Tuesday, June 17, 2008

FirstService Corp

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 was looking at this as it has come down a lot over the last few months and I own shares. I paid a reasonable price for my shares, an average of $23.00. It is interesting that the company, instead of starting a dividend chose to issue dividend paying preferred shares to its shareholders in August 2007

I notice that there is lots of insider buying. Also, the company has started to buy back shares, even though at the annual meeting in May 2008 it said it would not. I notice that they are not only buying back shares, but also the preferred shares they issued in 2007. This could be because of the steep drop in the price of the shares since the meeting. Has the market overreacted? This is very possible. Usually heavy buying by a company and its executives is a good sign.

The loss in EPS does not seem to call for such a large drop in price from $40 a share in July 2007 to $15 today. Or, is something else happening? Does the market know something I cannot see? Are they just having a bad year because they are into Real Estate in the US? Tomorrow, I will go over the spreadsheet I have.

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