Friday, April 24, 2009

First Service Corp 2

I am continuing the reviewing of this stock (TSX-FSV) from yesterday. This stock is also traded in the US (NASDAQ-RSRV). The comments on Insider Buying and Selling I stated in March still hold. I see lots of buying last summer, lots of selling at the end of 2008, and most recently a bit of buying at under $10 per share. The net effect of this buying and selling is that the CEO and the CFO both have slightly less shares and other officers slightly more shares. The net of the past year is a net to insider selling.

This stock is still quite a bit below the Graham Price. The current P/E is around 9 and this is much lower than the 5 year average of 19. Also, the current Price/Cash Flow (P/CF) and Price/Book Value (P/BV) ratios are lower than the 5 year average for these ratios. However, the Leverage or Asset/Book Value Ratio is about the same as the 5 year average. The other good think is the negative Accrual Ratio.

In March, the consensus recommendations were broad because then all the ratings were present, but the consensus ending up a buy. The consensus is still a buy, but there are lots more Strong Buys and no more sell ratings. (See my site for information on analyst ratings.)

If you look at the charts, you will find that this stock is still underperforming the TSX, but it has recovered a bit lately moving from the $10 range into the $12 range. I will continue to my stock in this company.

This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management and property services. This is an international company, having business in North and South America, Europe, Asia, Australia and New Zealand. Its web site is See my spreadsheet on this company 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.

No comments:

Post a Comment