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My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Go, PPD, Go!





Pre-Paid Legal Serivices, Inc., one of my longest holdings, reported terrific results today, and its stock jumped over 11% within the first hour of market opening. It seems that management is executing a cash-cow strategy to keep membership growth in control and extract more cashflow to return to shareholders. Good job!

(Full disclosure: I currently own 580 shares of PPD, including 280 shares bought in 2002 and 300 shares bought in August 2006.)

From PPD:

Pre-Paid Legal Services, Inc. (NYSE: PPD), announced financial results for the third quarter ended September 30, 2006. Membership revenues increased 5% to $103.6 million from $99.0 million for the same period last year. Net income increased 55% to $13.4 million compared to $8.6 million primarily due to lower commissions of $31.4 million compared to $37.4 million for the previous year's comparable period. Diluted earnings per share for the quarter increased 69% to 93 cents per share from 55 cents per share for the prior year's comparable quarter, higher than the net income increase due to the 8% decrease in the diluted shares outstanding.

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