McCoy Global Inc.

Since Monday was a holiday, I did not know what to do today. Do a review of a company or write something for my Investing, Economic blog? I decided to do both. On my other blog today, I am writing about our Native peoples. They live in poverty, so that is an economic problem as well as a social problem. See blog on maybe ordinary families should get involved and sponsor Native families as they have sponsored immigrant families here.

I also have an anniversary of sorts. It was May 21, 2008 when I started this blog, so I guess I now have an 8 year anniversary.

Sound bite for Twitter and StockTwits is: Cheap and risky. I have not given up on this stock. Because it is so cheap, I bought some more with the dividend income I had in my TFSA account. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.

This is one of my stocks that have suspensed its dividend. This is hardly surprising. The company had an earnings loss in 2015 and analysts expect that there will be earnings losses in 2016 and 2017 also. It is not surprising they are having difficulties because they supply services to the energy business.

Last year, 2015, was not a good year for this company. Not only did they have an earnings loss, but Revenue was down by 30% and Cash Flow was down by 37%. The company hit a peak in stock prices in 2014 at $7.56. So far this year stock prices are down by almost 20% and they are also some 77% below their peak.

Things that I like are that their debt ratios are good and they have lots of cash on hand. The Liquidity Ratio is 6.93 their Debt Ratio is 8.44. When ideal ratios for both of these ratios is 1.50 or higher these are very good ratios. It suggests that the company can weather most economic storms.

They have cash on hand that equals 46% of the stock price or $0.79. So you might consider the stock price not at $1.71 of the TSX, but at $0.92. That is $1.71 less cash on hand of $0.79.

The only real stock price test that you can do on this stock is the Price/Book Value per Share Ratio test. The 10 year P/B Ratio is 1.32. The current P/B Ratio is 0.56 based on BVPS of $3.06 and a stock price of $1.71. The current P/B Ratio is some 58% lower than the 10 year ratio. It is also under 1.00. This means that the stock price is less than the BVPS price.

When I look at analysts' recommendations, I find 3 at Hold. The 12 month consensus stock price is $1.93. This suggests a total return of $12.87% all from capital gains.

The company announced first quarterly results on News Wire. The CEO says that the ongoing deterioration of industry fundamentals has reduced customer spending to unprecedented levels, which continues to negatively impact McCoy Global's performance. On the Proactive Investors and article is written about the decline in stock price due to dividend suspension. Ryan Modesto of 5i Research talks about no dividends being safe in an article in the Globe and Mail.

I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.

The last stock I wrote about was about was about Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more . The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Wednesday, May 25, 2016 around 5 pm.

McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy Global Inc.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.