Chipping Off the H&R Block
Can it be April 15 already? I wonder what's worse, paying taxes or having to file them? Anyway, with 1040s dancing in your head, you can't find a better time to Duel over the country's largest tax preparation firm, H&R Block <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HRB)") else Response.Write("(NYSE: HRB)") end if %>.
It is certainly a taxing situation. Is this a company that will continue its dominance through service and innovation or is Block destined to be a simplified tax casualty? This week we bring you a pair of Dueling Fools at opposite sides in the Block talk. Louis Corrigan (TMF Seymor) is a Blockhead, literally. Bill Barker (IdidMrsA) is a Blockbuster, literally.
So, pack a light lunch, call over your accountant (besides, how busy can she be after today), and get ready for a Battle of the Block.
You Get to Vote!
After reading all of the arguments, cast your vote for the winner of the Duel. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the 3Com Message board to continue the duel.
[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]
| The
Bull... You've paid The Man and finished cursing. Now you're ready to support the kind of tax reform that makes filling out a 1040 truly EZ.
Hello! Wake up! What the flat-taxers willfully ignore is that Americans believe
in a progressive tax system. Complexity is fine if it serves our notion of
fairness. Second, simplifying the tax code inevitably involves reducing taxes,
so you'd have to decide which branch of the government to close down. Good
luck! Finally, tax forms are complicated because Americans feel comfortable
using the tax code to influence behavior. Don't believe me? Just try to get
rid of the home mortgage interest deduction. |
The
Bear... Even allowing that H&R Block is the first name, or at least the first two initials, in tax preparation, I find it a bit difficult to justify purchasing a company at a current P/E multiple of about 37 that only has a median five-year estimated earnings growth rate of 15% -- and a trailing five-year earnings growth(?) rate of -5%. Yikes! Continue... |
Results for last week's 3Com Duel
| Answer | Percentage |
| I can't make up my mind | 7% |
| TMF Parlay's Bull argument | 50% |
| TMF Cinder's Bear argument | 30% |
| They were both excellent | 11% |
| They were both lame | 2% |