Joe Mazzone

All Posts

• Why Paychex and ADP Earnings will Rise with Interest Rates

  By Joe Mazzone - September 12, 2012 | Tickers: ADP, PAYX

  A substantial portion of the bottom line of payroll processors Automatic Data Processing (NASDAQ: ADP) and Paychex (NASDAQ: PAYX) comes from interest income on float (i.e., excess funds held between receiving funds from clients and paying it out to their employees). Several recent articles have highlighted the positive impact of higher interest rates on these firms, yet no one has quantified it. Below I will lay out just how more »

• Why Hudson City’s Book Value is Misleading

  By Joe Mazzone - September 5, 2012 | Tickers: HCBK, MTB, VLY

  M&T Bank Corp (NYSE: MTB) announced the acquisition of Hudson City Bancorp (NASDAQ: HCBK) for $3.7 billion in stock and cash, equivalent to $7.22 per share on the day of announcement. This values HCBK at just 0.8x tangible book value. It appears that the street perceived this transaction as undervalued, as MTB shares rallied 5% on the news. However, as I will explain below, the reported more »