Thursday, September 18, 2008

Manitoba Telecom Service

I first bought this stock (TSX-MBT) in 2006 and it has made me 8.4% return since that time. This includes dividends, which has added 4% - 5% to the return on this stock. Do not forget, that we are in a depressed market, so I would expect a slightly better return of 9% to 10% per year on this stock over the long term.

Dividend increases on this stock are inconsistent, but over the past 5 years, dividends have increased an average of 26% per year. Over the last 10 years, they have increased at a rate of 14% per year. Revenue on this stock has increased at a very good rate of 15.5% per year over the past 5 years to the last annual statement of December 2007. During the same period, the closing price of this stock has increased at a rate of 10% per year, and the Operational Cash Flow has increased at the rate of 22% per year.

The Current Asset/Current Liability ratio is low at .60, but the Asset/Liability ratio is good at 2.06. The Asset/Book Value ratio is not bad at 1.9 and the Accrual Ratio is not bad at -3.6. The Earnings per Share has not increased much over the last 5 years, but the Operational Cash Flow is a more important figure for a utility stock, which is what this stock is.

This company is a full-service communications company. It serves residential and business customers in Manitoba. Their Allstream division serves national business consumers. Its web site is See my spreadsheet at

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. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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