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Dec 4, 2007 3:10 pm

Any H&R Block reps out there?  Does the latest news reagrding Cerberus have any affect on you?  620 employees being let go, 3 offices closed, $75M restructuring charge. 

  http://biz.yahoo.com/ap/071204/h_r_block_cerberus.html  
Dec 4, 2007 4:14 pm

Even with that news I still had a recruiter call me last week… Ha Ha… I told her if I ever left Jones it wouldn’t be to go work for H&R block!  As if!!

Dec 4, 2007 7:32 pm

No it does not. That’s why the headline says “mortgage” not “financial advisors”.

Dec 4, 2007 8:27 pm

Seems like E*trade used that argument as well, but they still lost accounts.

Dec 4, 2007 10:53 pm

[quote=anabuhabkuss]No it does not. That’s why the headline says “mortgage” not “financial advisors”.[/quote]

Today’s news doesn’t directly affect H&R Block Financial Advisors, but it is Breeden’s clearly stated and oft-repeated plan and intention to get rid of all the non-tax businesses, including FA and the bank.  The mortgage unit was simply the first move, not the last.

How that will play out for the FAs there remains to be seen.  They may well end up in better shape, depending on who buys them.  The one thing that is certain is FAs who are producing decent numbers will never be in danger.

Dec 4, 2007 10:58 pm
bXpress:

Seems like E*trade used that argument as well, but they still lost accounts.

  I'm sorry, so if you knew the answer to your own question why did you ask?
Dec 4, 2007 11:09 pm
Morphius:

[quote=anabuhabkuss]No it does not. That’s why the headline says “mortgage” not “financial advisors”.[/quote]

Today’s news doesn’t directly affect H&R Block Financial Advisors, but it is Breeden’s clearly stated and oft-repeated plan and intention to get rid of all the non-tax businesses, including FA and the bank.  The mortgage unit was simply the first move, not the last.

How that will play out for the FAs there remains to be seen.  They may well end up in better shape, depending on who buys them.  The one thing that is certain is FAs who are producing decent numbers will never be in danger.

  Morphius,   Almost.   Breeden, like many others, does believe that simplying things will be better for the bottom line but of all enitities HRB acquired only HRBFA has recently been profitable to them for several reasons among one is the cutting of expenses they've seen and their recruiting success. Breeden acknowledges that with the hurdle HRBFA has had in the beginning, it would be unfair to pull the plug right now while it's in the black.   The next step is to see how long HRBFA can run in the black for.    
Dec 4, 2007 11:12 pm
MISS JONES:

Even with that news I still had a recruiter call me last week… Ha Ha… I told her if I ever left Jones it wouldn’t be to go work for H&R block!  As if!!

  I'm not quite sure you would come across intelligent enough for a branch manager to want to hire you hence why you work at Jones selling American funds. For future reference try not to confuse a phone call for a job offer.
Dec 5, 2007 3:06 pm
anabuhabkuss:

[quote=bXpress]Seems like E*trade used that argument as well, but they still lost accounts.

  I'm sorry, so if you knew the answer to your own question why did you ask?[/quote]   Just looking for intelligent inside perspective from someone from H&R.  I guess I have to keep looking.
Dec 6, 2007 3:03 pm
anabuhabkuss:

[quote=Morphius]
Today’s news doesn’t directly affect H&R Block Financial Advisors, but it is Breeden’s clearly stated and oft-repeated plan and intention to get rid of all the non-tax businesses, including FA and the bank.  The mortgage unit was simply the first move, not the last.

How that will play out for the FAs there remains to be seen.  They may well end up in better shape, depending on who buys them.  The one thing that is certain is FAs who are producing decent numbers will never be in danger.

  Morphius,   Almost.   Breeden, like many others, does believe that simplying things will be better for the bottom line but of all enitities HRB acquired only HRBFA has recently been profitable to them for several reasons among one is the cutting of expenses they've seen and their recruiting success. Breeden acknowledges that with the hurdle HRBFA has had in the beginning, it would be unfair to pull the plug right now while it's in the black.   The next step is to see how long HRBFA can run in the black for.    [/quote]

While none of us really know what Breeden may or may not eventually do, there is certainly compelling evidence to support the widely-held view that he will, in fact, act aggressively to implement his clearly stated plan to focus on the core tax preparation business, as the following couple of excerpts from recent articles echo:

"We're going to focus on the business that made us great," Breeden said. "This validates Breeden's strategy of focusing H&R Block on tax-related businesses," said David Roberts, a principal at Harvest Investment Advisors LLC in Tallahassee, Florida, which owns H&R Block shares.
_______
Before the vote was announced Richard Breeden told shareholders, "The tidal wave proportions of the election results convey the strongest possible message that share owners want a change in the company's performance and direction. This, we believe, is the dawn of a new era for H&R Block." Breeden wants H&R Block to focus on its core tax business and exit the securities-brokerage and banking and lending businesses.
_________

Obviously there are many others, but these represent the gist of it.  I have nowhere heard Breeden say that he wants to re-focus on the core tax business plus any other businesses so long as they are profitable.  In fact, I would argue that by recently (finally!) achieving profitability, the advisor unit simply increases the likelihood that they will be sold, since they can expect a better price for it.  Much quicker return to shareholders with an asset sale, and Breeden is clearly an activist investor, not a manager. 

In any event, I still think being sold might be a great thing for those in HRBFA, except possibly for those few FAs who are primarily relying on tax leads for new business. 

Do you think a sale would nessarily be bad for you and the other FAs?  Why?
Dec 6, 2007 3:58 pm

Depends on 1) who becomes the new CEO and 2) who buys them.

Dec 6, 2007 6:06 pm

WOOOOOOOO…hey watch the language on this great forum. You made me blush…but I like onery cuties…

Dec 6, 2007 6:15 pm

Oh my, I guess doing that might make it a Merry Christmas.

Dec 6, 2007 8:04 pm

Miss Jones: You are starting to sound like one of my ex wives–show me the money!  They used that same expression many times before—I tried it and I have to say that Christmas wasn’t any more merry!

Dec 6, 2007 8:44 pm
Roadhard:

Miss Jones: You are starting to sound like one of my ex wives–show me the money!  They used that same expression many times before—I tried it and I have to say that Christmas wasn’t any more merry!

Dec 7, 2007 4:04 pm

Just FYI, two HRBFA advisors were featured in On Wall Street in the top 40 advisors column. I could be blind, but I didn’t notice any Edward Jones names there.

Dec 7, 2007 4:13 pm
anabuhabkuss:

Just FYI, two HRBFA advisors were featured in On Wall Street in the top 40 advisors column. I could be blind, but I didn’t notice any Edward Jones names there.

  That is only because they didn't know how to spell my last name! Ha Ha..   Anabuhabkuss- Good point.. I have made a mental note.. Maybe they aren't SOOOO bad!   Miss J
Dec 7, 2007 5:32 pm
anabuhabkuss:

Just FYI, two HRBFA advisors were featured in On Wall Street in the top 40 advisors column. I could be blind, but I didn’t notice any Edward Jones names there.

  You're blind.  But that's another story.
Dec 7, 2007 7:16 pm
MISS JONES:

[quote=anabuhabkuss]Just FYI, two HRBFA advisors were featured in On Wall Street in the top 40 advisors column. I could be blind, but I didn’t notice any Edward Jones names there.

  That is only because they didn't know how to spell my last name! Ha Ha..   Miss J[/quote]   They will soon enough :)