Friday, August 17, 2018

Onex Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. My stock price testing is saying that the stock price is relatively expensive. The lack of coverage of long term debt could be a problem in a recession. See my spreadsheet on Onex Corp.

I do not own this stock of Onex Corp (TSX-ONEX, OTC-ONEXF) but I used to. I bought this stock in 2001 because it was on a stock hit list article I read. By April 2008, I knew that this was not the sort of stock I wanted to be invested in as it was really not a dividend paying stock as the dividends never changed, so I sold.

When I was updating my spreadsheet, I noticed that all the earnings came from discontinued operations. There was a loss from continuing operations. They started to increase the dividends in 2017, but they are still under 1% yield, so really not a dividend paying stock. Few analysts follow it.

This is not really a dividend paying stock. The dividend was flat from 1997 to 2013. Also, the dividend yield has mostly been below 1%. I would not buy a stock with a yield below 1%. (It takes too long for compounding to get you to a good yield.) Some very low yield stock I have waited until the dividend yield is above 1% to buy because of the dividend increases.

They started to raise the dividends in 2014 and the increases have been good. The 5 year dividend growth is 21.19%. This is the only one that counts as dividend increases have only been going on for less than 5 years.

I do not think that they can afford the dividends because of very low EPS. The 5 year coverage looks very good at 6.8% but the 5 year median is a negative 4.4%. On the other hand, the Dividend Payout Ratio for CFPS is really low at 1.21% for 2017 and a 5 year coverage at 0.96. So in this sense, coverage is not a problem.

The Long Term Debt/Market Cap Ratio is 2.95. This means that that long term debt is almost 3 times the value of the stock. This is a concern. I would feel better about this long term debt if they had cash and long term assets to cover the long term debt. Currently that coverage is just 75%.

The Debt Ratio is low at just 1.13 for 2017, but this is not unusual for a Financial Services Sector stock. The Liquidity Ratio is good at 1.59 with 5 year coverage at 1.56. The Leverage and Debt/Equity Ratios are a bit high but here again not unusual for a Financial Services Sector stock at 8.91 and 7.91 respectively.

The Total Return per year is show below for years shown below. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

This first chart is in CDN$ and covers years 5 to 25. Shareholders have done well as far as Total Return goes.

Years Div. Gth Tot Ret Cap Gain Div.
5 21.19% 17.46% 17.10% 0.36%
10 10.08% 10.46% 10.17% 0.28%
15 6.61% 12.78% 12.38% 0.40%
20 4.92% 14.28% 13.64% 0.64%
25 4.31% 18.33% 16.65% 1.67%


This second chart is in US$ and the Total Return, Capital Gains and Dividends, it covers years 5 to 16. Except for the 10 year return, the total return is good.

Years Div. Gth Tot Ret Cap Gain Div.
5 15.69% 11.96% 11.64% 0.32%
10 7.49% 7.67% 7.40% 0.27%
15 8.27% 14.46% 13.97% 0.49%
20, 16 5.61% 11.21% 10.82% 0.39%
25 4.37%


The 5 year low, median, and high median Price/Earnings per Share Ratios are -12.55, -15.01 and -17.48. The corresponding 10 year ratios are -10.66, -12.86 and -16.26. The corresponding historical ratios are 2.75, 3.32 and 3.88. These are all in CDN$ terms. The current P/E Ratio is 127.79 based on a stock price of $97.19 CDN$ and 2018 EPS estimate of $0.79 CDN$ ($0.58 US$). It is impossible to do any testing using P/E Ratios because of the historical lack of earnings.

I get a Graham Price of $22.92 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 0.53, 0.68 and 0.60 CDN$. The current P/GP Ratio is 4.24 based on a stock price of $97.19 CDN$. This stock price testing suggests that the stock price is relatively expensive. However, this is probably not a good test because of the past history of earning losses.

I get a 10 year median Price/Book Value per Share Ratio of 2.14 US$. The current P/B Ratio is 3.15 US$ based on Book Value of $2,362M US$, Book Value per Share of $23.41 US$ and a stock price of $73.81 US$. The current P/B Ratio is some 48% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.52% CDN$. The current dividend yield is 0.36% CDN$ based on dividends of $0.35 CDN$ and a stock price of $79.19 CDN$. The current dividend yield is some 31% below the historical one. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.18 US$. The current P/S Ratio is 0.30 US$ based on last 12 month revenue of $25,100 US$, Revenue per Share of $248.81 US$ and a stock price of $73.81 US$. The current ratio is some 66% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find Strong Buy (1), Buy (3) and Hold (2). The consensus would be a Buy. The 12 month stock price is $105.42 CDN$. This implies a total return of 8.83% with 8.47% from capital gains and 0.36% from dividends.

Onex announces their investment in Power School Group on Global News Wire. Onex reports on 2 quarter results on Global News Wire. Mat Litalien on Motley Fool like the dividend growth of this stock. See what analysts are saying about this stock on Stock Chase. Mostly the analysts like this company.

Onex Corp is a private equity investor and asset management firm. The company invests in businesses in partnership with management teams. It also invests in non-investment-grade debt through credit funds and collateralized loan obligations. Its web site is here Onex Corp.

The last stock I wrote about was about was BlackBerry Ltd. (TSX-BB, NASDAQ-BBRY) ... learn more. The next stock I will write about will be Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Monday, August 20, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, August 15, 2018

BlackBerry Ltd

Sound bite for Twitter and StockTwits is: Damaged tech stock. My stock price testing suggests that the current stock price is relatively expensive. People invest in such stock because of a belief that the stock will do great things in the future. I think that this is still an uncertainty for this company. On the other hand Prem Watsa is known for his astute investments. See my spreadsheet on BlackBerry Ltd.

I do not own this stock of BlackBerry Ltd. (TSX-BB, NYSE-BB) but I used to. I bought this stock for capital gain. I first bought it in 1999 and then some more in 2000. I sold some in 2006 and 2007 to lock in some profit. I sold the rest of my stock in 2010.

When I was updating my spreadsheet, I noticed Fairfax Financial has slightly increased their shareholdings. The Fairfax stake is worth around $660M. They also accepted new debentures with a lower interest rate. Rate have gone from 6% to 3.75%. It would imply that Fairfax thinks the risk of these debentures have gone down.

Debt/Market Cap Ratio is very low at 0.12. Both the Liquidity Ratio and Debt Ratios are very good at 5.49 and 2.96. I want this to be 1.50 and above. The Leverage and Debt/Equity Ratios are also (and low) at 1.51 and 0.51 respectively.

The Total Return per year is show below for years of 5 to 20. This company has never paid dividends so all I have in the chart is Total Return. See charts below. Really long time holders have made money. It would appear that there have been recent gains. The stock did well in 2017.

Years Tot Ret
5 3.54%
10 -18.79%
15 9.83%
20 13.23%


The 5 year low, median, and high median Price/Earnings per Share Ratios are -2.70, -3.07 and -3.43. The corresponding 10 year ratio are 2.69, 4.62 and 5.7 in CDN$. The corresponding historical ratios are 9.80, 16.77 and 25.54 in CDN$. The current P/E Ratio is -36.52 CDN$ based on a stock price of $13.41 CDN$ and 2019 EPS estimate of -$0.37 CDN$. Obviously, a P/E Ratio test is not a good one for this stock.

I get a Graham Price of $1.62 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 0.79, 1.14 and 1.44 in CDN$. The current P/GP Ratio is 8.30 CDN$ based on a stock price of $13.41 CDN$. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 1.91 US$. The current P/B Ratio is 2.31 US$ based on Book Value of $2376M, Book Value per Share of $4.42 and a stock price of $10.24 US$. The current ratio is some 21% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.80 in US$. The current P/S Ratio is 6.17 based on 2019 Revenue estimate of $892 US$, Revenue per Share of $1.66 US$ and a stock price of $10.24 US$. The current P/S Ratio is some 243% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find Buy (2), Hold (12) and Underperform (7). The consensus would be a Hold. The 12 month stock price is $9.61 US$ ($12.60 CDN$). This implies a total loss of $6.03 CDN$ based on a current stock price of $13.41 or 6.15% based on a stock price of $10.24 US$.

Floyd Graber of Press Oracle says this company has an average recommendation of a Hold. Bill Maurer at Seeking Alpha says John Chen has not done a good job turning this company around. Demetris Afxentiou of Motley Fool thinks that Blackberry is a good beat for long term growth. See what analysts are saying on Stock Chase. Some like it, so do not.

BlackBerry Ltd is a Canada-based designer, manufacturer, and marketer of wireless solutions for the mobile communications market. It also owns QNX, a leader in software used in automotive infotainment systems. Its web site is here BlackBerry Ltd.

The last stock I wrote about was about was Stingray Digital Group Inc (TSX-RAY, OTC-NONE) ... learn more. The next stock I will write about will be Onex Corp. (TSX-OCX, OTC-ONEXF) ... learn more on Friday, August 17, 2018 around 5 pm. Tomorrow on my other blog I will write about Dividends and Volatility.... learn more on Thursday, August 16, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, August 13, 2018

Stingray Digital Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. I think that that the current price is reasonable. But some of the ratios are high in absolute terms. For example, P/GP Ratio of 2.70 and the P/B Ratio of 3.88 are high for these types of ratios. This is a startup and therefore high risk. Also, startups with dividends are the sort of companies that cut dividends in recessions. I just bought 100 shares for my TFSA account. I am using this account to try out new risky stocks. See my spreadsheet on Stingray Digital Group Inc.

I just bought some of this stock of Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE). I was following Newfoundland Capital Corp and Stingray Bought them out. Also, I read the blub on CEO, Eric Boyko. The site says he is an entrepreneur with nearly two decades of experience with start-ups, Mr. Boyko has extensive expertise in early stage business innovations.

When I was updating my spreadsheet, I noticed that they only went public in 2015. So, there is not much data on this company. It is still of interest. This is another Quebec start up paying dividends. Why is Quebec so much better with Start Ups than Ontario. I never understood this.

They have paid dividends since they listed on the TSX. Dividend yields are low to moderate. The current dividend is 2.49% with a 3 year median of 1.73%. Current dividend growth is at 26.5% per year. But growth has slowed down with the last dividend increase this year at 10%.

The last year was not a good one for earnings. The Dividend Payout Ratio for 2017 was 500%. However, the 4 year coverage was 82%. Analysts do not think that they will cover the dividend in 2018 and think the DPR will be 104%. If the current rate holds they expect the 2020 dividend to be covered by 62%. (Note that this stock has a financial year ending at the end of March each year.

I do not like the Liquidity Ratio. No matter how I look at Liquidity, there is not good coverage of current liabilities with current assets. This ratio barely breaks 1.00 after we add in Cash Flow after dividends. The other debt ratios are fine, but in tough times, it is Liquidity that counts.

The Long Term Debt/Market Cap is a low 0.07. The Debt Ratio is 2.14. Leverage and Debt/Equity Ratios are low at 1.88 and 0.88 respectively.

The Total Return per year is show below for 2 years. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

Years Div. Gth Tot Ret Cap Gain Div.
2 26.49% 29.33% 26.80% 2.53%


The 3 year low, median, and high median Price/Earnings per Share Ratios are 31.76, 37.21 and 42.67. the current P/E Ratio is 42.14 based on a stock price of $8.85 and 2019 EPS estimate of $0.21. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $3.28. The 3 year low, median, and high median Price/Graham Price Ratios are 2.26, 2.64 and 3.03. The current P/GP Ratio is 2.70 based on a stock price of $8.85. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 3 year median Price/Book Value per Share Ratio of 4.00. The current P/B Ratio is 3.88 based on a Book Value of $128.5M, Book Value per Share of $2.28 and a stock price of $8.85. The current P/B Ratio is some 3% below the 3 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 1.98%. Note that in this case it covers 3 years and the company just declared another dividend hike. The current dividend yield is 2.71% based on a stock price of $8.85 and dividends of $0.24. The current dividend is some 37% above the historical. This stock price testing suggests that the stock price is relative cheap.

The 3 year median Price/Sales (Revenue) Ratio is 3.98. The current P/S Ratio is 2.40 based on 2019 Revenue estimate of $208M, Revenue per Share of $3.69 and a stock price $8.85. This stock price testing suggests that the stock price is relative cheap.

When I look at analysts’ recommendations I find Buy (5) and Hold (1). The consensus recommendation is a Buy. The 12 month stock price consensus is $11.58. This implies a total return of 33.33% with 30.85% from capital gains and 2.49% from dividends.

In a Canadian Press Article on the National Post we learn that this company has made another bid for a US company called Music Choice. Liliana Gabriel on Simply Wall street says that this company has a very low Return on Capital Employed (ROCE) of $3.94. Will Ashworth of Motley Fool likes this small company. It is surprising there are entries on Stock Chase for this stock since it is so new. The two analysts look on it favourably.

Stingray Digital Group Inc. provides business-to-business multi-platform music and in-store media solutions to businesses and individuals worldwide. Its web site is here Stingray Digital Group Inc.

The last stock I wrote about was about was Newfoundland Capital Corp. (TSX-NCC.A, OTC-none) ... learn more. The next stock I will write about will be BlackBerry Ltd. (TSX-BB, NASDAQ-BBRY) ... learn more on Wednesday, August 15, 2018 around 5 pm. Tomorrow on my other blog I will write about Robin Speziale.... learn more on Tuesday, August 14, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, August 10, 2018

Newfoundland Capital Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. It would seem that Stingray is paying a relatively high price for the stock but not an excessive price. See my spreadsheet on Newfoundland Capital Corp.

I do not own this stock of Newfoundland Capital Corp. (TSX-NCC.A, OTC-none). I started to follow this stock as it was suggested as a decent dividend paying stock for investment purposes in the latter part of 2009. It is not on any dividend lists that I follow so I took a look at it.

When I was updating my spreadsheet, I noticed that this company is being bought by Stingray Digital Group Inc. This company provides business-to-business multi-platform music and in-store media solutions to businesses and individuals worldwide. It is headquartered in Montreal and it is dividend paying stock.

Dividend have varied over time. Why there is no value for dividends for 15 year period is that exactly 15 years ago dividends were cancelled. There were no dividends from 2000 to 2003 and then none in 2009. Dividends have done both up and down since being started in 1997. Currently the dividend yield is the highest it has ever been. This is mostly due to some really big increases in 2017 and 2018 of 84% and 42% respectively.

The dividends in the past have been low but current dividends are in the moderate range. The dividend yield is currently at 3.47%. However, the 5, 10 and historical dividend yields are 1.75%, 1.795 and 1.56% respectively.

The company tends to pay what dividends they can afford. So there has been big increases in the past as well. For example, there was a 150% rise in dividends in 2005. The Dividend Payout Ratio for 2017 was 35% with 5 year coverage at 23%. For 2018 the DPR is expected to be at 51% with 5 year coverage at 35%. The 5 year coverage is the one the really counts as any company can have a really good or really bad financial year.

Debt/Market Cap Ratio for 2017 is low at 0.20. The Liquidity Ratio for 2017 is 1.02 with 5 year median at 1.09. However, since this is a consumer stock there is a tendency to use cash flow to cover current liabilities. I you add in cash flow after dividends the ratio because 1.61 with 5 year median at 1.77. Leverage and Debt/Equity Ratios are also good at 1.79 and 0.79 for 2017 with 5 year median at 2.26 and 1.26. Good small companies need good debt ratios to see them through the rough times, like recessions.

The Total Return per year is show below for years of 5 to 25. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

Years Div. Gth Tot Ret Cap Gain Div.
5 18.47% 8.28% 6.48% 1.79%
10 13.35% 8.50% 6.84% 1.65%
15 #NUM! 12.54% 10.66% 1.88%
20 8.87% 13.30% 7.80% 5.50%
25 29.03% 14.74% 14.29%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.34, 11.39 and 13.43. The 10 year ratios are 9.95, 12.04 and 14.12. The corresponding historical ratios are 13.33. 15.81 and 18.66. The current P/E Ratio is 14.69 based on a stock price of $14.22 and latest 12 month EPS of $0.98. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $11.41. The 10 year low, median, and high median Price/Graham Price Ratios are 0.98, 1.15 and 1.33. The current P/GP Ratio is 1.26 based on a stock price of $14.40. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.04. The current P/B Ratio is 2.44 based on Book Value of $173M, Book Value per Share of $5.90 and a stock price of $14.40. The current P/B Ratio is 19.4% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. If the current ratio was 10% higher than the 10 year median the stock would be considered to be relatively expensive.

I get an historical median dividend yield of 1.56%. The current yield is 3.47% based on dividends of $0.50 and a stock price of $14.40. The current yield is some 123% above the historical median. This stock price testing suggests that the stock price is relatively cheap. However, this is probably not a good test because of the recent big rises in dividends.

The 10 year median Price/Sales (Revenue) Ratio is 1.89. The current P/S Ratio is 2.48 based on latest 12 months revenue of $169.7M, Revenue per Share of $5.80 and a stock price of $14.40. The current P/S Ratio is some 32% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find that no analysts seem to be following this stock.

A Canadian Press article in the Globe and Mail says that Stingray Digital Group plans to acquire this company. Roger Taylor at the Chronicle Herald of Halifax talks about the deal with Stingray. There is not much news on this company and it is not followed in Stock Chase.

Newfoundland Capital Corp Ltd is a radio broadcasting company. As a pure-play radio company, its core business is the operation of radio channels globally via the internet and other media. Its revenue is derived from sale of advertising airtime. Its web site is here Newfoundland Capital Corp.

The last stock I wrote about was about was about Choice Properties REIT (TSX- CHP.UN, OTC- PPRQF) ... learn more. The next stock I will write about will be Stingray Digital Group Inc (TSX-RAY, OTC-NONE) ... learn more on Monday, August 13, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, August 8, 2018

Choice Properties REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. My stock testing generally shows this stock as cheap. The only real concern is the Liquidity Ratio. Low Liquidity Ratios can get companies in problems in recessions. We are always going to have another recession at some time. See my spreadsheet on Choice Properties REIT.

I own this stock of Choice Properties REIT (TSX- CHP.UN, OTC-PPRQF). I got this stock when CDN REIT was acquired by Choice Properties.

When I was updating my spreadsheet, I noticed this REIT has only been around for 4 years and it has grown quite a bit in that time period. For example, Revenue is up by 27% and EPS by 52%.

The dividend yield has been good to high. The current dividend yield is good at 5.97% and the 4 year median is also good at 5.36%.

The only item with little growth is the dividends or distributions. The growth over the past 5 years is at 2.86% per year. However, dividend increase did not happen at first with the first increase in 2016 and another one in 2017. So far there has been no increase this year. There is a trade off between dividend yield and dividend growth with higher yields come low growth.

By the standard of earnings, they cannot afford their dividends because 4 year coverage is at 393%. The 2017 coverage is better at 74% with coverage expected to be around 52% in 2018. Generally, affordability on dividends or distributions for REITs is measured using Funds from Operations (FFO) or Adjusted Funds from Operations (AFFO). The DPR for AFFO for 2018 is 83% with 5 year coverage at 84%. The DPR for FFO for 2018 is 68% with 5 year coverage at 68%. Coverage is expected to be between 75% and 95% on this measurement.

Debt/Market Cap Ratio is fine at 0.60 in 2017 and the current one at 0.71. The Liquidity Ratio is really low. Unfortunately, this is the case for all REITs. The current Liquidity Ratio is just 0.32. Which means that the current assets cannot cover the current liabilities. Even when you take of current portion of the debt and add in Cash Flow after Dividends, the ratio is still below 1.00 at 0.79. Liquidity is a problem as it is companies with low Liquidity Ratios that have hard times in recessions.

Unfortunately, the Debt Ratio is also low at 1.10. Most REIT have good Debt Ratios but this company does not. Also, the Leverage and Debt/Equity Ratios are really high at 10.69 and 9.68 but it has been reduced to 4.80 and 3.80 for the second quarter of 2018 and I suspect it will be more reasonable in the future.

The Total Return per year is shown below for year 4. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below. Total return has been good for shareholders.

Years Div. Gth Tot Ret Cap Gain Div.
4 2.86% 12.04% 6.14% 5.90%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.12, 13.85 and 14.58. We only have 5 year ratios to go on. The current P/E Ratio is 8.61 based on a stock price of $12.39 and last 12 month EPS of $1.14. This stock price testing suggests that the stock price is relatively cheap.

Generally, the Price/Funds from Operations (FFO) Ratio test is considered a better test for REITs than the P/E Ratio test. The 5 year low, median, and high median P/FFO Ratios are 11.26, 12.67 and 13.34. The current P/FFO Ratio is 12.03 based on 2018 FFO estimate of 1.03. This stock price testing suggests that the stock price is reasonable and below the median.

I get a Graham Price of $16.45. The 5 year low, median, and high median Price/Graham Price Ratios are 0.84, 0.88 and 0.93. The current P/GP Ratio is 0.75 based on a stock price of $12.39. This stock price testing suggests that the stock price is relatively cheap.

I get a 5 year median Price/Book Value per Share Ratio of 1.21. The current P/B Ratio is 1.06 based on Book Value of $3,236.M, Book Value per Share of $11.67 and a stock price of $12.39. The current P/B Ratio is some 12% less than the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median.

I get an historical median dividend yield of an historical dividend yield of 5.36%. The current dividend yield is 5.97% based on dividends of $0.74 and a stock price of $12.39. The current yield is some 11% above the historical one. This stock price testing suggests that the stock price is reasonable and below the median.

The 5 year median Price/Sales (Revenue) Ratio is 6.77. The current P/S ratio is 7.08 based on 2018 Revenue estimate of $1,167M, Revenue per Share of $1.73 and a stock price of $12.39. The current ratio is some 4.7% above the 5 year median ratio. This stock price testing suggests that the stock price is reasonable but above the median.

When I look at analysts’ recommendations I find Strong Buy (1) and Hold (7). The consensus would be a Hold. The 12 month stock price is $13.14. This implies a total return of $12.03% with 6.05% from Capital Gains and 5.97%% come Distributions based on a current stock price of $12.39

Demetris Afxentiou on Motley Fool thinks this REIT is a good one for your portfolio. John Lawlor on Seeking Alphaalso has good things to say about this REIT. Rachelle Younglai And Marina Strauss on G&M talk about Choice takeover of CDN REIT. See what analysts are saying about this stock on Stock Chase. Analysts say some interesting things.

Choice Properties Real Estate Investment Trust is a player in the real estate sector. The company functions as a real estate investment trust which primarily is focused on managing supermarkets. Its web site is here Choice Properties REIT.

The last stock I wrote about was about was Loblaw Companies Ltd. (TSX-L, OTC-LBLCF) ... learn more. The next stock I will write about will Newfoundland Capital Corp. (TSX-NCC.A, OTC-none) ... learn more on Friday, August 10, 2018 around 5 pm. Tomorrow on my other blog I will write about Something to Buy August 2018.... learn more on August 9, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Tuesday, August 7, 2018

Loblaw Companies Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The current stock price seems to be on the expensive side on all my tests. The company certainly seems to have been doing better lately, but not all that much better. Still, stocks are priced on what people hope for tomorrow. Although now may not be the best time to buy this stock. See my spreadsheet on Loblaw Companies Ltd.

I do not own this stock of Loblaw Companies Ltd. (TSX-L, OTC-LBLCF), but I used to. I owned it from 1996 to 2007. It was originally a great stock. I sold it in 2007 because it was having problems with its tech upgrade to its supply system and it did not seem that it would be fixed anytime soon. It is still not working well. However, I must admit I still like shopping at Loblaws.

When I was updating my spreadsheet, I noticed that shares have gone up by 7.3% and 3.8% per year over the past 5 and 10 years. The increase was due to a 46% increase in 2014 for the purchase of Shopper’s Dung Mart. Because of the share increases, you really need to look at the per share values and they have not gone up much over the past 5 years, or even the past 10 years. An important one is Revenue per Share and this has only increased by 1.5% and 1.2% per year over the past 5 and 10 years.

Dividend yields have always been low to moderate. The current dividend yield is 1.74%. The 5, 10 and historical median dividend yields are 1.52%, 2.12% and 1.25%. Dividend growth used to be good but really slowed down after 2007. See chart below. Dividend growth was once again higher for the last increase at 9.3% for 2018.

They currently have no problem in covering their dividends. The Dividend Payout Ratio for 2017 was 28.5% with 5 year coverage at 50%. The DPR for CFPS is also good with the one for 2017 at 10% and 5 year coverage at 13.5%.

Debt/Market Cap Ratio is good at 0.36 in 2017. The Liquidity Ratio is a bit low and has always been. The ratio for 2017 is 1.30 with 5 year median at 1.43. If you add in cash flow after dividends it is 1.62 with a 5 year median at 1.65. The Debt Ratio is fine at 1.59 for 2017 and 5 year median at 1.61. The Leverage and Debt/Equity Ratios are normal for a consumer stock at 2.69 and 1.69 respectively and 5 year medians at 2.64 and 1.64 respectively.

The Total Return per year is show below for years of 5 to 26. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

The total return from the past 15 and 20 years is quite low. Recently it has picked up again and growth for the past 5 years is good as is the growth for the past 25 years.

Years Div. Gth Tot Ret Cap Gain Div.
5 4.71% 12.20% 10.22% 1.98%
10 2.45% 9.21% 7.21% 2.00%
15 5.49% 3.78% 1.57% 2.21%
20 9.97% 2.93% 1.69% 1.24%
25 10.93% 12.32% 9.86% 2.46%
27 10.63% 11.55% 9.33% 2.22%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 26.28, 28.80 and 31.32. The corresponding 10 year ratios are 15.87, 17.76 and 19.62. The corresponding historical ratios are 17.03, 19.41 and 20.80. The recent increase in this ratio has been on the price side. The current P/E Ratio is 20.45 based on a stock price of $67.68 and EPS of $3.31. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $49.33. The 10 year low, median, and high median Price/Graham Price Ratios are 1.05, 1.18 and 1.33. The current P/GP Ratio is 1.37 based on a stock price of $67.68. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 1.74. The current P/B Ratio is 2.07 based on Book Value of $12,237M, Book Value per Share of $32.67 and a stock price of $67.68. The current ratio is some 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. If it was 20% above the 10 year median, the stock price would be considered expensive.

I get an historical median dividend yield of 1.25%. The current dividend yield is 1.74% based on dividends of $1.18 and stock price of $67.68. The current dividend yield is some 39% above the historical median. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.37. The current P/S Ratio is 0.54 based on 2018 Revenue estimate of $47, 076M, Revenue per Share of $125.68 and a stock price of $67.68. The current ratio is some 44% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find Buy (8) and Hold (3). The consensus recommendation would be a Buy. The 12 month stock price is $78.80. This implies a total return of 18.17% with 16.43% from capital gains and 1.74% from Dividends based on a current stock price of $67.68.

David Jagielski on Motley Fool thinks Loblaws has a revenue growth challenge. A Canadian Press Report on Financial Post talks about this company’s second quarter with earnings and revenue down.. There is a Canadian Press report on the Financial Post about a disagree with of Loblaws with the CRA. See what analysts are saying about this company on Stock Chase. Some like this stock and some do not.

Loblaw Companies Ltd is a retailer of food products that also provides drugstore, general merchandise and financial products and services. The company operates corporate-owned stores as well as franchised stores. Its web site is here Loblaw Companies Ltd.

The last stock I wrote about was about Ballard Power Systems Inc. (TSX-BLDP, NASDAQ-BLDP) ... learn more. The next stock I will write about will be Choice Properties REIT (TSX- CHP.UN, OTC- PPRQF) ... learn more on Wednesday, August 8, 2018 around 5 pm. Today on my other blog I will write about Dividend Stocks August 2018.... learn more on Tuesday, August 7, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, August 3, 2018

Ballard Power Systems Inc.

Sound bite for Twitter and StockTwits is: Industrial Tech Stock. This is listed as an industrial stock, but it is really a tech stock. It has always operated on a hope and a dream. Today is no different. At the time I bought it, it was the next big thing that did not work out. However, relatively speaking it does seem expensive. See my spreadsheet on Ballard Power Systems Inc. .

I do not own this stock of Ballard Power Systems Inc. (TSX-BLDP, NASDAQ-BLDP), but I used to. Back in 1997, I read about Ballard and fell in love with the idea of cars running with fuel cells. I could help save the environment and also make some money. It was very attractive. I sold this stock in 2006 because it had lost its attraction. It did not seem that Ballard fuel cells would be in any car anytime soon. I was ahead in 2000, but the stock started to fall in October 2000 and never recovered.

When I was updating my spreadsheet, I noticed that this company still is not earning any profit. Analysts keep putting off when the first positive earnings will appear.

This stock pays not dividends and it never has.

All the debt ratios for this company are good. The Long Term Debt/Market Cap Ratio is very low at 0.01. The Liquidity Ratio for 2017 is 2.61 with 5 year median of 2.50. The Debt Ratio for 2017 is 3.28 with 5 year median of 2.96. These last two ratios are good if 1.50 or higher. The Leverage and Debt/Equity Ratios are good at 1.44 and 0.47. (These ratios are the same in either currency.)

The Total Return per year is show below for years of 5 to 22. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

It looks like this stock is currently earning some capital gains for the shareholders. For long term holders there is not happy story yet.

Years Div. Gth Tot Ret Cap Gain Div.
5 0.00% 55.58% 55.58% 0.00%
10 0.00% 0.48% 0.48% 0.00%
15 0.00% -7.09% -7.09% 0.00%
20 0.00% -8.96% -8.96% 0.00%
22 0.00% 0.48% 0.48% 0.00%


The 5 year low, median, and high median Price/Earnings per Share Ratios are -9.22, -18.87 and -29.90. The historical P/E Ratios are -8.91, 13.81 and 18.39. the current P/E Ratio is -34.45 CDN$ based on a stock price of $4.05 CDN$ and 2018 EPS estimate of $-$0.12 CDN$ (-$0.09 US$). You cannot do this test with negative P/E Ratios.

I get a Graham Price of $0.71 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 0.32, 0.90 and 0.59 CDN$. The current P/GP Ratio is 5.67 CDN$ based on a stock price of $4.05 CDN$. Since there are lots of earning losses this is not a good test for this stock. However, this test does suggest that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 1.88 US$. The current P/B Ratio is 4.66 US$ based on Book Value of $118.73, Book Value per Share of |$0.66 US$ and a stock price of $3.10 US$. The current P/B Ratio is some 148% above the 10 year median ratio. This test does suggest that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 3.06 US$. The current P/S Ratio is 4.86 US$ based on 2018 Revenue estimate of $114 US$, Revenue per Share of $0.64 US$ and a stock price of $3.10 US$. The current P/S Ratio is some 59% higher than the 10 year ratio. This test does suggest that the stock price is relatively expensive.

When I look at analysts’ recommendations I find Buy (1) and Hold (2). The consensus recommendation would be a Hold. The 12 month price consensus is $3.11 CDN$ ($2.38 US$). This implies a total loss of 23.24% all of which is a capital loss.

Jayson Maclean on Can Tech thinks that Ballard should pivot to ships. In this article the company on News Wire talk about acquiring assets from AFCC. Peter Kolinski on What’s on Thorold talks about recent analysts recommendations on this stock. Maxx Chatsko of Motley Fool does not believe in this stock. Analysts on Stock Chase are not impressed with this stock either.

Ballard Power Systems Inc is engaged in the design, development, manufacture, sale, and service of proton exchange membrane fuel cell products for a variety of applications, focusing on commercial stage and development stage markets. Its web site is here Ballard Power Systems Inc.

The last stock I wrote about was about was Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more. The next stock I will write about will be Loblaw Companies Ltd. (TSX-L, OTC-LBLCF) ... learn more on Tuesday, August 07, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, August 1, 2018

Savaria Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. This stock is showing as relatively expensive consistently on all my stock price tests. It is a good company, but I believe the price is just too high. See my spreadsheet on Savaria Corporation.

I do not own this stock of Savaria Corporation (TSX-SIS, OTC-SISXF). I got this stock off the Dividend Blogger site that no longer exists. I am always interested in dividend growth small cap stock. The first few years of accounting were rather confusing, but I think I figured them out in the end.

When I was updating my spreadsheet, I noticed is that the company has done well for shareholders, especially lately as you can see from the chart below. Another thing that there has been increases in the number of outstanding shares, especially over the past 5 years. The outstanding shares have increased by 12.5% and 4% per year over the past 5 and 10 years.

Dividends are moderate with good growth. The current dividend yield is 2.17%, with 5, 10 and historical yields at 3.30%, 3.89% and 3.70%. The dividend growth is at 25%, 13% and 22% per year over the past 5, 10 and 12 years. However, there were years when dividends were cut as well as increased. Overall dividends have increased. Dividends were started in 2004.

The Dividend Payout Ratio for 2017 is 60.6% with 5 year coverage of 67%. The Dividend Payout Ratios have been too high in the past. The most recent ones are fine with the 5 year coverage a bit high but this was due to 2014 when there was a big dividend increase, but not a big EPS increase.

All the Debt Ratios are good. The Long Term Debt to Market Cap is 0.05 which is very low. The Liquidity Ratio for 2017 is 2.42 with 5 year median at 2.49. The Debt Ratio for 2017 is 2.71 with 5 year median at 2.06. I like these at 1.50 or above. The Leverage and Debt/Equity Ratios are also quite good at 1.58 and 0.58 respectively with 5 year medians of 2.03 and 1.03 respectively. This is a small cap stock and it is important to have good debt ratios when you are a small cap.

The Total Return per year is show below for years of 5 to 16. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

Shareholders have recently done very well on this stock in both capital gains and dividend growth. The stock has gone down a bit this year. However, the TSX has not done well overall either.

Years Div. Gth Tot Ret Cap Gain Div.
5 24.84% 69.25% 63.49% 5.77%
10 13.27% 34.45% 31.26% 3.18%
15 22.48% 13.22% 12.18% 1.04%
16 22.25% 20.68% 1.57%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.26, 18.41 and 22.18. The corresponding 10 year ratios are 13.65, 16.57 and 20.38. The historical ratios are 13.70, 17.41 and 20.88. The current P/E Ratio is 28.57 based on a stock price of $16.57 and 2018 EPS estimate of $0.58. This stock price testing suggests that the stock is relatively expensive.

I get a Graham Price of $6.66. The 10 year low, median, and high median Price/Graham Price Ratios are 0.95, 1.17 and 1.42. The current P/GP Ratio is 2.49 based on a stock price of $16.57. This stock price testing suggests that the stock is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.13. The current P/B Ratio is 4.87 based on Book Value of $140M, Book Value per Share of $3.40 and a stock price of $16.57. The current P/B Ratio is some 129% above the 10 year median. This stock price testing suggests that the stock is relatively expensive.

I get an historical median dividend yield of 3.70%. The current dividend yield is 2.17% based on dividends of $3.60 and a stock price of $16.57. The current yield is some 41% below the historical dividend yield. This stock price testing suggests that the stock is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.67. The current P/S Ratio is 2.43 based on 2018 Revenue estimate of $281, Revenue per Share of 6.81 and a stock price of $16.57. The current P/S Ratio is some 203% above the 10 year median P/S Ratio. This stock price testing suggests that the stock is relatively expensive.

When I look at analysts’ recommendations I find Strong Buy (1) and Buy (5). The consensus would be a Buy. The 12 month stock price is $20.67. This implies a total return of 26.92% with 24.74% from capital gains and 2.17% from dividends based on a current stock price of $16.57.

The company in this article on Globe News Wire talks about their acquisition of a lift company. Daisy Mock on Simply Wall Street says this stock has an intrinsic value of $10.12 so it is currently overvalued. Joey Frenette on Motley Fool thinks that the stock is overpriced. See what analysts are saying on Stock Chase. A number of analysts like this company.

Savaria Corp designs, engineers, and manufactures products for personal mobility of the people. Its products are home elevators, wheelchair lifts, commercial elevators, ceiling lift, stair lift, van conversions and others. Its web site is here Savaria Corporation.

The last stock I wrote about was about was TECSYS Inc. (TSX-TCS, OTC-TCYSF) ... learn more. The next stock I will write about will be Ballard Power Systems Inc. (TSX-BLDP, NASDAQ-BLDP) ... learn more on Friday, August 3, 2018 around 5 pm. Tomorrow on my other blog I will write about Enbridge.... learn more on Thursday, August 20, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, July 30, 2018

TECSYS Inc.

Sound bite for Twitter and StockTwits is: Dividend growth industrial. This stock could also be considered a Tech stock. It is also rather small. From my stock price testing I think it is expensive. I will not be selling this just because it is overpriced, but I will not buy anymore currently. See my spreadsheet on TECSYS Inc.

I own this stock of TECSYS Inc. (TSX-TCS, OTC-TCYSF). I came across this stock when I was looking for a dividend paying small cap stock as a filler stock. I consider a filler stock to be one to soak up small amounts of investment money that I have left over in my account, especially in the TFSA after I have made my main purchase for the year.

When I was updating my spreadsheet, I noticed that if I had bought more than a few shares in this company I could have made a lot more money. The other thing is that there has been lots of insider selling over the past few years. This is a small company so selling by insiders would affect the Selling/Market Cap Percentage. However, this percentage has been high at 1.36%, 0.51% and 0.90%.

A problem is that people can sell for all sorts of reasons, but it is only buying that gives a positive reason because people buy shares in their companies because they feel good about its future. However, looking closer, I find that the Chairman has reduced his shares by 36% over the past 5 years. He is the founder of this company. He and the CEO are brothers. Over the same time period the CEO has reduced his shares by 18%.

They could be selling because they simply need money. Another reason is that they are trying to diversify their investment holdings and not have all their money tied up in one company. Founders of companies are often advised to do this and have a regular selling program.

The dividend yield is low and the dividend growth is good. The current dividend yield is 1.20% with 5, 10 and historical yields at 1.24%, 2.00% and 2.00%. Dividends have only been paid for the past 10 years. Dividends have grown by 21.5% and 16.6% per year over the past 5 and 10 years.

They can afford their dividends. The Dividend Payout Ratio varies from year to year quite a bit because earnings are volatile. The DPR for 2018 was 61.7% with 5 year coverage at 39.5%. In this case the 5 year coverage is probably the important one. The DPR for CFPS for 2018 was 47% with 5 year coverage at 28.8%.

Their long term debt is negligible. The Long Term Debt/Market Cap Ratio is 0.00. All the debt ratios are good. The Liquidity Ratio is 1.76 with 5 year median at 1.61. The Debt Ratio for 2018 is 3.13 with 5 year median at 2.09. The Leverage and Debt/Equity Ratios for 2018 are 1.47 and 0.47 respectively, with 5 year medians at 1.91 and 0.91, respectively. Note that the financial year ends in April each year so I am looking at the financial year ending in April 2018.

The Total Return per year is show below for years of 5 to 19. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

It is interesting that the stock currently has a higher return in more recent years than in the longer term.

Years Div. Gth Tot Ret Cap Gain Div.
5 21.45% 38.52% 36.82% 1.71%
10 16.55% 27.82% 26.10% 1.72%
15 19.86% 18.97% 0.90%
19 9.54% 9.11% 0.42%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 21.69, 29.91 and 38.13. The 10 year corresponding ratios are 18.17, 22.62 and 27.07. The historical ratios are 11.24, 13.54 and 16.46. The rising P/E Ratio rise shows that the stock price is rising faster than earnings. The current P/E Ratio is 32.12 based on a stock price of $16.70 and 2019 EPS of $0.52. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $6.21. The 10 year low, median, and high median Price/Graham Price Ratios are 1.40, 1.83 and 2.21. The current P/GP Ratio is 2.69 based on a stock price of $16.70. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.74. The current P/B Ratio is 5.06 based on a stock price of $16.70, Book Value of $43M and Book Value per Share of $3.30. The current ratio is some 855 higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 2.00%. The current yield is 1.20% based on dividends of $0.20 and a stock price of $16.70. The current yield is some 40% lower than the historical median. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.97. The current P/S Ratio is 2.74 based on 2019 Revenue estimate of $79.7M, Revenue per Share of $6.09 and a stock price of $16.70. The current ratio is some 183% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find Buy (5) and Hold (1). The consensus would be a Buy. The 12 month stock price is $18.10. this implies a total return of 9.58% with 8.38% from capital gains and 1.20% from dividends.

The company talks about its fourth quarterly results on Globe News Wire. Kevin Zeng on Simply Wall Street says that this company has a good historical track record. See what analysts are saying about this stock on Stock Chase. the company is not well covered but it is liked and several analysts have named it their top pick over the years.

Tecsys Inc is a provider of supply chain solutions. The company's solution is built on supply chain platform, and includes warehouse management, distribution management, transportation management, and others. Its web site is here TECSYS Inc.

The last stock I wrote about was about was Pulse Seismic Inc. (TSX-PSD, OTC- PLSDF) ... learn more. The next stock I will write about will be Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more on Wednesday, August 1, 2018 around 5 pm. Tomorrow on my other blog I will write about Enbridge.... learn more on Tuesday, July 31, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, July 27, 2018

Pulse Seismic Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I list it as a dividend paying stock as they have not given up on dividend as evidenced by their recent special dividend. It just maybe a bit pricey for what you get in risks. The lack of debt makes this stock less risky. See my spreadsheet on Pulse Seismic Inc.

I do not own this stock of Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I went to the Globe and Mail site of G&M and from Globe Investor section I selected the Stock Filter. I asked for companies that were priced between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.

When I was updating my spreadsheet, I noticed a lot of red for Revenue, Earnings and Cash Flow. They also discontinued their quarterly dividend in 2017. The Market seems to expect a recovery because the stock price rose in 2016 and 2017. However, it went down again in 2018, but then the TSX has not done a lot this year.

They did cut their regular dividends in 2017. However, in 2017 they gave a special dividend of $0.20 a share. The company talks about giving a special dividend in 2017 on Globe News Wire due to their strong cash position.

They could not afford their dividends as they were not being covered by earnings. This is probably why they were cut.

The company has no long term debt. They Liquidity Ratio for 2017 was 3.09 with a 5 year median of 3.71. The Debt Ratio for 2017 is 3.72 with5 year median of 4.42. The Leverage and Debt/Equity Ratios for 2017 was 1.37 and 0.37 respectively with 5 year median of 1.52 and 0.52 respectively. They have very good debt ratios.

The Total Return per year is show below for years of 5 to 19. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

They have not done well recently for their shareholders. Since they have cut dividends the only return now is capital gain and that has not been very high in the last 5 and 10 years.

Years Div. Gth Tot Ret Cap Gain Div.
5 0.00% 6.08% 3.24% 2.84%
10 0.00% 4.13% 1.68% 2.45%
15 0.00% 11.60% 6.85% 4.74%
19 16.30% 11.19% 5.11%


The 5 year low, median, and high median Price/Earnings per Share Ratios are -8.42, -12.03 and -15.65. The corresponding 10 year ratios are -2.33, -3.49 and -4.64. The historical ratios are 3.59, 5.06 and 6.36. The current P/E Ratio is 19.77 based on a stock price of $2.57 and 2018 EPS estimate of $0.13. It is obvious that we can do not testing again past ratios as there is too many years with negative earnings. On an absolute basis, a P/E Ratio is 19.77 does not point to a cheap price. A Ratio of 19.77 might point to a reasonable price.

I get a Graham Price of $1.38. The 10 year low, median, and high median Price/Graham Price Ratios are 1.97, 2.50 and 2.94. The current P/GP Ratio is 1.86 based on a stock price of $2.57. This stock price testing suggests that the stock price is relatively cheap. There is that same problem with too many EPS losses.

I get a 10 year median Price/Book Value per Share Ratio of $2.51. The current P/B Ratio is 3.92 based on a Book Value of $33.3M, Book Value per Share of $0.66 and a stock price of $2.57. The current ratio is some 565 higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 2.26%. There is no current yield as the company cancelled the dividends. Therefore, we cannot do any stock price testing based on dividend yield.

The 10 year median Price/Sales (Revenue) Ratio is 3.22. The current P/S Ratio is 6.92 based on 2018 Revenue estimate of $20M, Revenue per Share of $0.37 and a stock price of $2.57. The current P/S ratio is some 115% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations I find one Buy recommendation. This is a small stock so it is not well covered. The 12 months stock price given is $3.30. This implies a total return of 28.40% all from capital gains based on a currently stock price of $2.57.

The company put out a new release for their second quarter of 2018 on Globe News Wire. Ambrose O'Callaghan on Motley Fool expects this stock to do well in the future. See what analysts are saying about this stock on Stock Chase. This is not a well-covered stock and the trading volumes are small.

Pulse Seismic Inc acts as a provider of seismic data to the energy sector in western Canada. It is engaged in the acquisition, marketing, and licensing of 2D and 3D seismic data to the energy sector. Its web site is here Pulse Seismic Inc.

The last stock I wrote about was about was Dorel Industries Inc. (TSX-DII.B, OTC-DIIBF) ... learn more. The next stock I will write about will be TECSYS Inc. (TSX-TCS, OTC-TCYSF) ... learn more on Monday, July 30, 2018 around 5 pm.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.