From an earnings quality standpoint, cash flow from operations grew at a slightly faster rate than net income, which is generally a good sign. Much of the cash flow was returned to shareholders through the buyback plan, but the selling shareholders probably shouldn’t have, as the average transaction price was below $49 and well below the current $68.50 share price. It seems the company can at least spot a good buying opportunity in its own shares.
Since PPD joined forces with start-up, Blastoff Network on September 12 of this year in an exclusive arrangement until October 26, PPD and Blastoff will experience viral growth that is expected to exceed the velocity of Facebook and other social media. Prepaid Legal will become a household name within the next six months. This is a definite buy!