Question-and-Answer Session
Thank you. The floor is now open for questions. [Operator Instructions] Our first question is coming from Bob Glasspiegel with Langen McAlenney. Please go ahead.
Robert Glasspiegel - Langen McAlenney
Good morning
Patrick J. Gallagher. Jr. - Chairman, President and Chief Executive Officer
Hey Bob.
Robert Glasspiegel - Langen McAlenney
Pat good to talk to you. On the acquisition analysis guidance that you have given, Doug it sounds like you are saying share counts should trend up over the year that stock used for acquisitions were exceed buyback, is that a fair summation?
Douglas K. Howell - Corporate Vice President and Chief Financial Officer
Really, what I'm saying is that our pipeline is very full right now. We will use as much cash as we have and then to the extent that we have more opportunity in cash, then we probably favor using some of the... some stock in those deals as we get later in the year.
Robert Glasspiegel - Langen McAlenney
Okay, so no guidance guiding on share count, just some sore [ph] factors?
Douglas K. Howell - Corporate Vice President and Chief Financial Officer
I don't know about exactly when the opportunities will arise and how will be timing of our cash flows, but I am telling you that there were favoring acquisitions and that if we need to use the stock to typically with the rest of our deals.
Robert Glasspiegel - Langen McAlenney
Okay, I think you've answered this question, but I just want to be double sure. I'm interpreting quickly, when you are using stock instead of cash, it's being driven by you are out of cash to do it, not the PE is, I mean this is in ahead of the statement about why the earnings are high and the PE is higher and stock is more advantageous. I guess sort of different way, how do you value the cost of equity in doing an acquisition, versus cash?
Douglas K. Howell - Corporate Vice President and Chief Financial Officer
Way you said it first is correct. We view this is as a way to fund our acquisitions and this is not a signal of where do we think the stock is fairly valued, overvalued or undervalued.
Patrick J. Gallagher. Jr. - Chairman, President and Chief Executive Officer
I think it's undervalued.
Robert Glasspiegel - Langen McAlenney
That is big surprise. Thanks Pat.
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