM) to my country through WU: a whopping $22. The Economy version costs at least $11, but it’s not available for my country.

WU has no moat because it has no brand loyalty and no price advantage. They still exist only because they are the best means of sending money to some monkeylands and/or to strangers and/or because some people are uneducated.

PayPal is expanding in Europe and around the world. Between PayPal and WU, PayPal wins hands down. It beats even the debit card method I described above, in fees.

]]> By: Ervin http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25739 Ervin Fri, 10 Nov 2006 02:08:58 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25739 I just want to point out that WU has less and less moat. For example, when I want to send money to my family in Eastern Europe, I don't use WU with its bloated fees. I use an extra debit card I left there specifically for this purpose. It can be used at any VISA ATM. Cost of transaction: less than 4$. The more VISA/MC extend (and it does), the less relevant WU will be. Investing in WU is, nowadays, like investing in a check-to-cash shop. I just want to point out that WU has less and less moat.

For example, when I want to send money to my family in Eastern Europe, I don’t use WU with its bloated fees. I use an extra debit card I left there specifically for this purpose. It can be used at any VISA ATM. Cost of transaction: less than 4$.

The more VISA/MC extend (and it does), the less relevant WU will be. Investing in WU is, nowadays, like investing in a check-to-cash shop.

]]> By: Value Investing News http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25213 Value Investing News Wed, 08 Nov 2006 16:59:05 +0000 http://www.fatpitchfinancials.com/433/western-union-purchased/#comment-25213 <strong>Western Union Purchased by Fat Pitch Financials...</strong> Fat Pitch Financials decides to by Western Union, the recent spin-off from First Data. There looks to be a significant margin of safety with the current market price of WU's stock. ... Western Union Purchased by Fat Pitch Financials…

Fat Pitch Financials decides to by Western Union, the recent spin-off from First Data. There looks to be a significant margin of safety with the current market price of WU’s stock.
…

]]>