In January of this year, I reviewed a few small cap stocks that I had found. I did spreadsheets on three of them. Pulse Data (now Pulse Seismic), McCoy Corp and Matrikon Inc. I ended up buying some Matrikon for one of my accounts. Today, I want to start a further review of Pulse Seismic Inc (TSX-PSD) and then go on to review again McCoy Corp. The question is, how have these stocks faired since I last reviewed them.
I have updated my spreadsheet on this stock with results from the December 2008 annual statement. What stands out on this stock is that for the growth figures I follow, the 10 year figures are great, but the 5 year figures are lousy. This is for all the figures, but the stock price. The 5 year growth for the closing price at 8.5% per year is not bad at all. An example of the 10 year figures being great and the 5 year figures being lousy is Cash Flow. For cash flow, the annual growth over the last 10 years is 35%. However, the annual growth over the last 5 years is .1%. This is quite a difference.
If you look at the Liquidity Ratio and the Asset/Liability Ratio, both are very good. The Liquidity Ratio at 1.91 shows that there is no problem with current assets covering current liabilities. The Asset/Liability Ratio at 2.44 is even better. If you look at the Return on Equity (ROE), this is has not been good since 2005/2006. The 5 year average to December 2008 is just 1.7%.
The one bright point is the Accrual Ratio and now, not only is this negative; it is, at -8% below -5%. An Accrual ratio below -5% is usually a good buy signal. However, I will not be buying this stock any time soon as they have just cancelled their dividend payments.
Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse’s 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is www.pulsedatainc.com. See my spreadsheet at www.spbrunner.com/stocks/psd.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
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Tuesday, June 30, 2009
Monday, June 29, 2009
Manitoba Telecom Service 2
I am continuing my review of this stock (TSX-MBT) today. I bought this stock in 2006 and I have made some 2.6% return on it since that time. What has happened since I bought this stock is that it has stalled. No dividend increases and no price increase. In actual fact, I would not buy this stock today. In 2006, this stock looked a lot better. It was not obvious in 2006 that this stock would stall as it has done. Also, this stock is not on any dividend stock list that I follow. Globe Investor gives this stock a 3 star rating.
I first looked at Insider Buying and Selling, like I usually do. There is a bit of selling of this stock in the $43 range at the end of last year. Since then, there has been no activity. In any event, insiders do not own much of this stock.
When looking at ratios, the yield on this stock is quite high at 7.7%. The 5 year average is 5.6%. However, the yield on this stock was more in the 2% to 3% range until the dividend increases stopped. The P/E is in the 11.5 range. This is better than the 13.7, 5 year average on the closing price and even better than the 12.4, 5 year average on the low stock price. When looking at the Price/Book Value ratio, I find that the P/BV of 2008 and at the current time is less than 80% of the 5 year average. This shows a good current price also.
When looking at analysts recommendations, I find that the consensus recommendation is a Hold. However, if you look at the recommendations, they go from a Strong Buy to a Sell and to everything in between. It is obvious that there is a very wide opinion on the value of owning this stock. (See my site for information on analyst ratings.)
Although analysts seem to feel that the earnings for 2009 and 2010 will be higher than those for 2007 and 2008, no one expects that the there will be much difference in the earnings of these years. So it appears that no one expect much to happen over the next two years. I also note that the estimate earnings for 2009 and 2010 have come down slightly from those I obtained in April 2009, when I last looked at this stock.
In looking at the charts, this stock has done better than the TSX and the Utilities Sub-Index only in the long term of 10 years. In the 3 years and 5 years range, it has done worse than both these indexes. In shorter terms like 6 months, it has done about as well as the utilities index, but worse than the TSX. If you look at this stock for the past year, it has again done better than both these indexes. This stock has not done well in the short term, but it did not drop sharply in this recession as other stocks have.
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 www.mts.ca. See my spreadsheet at www.spbrunner.com/stocks/mbt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I first looked at Insider Buying and Selling, like I usually do. There is a bit of selling of this stock in the $43 range at the end of last year. Since then, there has been no activity. In any event, insiders do not own much of this stock.
When looking at ratios, the yield on this stock is quite high at 7.7%. The 5 year average is 5.6%. However, the yield on this stock was more in the 2% to 3% range until the dividend increases stopped. The P/E is in the 11.5 range. This is better than the 13.7, 5 year average on the closing price and even better than the 12.4, 5 year average on the low stock price. When looking at the Price/Book Value ratio, I find that the P/BV of 2008 and at the current time is less than 80% of the 5 year average. This shows a good current price also.
When looking at analysts recommendations, I find that the consensus recommendation is a Hold. However, if you look at the recommendations, they go from a Strong Buy to a Sell and to everything in between. It is obvious that there is a very wide opinion on the value of owning this stock. (See my site for information on analyst ratings.)
Although analysts seem to feel that the earnings for 2009 and 2010 will be higher than those for 2007 and 2008, no one expects that the there will be much difference in the earnings of these years. So it appears that no one expect much to happen over the next two years. I also note that the estimate earnings for 2009 and 2010 have come down slightly from those I obtained in April 2009, when I last looked at this stock.
In looking at the charts, this stock has done better than the TSX and the Utilities Sub-Index only in the long term of 10 years. In the 3 years and 5 years range, it has done worse than both these indexes. In shorter terms like 6 months, it has done about as well as the utilities index, but worse than the TSX. If you look at this stock for the past year, it has again done better than both these indexes. This stock has not done well in the short term, but it did not drop sharply in this recession as other stocks have.
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 www.mts.ca. See my spreadsheet at www.spbrunner.com/stocks/mbt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Friday, June 26, 2009
Manitoba Telecom Service
I am reviewing this stock (TSX-MBT) today, as I have not recently done a review on it. Since my last review, I have updated my spreadsheet on it because of the annual report that I received for the end of December 2008. I bought this stock in 2006 and I have made some 2.6% return on it since that time. I have not had it long enough for it to have over come the effects of the recent recession.
However, I do not think having it any longer time period would have over come the effect of this recession. This stock has not done anything for the last 5 years. Of the growth figures I follow, this stock has not done badly in connection with revenues, earnings, cash flow and book value. The dividend problem is the lack of recent increases. The dividend yield has been high over the last few years because the stock price has not gone anywhere. The good part is the growth in revenues, because without growth in revenues, you will get no other growth.
When looking at the assets and liabilities, I find that the Liquidity Ratio is very low at .32. It means that there are not enough current assets to cover current liabilities. Not a great position to be in during a recession. The Asset/Liability ratio is much better at 2.08. The Return on Equity (ROE) is not bad. The 5 year running average is 15.9% and it was 10.4% for the end of December 2008. It was also 10.7% for the March 2009 1st quarter.
When reviewing the Accrual Ratio, I find it has been low in the last few years. However, for the March 2009 quarter, I noticed that it has jumped up to over 7%. This is rather high, where any Accrual Ratio over 5% is high. But, the year is not over yet, so it hard to say where this will go.
At the current time, I will hold on to my stock on this company and see how it fares when this current recession is over. Tomorrow, I will review what the analysts are saying about it.
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 www.mts.ca. See my spreadsheet at www.spbrunner.com/stocks/mbt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
However, I do not think having it any longer time period would have over come the effect of this recession. This stock has not done anything for the last 5 years. Of the growth figures I follow, this stock has not done badly in connection with revenues, earnings, cash flow and book value. The dividend problem is the lack of recent increases. The dividend yield has been high over the last few years because the stock price has not gone anywhere. The good part is the growth in revenues, because without growth in revenues, you will get no other growth.
When looking at the assets and liabilities, I find that the Liquidity Ratio is very low at .32. It means that there are not enough current assets to cover current liabilities. Not a great position to be in during a recession. The Asset/Liability ratio is much better at 2.08. The Return on Equity (ROE) is not bad. The 5 year running average is 15.9% and it was 10.4% for the end of December 2008. It was also 10.7% for the March 2009 1st quarter.
When reviewing the Accrual Ratio, I find it has been low in the last few years. However, for the March 2009 quarter, I noticed that it has jumped up to over 7%. This is rather high, where any Accrual Ratio over 5% is high. But, the year is not over yet, so it hard to say where this will go.
At the current time, I will hold on to my stock on this company and see how it fares when this current recession is over. Tomorrow, I will review what the analysts are saying about it.
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 www.mts.ca. See my spreadsheet at www.spbrunner.com/stocks/mbt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Thursday, June 25, 2009
Sun Life Financial 2
I am continuing my review this stock (TSX-SLF) because of the annual report and I have not yet reported on this stock, of which I hold some shares. I have no intentions of selling my shares at the present time, as I continue to believe in the long term prospects of this stock.
This company is going through a rough time. I noticed that analysts have lowered their earnings estimates for this stock since I updated my spreadsheet last in April 2009. In looking what analysts’ ratings are on this stock, I see Strong Buys, Buys and Holds. However, the overwhelming rating is a Hold. (See my site for information on analyst ratings.)
I looked at Insider Buying and Selling. I find there is more buying then selling. However, there is not enough of insider trading to affect what insider own in this stock. So in this case, insider trading does not tell us anything.
If you look at spreadsheet ratios, we find that the yield at 4.6% is higher than the 5 year average of 2.8%. The yield has often been lower than this and without 2008 yield of over 5%, the short term average is closer to 2.2%. The current P/E at 13 is not especially low, but this is based on low earnings for 2009. For higher earnings in 2010, the P/E falls to a much better 9.4.
Looking at the Graham Price, this price for 2009 at $40.14 and this is over 20% higher than the current price of $30.99. There is even a bigger spread (over 30%) between the one estimated for 2010 and the current price. If you look at the Price/Book Value, you will find that the current P/BV is quite a bit lower than that for the last 10 years. P/BV is currently at 1.02 and the average for the last 10 years is 1.56. The 5 year average is also 1.56. Of course, the other buy signal is the negative Accrual Ratio. The current one is over -5%.
When looking at the charts, this stock has done as well as the TSX Financials Index and much better than the TSX over the last 10 years. If you look at the last 3 to 5 years, it has underperformed both these indexes. For the past 6 months and past 1 year, this stock has done as well as the TSX, but it has underperformed the Financials Index.
I also want to once again point out about the worry over the guarantees for the segregated funds. This is basically a bet by the insurance companies that the stock market will not have 10 year periods of stock market loses. Segregated funds sold by insurance companies are the equivalent of mutual funds. However, they usually have some sort of guarantee attached. However, these guarantees are not cheap and usually increase the management fees by around 1% per year.
The TSX Index has been around in some form since 1956. I found only one year when there was a 10 year period of negative returns and this was the 10 year period ending in 1974. Although 2009 has also flirted with being 10 year negative return year, currently it is not. The 10 year return to June 23, 2009 stands at 17.6%. (See my site for information on my analysis of this question.)
This is an insurance company. It provides a diverse range of protection and wealth management products and services to individuals and corporate customers. It operates internationally. Its web site is www.sunlife.com. See my spreadsheet at www.spbrunner.com/stocks/slf.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
This company is going through a rough time. I noticed that analysts have lowered their earnings estimates for this stock since I updated my spreadsheet last in April 2009. In looking what analysts’ ratings are on this stock, I see Strong Buys, Buys and Holds. However, the overwhelming rating is a Hold. (See my site for information on analyst ratings.)
I looked at Insider Buying and Selling. I find there is more buying then selling. However, there is not enough of insider trading to affect what insider own in this stock. So in this case, insider trading does not tell us anything.
If you look at spreadsheet ratios, we find that the yield at 4.6% is higher than the 5 year average of 2.8%. The yield has often been lower than this and without 2008 yield of over 5%, the short term average is closer to 2.2%. The current P/E at 13 is not especially low, but this is based on low earnings for 2009. For higher earnings in 2010, the P/E falls to a much better 9.4.
Looking at the Graham Price, this price for 2009 at $40.14 and this is over 20% higher than the current price of $30.99. There is even a bigger spread (over 30%) between the one estimated for 2010 and the current price. If you look at the Price/Book Value, you will find that the current P/BV is quite a bit lower than that for the last 10 years. P/BV is currently at 1.02 and the average for the last 10 years is 1.56. The 5 year average is also 1.56. Of course, the other buy signal is the negative Accrual Ratio. The current one is over -5%.
When looking at the charts, this stock has done as well as the TSX Financials Index and much better than the TSX over the last 10 years. If you look at the last 3 to 5 years, it has underperformed both these indexes. For the past 6 months and past 1 year, this stock has done as well as the TSX, but it has underperformed the Financials Index.
I also want to once again point out about the worry over the guarantees for the segregated funds. This is basically a bet by the insurance companies that the stock market will not have 10 year periods of stock market loses. Segregated funds sold by insurance companies are the equivalent of mutual funds. However, they usually have some sort of guarantee attached. However, these guarantees are not cheap and usually increase the management fees by around 1% per year.
The TSX Index has been around in some form since 1956. I found only one year when there was a 10 year period of negative returns and this was the 10 year period ending in 1974. Although 2009 has also flirted with being 10 year negative return year, currently it is not. The 10 year return to June 23, 2009 stands at 17.6%. (See my site for information on my analysis of this question.)
This is an insurance company. It provides a diverse range of protection and wealth management products and services to individuals and corporate customers. It operates internationally. Its web site is www.sunlife.com. See my spreadsheet at www.spbrunner.com/stocks/slf.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Wednesday, June 24, 2009
Sun Life Financial
I am reviewing this stock (TSX-SLF) today as I have received its annual report. I updated all my spreadsheets as I received the proxy notices and I am gradually reviewing all these stocks in my blog. Since most companies have the end of December as the annual statement date, it takes some time to review them all.
I first bought this stock in 2000 not long after it demutualized. I have added to what I have in 2001 and 2003. To date, including dividends, I have only earned a return of 3% a year. I have it in two accounts and for my pension account, for which I have had this stock since 2000 and got some more in 2001; I have a more decent return of 7.25% per year. I have no intentions of selling my shares, as I continue to believe in the long term prospects of this stock.
Both this insurance company and Manulife are going through a rough time. Investors are worried about the guarantees on segregated funds, which is basically a bet by the insurance companies that the stock market will not have 10 year periods of stock market loses. Segregated funds sold by insurance companies are the equivalent of mutual funds. However, they usually have some sort of guarantee attached. However, these guarantees are not cheap and usually increase the management fees by around 1% per year.
The TSX Index has been around in some form since 1956. I found only one year when there was a 10 year period of negative returns and this was the 10 year period ending in 1974. Although 2009 has also flirted with being 10 year negative return year, currently it is not. The 10 year return to June 23, 2009 stands at 17.6%. (See my site for information on my analysis of this question.)
For this company, the growth figures I follow are not good. Some the 10 year figures are not bad, but most of the 5 year figures are awful. The bright spot was the dividend increases, but this company did not raise their dividends for 2008 and, so far, in 2009 there have been no increases. 2007 was a so-so year for this company. 2008 was not a good year and 2009 looks like the same. No one seems to feel that this company will pick up until at least 2010.
The Asset/Liability Ratio for this stock is 1.17 at the end of 2008 and 1.16 at the end of March 2009. This is a financial stock and they tend to have lower A/L ratios than other types of stock. However, this ratio shows that they have enough assets to cover their liabilities. The problem, of course, is any liability occurred because of their segregated funds guarantees is not included in this ratio.
The Return on Equity (ROE) also took a dive in 2008 and was only 5%. For the quarter ending in March 2009, the ROE is negative. However, most analysts feel that by the end of the year, there will be a positive return in earnings for this stock.
The really bright spot is the Accrual Ratio. The total accruals were negative for the end of December 2008 and for the end of March 2009, they are even better. The Accrual ratio for the end of December 2008 was “-2%” and for the end of March 2009 is “-5.23%”. Anything below -5% is great. And, as I have stated, I intend to hold on to my Sun Life shares at the present time.
This is an insurance company. It provides a diverse range of protection and wealth management products and services to individuals and corporate customers. It operates internationally. Its web site is www.sunlife.com. See my spreadsheet at www.spbrunner.com/stocks/slf.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I first bought this stock in 2000 not long after it demutualized. I have added to what I have in 2001 and 2003. To date, including dividends, I have only earned a return of 3% a year. I have it in two accounts and for my pension account, for which I have had this stock since 2000 and got some more in 2001; I have a more decent return of 7.25% per year. I have no intentions of selling my shares, as I continue to believe in the long term prospects of this stock.
Both this insurance company and Manulife are going through a rough time. Investors are worried about the guarantees on segregated funds, which is basically a bet by the insurance companies that the stock market will not have 10 year periods of stock market loses. Segregated funds sold by insurance companies are the equivalent of mutual funds. However, they usually have some sort of guarantee attached. However, these guarantees are not cheap and usually increase the management fees by around 1% per year.
The TSX Index has been around in some form since 1956. I found only one year when there was a 10 year period of negative returns and this was the 10 year period ending in 1974. Although 2009 has also flirted with being 10 year negative return year, currently it is not. The 10 year return to June 23, 2009 stands at 17.6%. (See my site for information on my analysis of this question.)
For this company, the growth figures I follow are not good. Some the 10 year figures are not bad, but most of the 5 year figures are awful. The bright spot was the dividend increases, but this company did not raise their dividends for 2008 and, so far, in 2009 there have been no increases. 2007 was a so-so year for this company. 2008 was not a good year and 2009 looks like the same. No one seems to feel that this company will pick up until at least 2010.
The Asset/Liability Ratio for this stock is 1.17 at the end of 2008 and 1.16 at the end of March 2009. This is a financial stock and they tend to have lower A/L ratios than other types of stock. However, this ratio shows that they have enough assets to cover their liabilities. The problem, of course, is any liability occurred because of their segregated funds guarantees is not included in this ratio.
The Return on Equity (ROE) also took a dive in 2008 and was only 5%. For the quarter ending in March 2009, the ROE is negative. However, most analysts feel that by the end of the year, there will be a positive return in earnings for this stock.
The really bright spot is the Accrual Ratio. The total accruals were negative for the end of December 2008 and for the end of March 2009, they are even better. The Accrual ratio for the end of December 2008 was “-2%” and for the end of March 2009 is “-5.23%”. Anything below -5% is great. And, as I have stated, I intend to hold on to my Sun Life shares at the present time.
This is an insurance company. It provides a diverse range of protection and wealth management products and services to individuals and corporate customers. It operates internationally. Its web site is www.sunlife.com. See my spreadsheet at www.spbrunner.com/stocks/slf.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Tuesday, June 23, 2009
Pareto Corp 2
I am continuing my review of this dividend paying small cap stock (TSX-PTO). I just found it and did a spreadsheet on it to see how good it was. In this part of my review, I first look at Insider Buying and Selling. What I find is that there is insider buying and it appears that all this buying is under $.70 a share.
When looking at the spreadsheet ratios, I find that the current P/E is around 7.5 and this is much lower than the 5 year average of 15. The Graham price of $1.20 is some 37% higher than the current price of $.75. Also, the Price/Book Value at .70 at the end of 2008 is only 23% of the 10 year average of 3.06 and 30% of the 5 year average of 2.42. All these things point to $.75 being a good price to pay for this stock.
When you look at the yield, it has come down recently, but at the current 8%, it is still quite high. Also, since the company has increased the dividend by 50% for 2009, it would seem that it has faith that it can produce enough cash flow to pay the current good dividends.
In looking for analyst ratings, I can only find two. The ratings are a Strong Buy and a Buy. (See my site for information on analyst ratings.)
I looked at the charts and I compared this stock to the TSX Index. If you look at periods of 1 year and shorter, this stock has done better than the TSX. If you look at the charts for the last 3 and 5 years, this stock has done worse, but it has done as well as any other small cap stock. Small cap stocks have not done as well as the TSX for some time. It is only recently that small cap stock has been doing as well as the TSX and this has been only over the last 6 months.
All in all, this stock looks like a fine one. It is relatively cheap at the moment. It also has a very good dividend. However, this is also a small cap, so the risk level is high. You would only want to buy it if you can stand the risk.
Pareto is a Canadian marketing services and execution company committed to helping clients sell more. We service Canada’s most successful businesses through our network of services; Retail Merchandising, In-Retail Messaging, Direct Marketing, and Incentives. Its web site is www.pareto.ca. See my spreadsheet at www.spbrunner.com/stocks/pto.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
When looking at the spreadsheet ratios, I find that the current P/E is around 7.5 and this is much lower than the 5 year average of 15. The Graham price of $1.20 is some 37% higher than the current price of $.75. Also, the Price/Book Value at .70 at the end of 2008 is only 23% of the 10 year average of 3.06 and 30% of the 5 year average of 2.42. All these things point to $.75 being a good price to pay for this stock.
When you look at the yield, it has come down recently, but at the current 8%, it is still quite high. Also, since the company has increased the dividend by 50% for 2009, it would seem that it has faith that it can produce enough cash flow to pay the current good dividends.
In looking for analyst ratings, I can only find two. The ratings are a Strong Buy and a Buy. (See my site for information on analyst ratings.)
I looked at the charts and I compared this stock to the TSX Index. If you look at periods of 1 year and shorter, this stock has done better than the TSX. If you look at the charts for the last 3 and 5 years, this stock has done worse, but it has done as well as any other small cap stock. Small cap stocks have not done as well as the TSX for some time. It is only recently that small cap stock has been doing as well as the TSX and this has been only over the last 6 months.
All in all, this stock looks like a fine one. It is relatively cheap at the moment. It also has a very good dividend. However, this is also a small cap, so the risk level is high. You would only want to buy it if you can stand the risk.
Pareto is a Canadian marketing services and execution company committed to helping clients sell more. We service Canada’s most successful businesses through our network of services; Retail Merchandising, In-Retail Messaging, Direct Marketing, and Incentives. Its web site is www.pareto.ca. See my spreadsheet at www.spbrunner.com/stocks/pto.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Monday, June 22, 2009
Pareto Corp
I was requested to do a report and put up the spreadsheet for Sun Life, a stock I own. I will do this shortly. Before I do that, I would like to review a dividend paying small cap stock (TSX-PTO) I have just found out about and for which I have done a spreadsheet.
Except for growth in stock price, this stock’s growth in all the other growth figures I track has been very good indeed. However, with some of these figures, I do not have growth figures for the 10 year period. Also, for the dividend growth, I only have figures for one year’s growth. They only started to pay dividends in 2008. When they first started the dividend, its yield was 10%. It has moved steadily down since then and is now at 8%.
The Liquidity Ratio is a little low at 1.05 and it has moved up to 1.07 for the March 2009 quarterly financials. The ratio shows that there are enough current assets to cover current liabilities. However, it is usually desirable that this ratio be at least at 1.50. The Asset/Debt ratio is much better 2.48 for the end of 2008 and at 2.68 for the financials of March 2009.
The next thing I looked at was the Return on Equity (ROE). This has had some ups and downs, but at the end of 2008 at 13%, it is not bad. The last thing to mention, and the only thing I find of concern, is the Accrual Ratio and this is very high. This ratio has been quite high for most of the life of this company.
Tomorrow, I will look at what analysts say about this company. I know there is one or two who follow this company.
Pareto is a Canadian marketing services and execution company committed to helping clients sell more. We service Canada’s most successful businesses through our network of services; Retail Merchandising, In-Retail Messaging, Direct Marketing, and Incentives. Its web site is www.pareto.ca. See my spreadsheet at www.spbrunner.com/stocks/pto.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Except for growth in stock price, this stock’s growth in all the other growth figures I track has been very good indeed. However, with some of these figures, I do not have growth figures for the 10 year period. Also, for the dividend growth, I only have figures for one year’s growth. They only started to pay dividends in 2008. When they first started the dividend, its yield was 10%. It has moved steadily down since then and is now at 8%.
The Liquidity Ratio is a little low at 1.05 and it has moved up to 1.07 for the March 2009 quarterly financials. The ratio shows that there are enough current assets to cover current liabilities. However, it is usually desirable that this ratio be at least at 1.50. The Asset/Debt ratio is much better 2.48 for the end of 2008 and at 2.68 for the financials of March 2009.
The next thing I looked at was the Return on Equity (ROE). This has had some ups and downs, but at the end of 2008 at 13%, it is not bad. The last thing to mention, and the only thing I find of concern, is the Accrual Ratio and this is very high. This ratio has been quite high for most of the life of this company.
Tomorrow, I will look at what analysts say about this company. I know there is one or two who follow this company.
Pareto is a Canadian marketing services and execution company committed to helping clients sell more. We service Canada’s most successful businesses through our network of services; Retail Merchandising, In-Retail Messaging, Direct Marketing, and Incentives. Its web site is www.pareto.ca. See my spreadsheet at www.spbrunner.com/stocks/pto.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Friday, June 19, 2009
Computer Modelling Group 2
I am continuing my review this company (TSX-CMG) today as I just received its annual statement for March 2009. This is also dividend paying small cap and it is one that I owned. It is a small cap and one tied to the oil and gas industry. The Globe Investor gives it a 5 star rating, but it is also in a class of its own in the type of software it provides. This would be a risky stock. That said, there is not a lot of analyst following it, but the ones that are rate this stock highly.
When I looked at the Insider Buying and Selling report, I find there is more selling than buying, especially, by the CEO. However, this recent selling does not substantially change the amount insiders have of this stock. People sell for lots of reasons, so this does not tell us anything.
When I look at spreadsheet ratios, I find that the P/E is around 15.7 and this is higher than the 5 year average on close of 14.7. However, the yield at 5% is higher than the 5 year average of 2.9%. When you look at the Price to Book Value, the current P/BV is 8.9 compared to a 5 year average of 5.2. When we look at the Price to Cash Flow, we find that the P/CF at March 2009 was 8.8 to a 5 year average of 13. However, the Dividend and Cash Flow and Stock Price are growing much quicker than the Book Value.
The other think to look at is the Graham Price. Here the Stock Price is much higher than the Graham Price. In fact, the difference is higher than it has ever been. There could be a problem with the current Graham Price as it is partly based on estimates of what the earnings are going to be. This stock tends to have better earnings than expected. So, we are getting mixed messages from these.
If you look at the charts, this stock has done, at any time period, much better than the TSX Index or the TSX Industrials Index. This is because this is a fast growing small cap. The company seems to certainly have faith that this stock will do well in earnings this year as they raised their dividends, plus threw in a special dividend.
When I look at ratings on this stock, I could only find two. One was a Buy and one was a Strong Buy. (See my site for information on analyst ratings.) I also found some favorable analysis of this stock. I did not find any negative comments. However, I would like again to point out that there are few reports on this stock and few analysts following it.
It is a computer software technology and consulting firm engaged in the development and sale software. They have 250 Clients in 45 countries. Their reservoir simulation software assists petroleum companies to extract an increased amount of oil and gas from their reservoirs. Its web site is www.cmgl.ca. See my spreadsheet at www.spbrunner.com/stocks/cmg.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
When I looked at the Insider Buying and Selling report, I find there is more selling than buying, especially, by the CEO. However, this recent selling does not substantially change the amount insiders have of this stock. People sell for lots of reasons, so this does not tell us anything.
When I look at spreadsheet ratios, I find that the P/E is around 15.7 and this is higher than the 5 year average on close of 14.7. However, the yield at 5% is higher than the 5 year average of 2.9%. When you look at the Price to Book Value, the current P/BV is 8.9 compared to a 5 year average of 5.2. When we look at the Price to Cash Flow, we find that the P/CF at March 2009 was 8.8 to a 5 year average of 13. However, the Dividend and Cash Flow and Stock Price are growing much quicker than the Book Value.
The other think to look at is the Graham Price. Here the Stock Price is much higher than the Graham Price. In fact, the difference is higher than it has ever been. There could be a problem with the current Graham Price as it is partly based on estimates of what the earnings are going to be. This stock tends to have better earnings than expected. So, we are getting mixed messages from these.
If you look at the charts, this stock has done, at any time period, much better than the TSX Index or the TSX Industrials Index. This is because this is a fast growing small cap. The company seems to certainly have faith that this stock will do well in earnings this year as they raised their dividends, plus threw in a special dividend.
When I look at ratings on this stock, I could only find two. One was a Buy and one was a Strong Buy. (See my site for information on analyst ratings.) I also found some favorable analysis of this stock. I did not find any negative comments. However, I would like again to point out that there are few reports on this stock and few analysts following it.
It is a computer software technology and consulting firm engaged in the development and sale software. They have 250 Clients in 45 countries. Their reservoir simulation software assists petroleum companies to extract an increased amount of oil and gas from their reservoirs. Its web site is www.cmgl.ca. See my spreadsheet at www.spbrunner.com/stocks/cmg.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Thursday, June 18, 2009
Computer Modelling Group
First, I would like to say that I have uploaded a new version of my spreadsheet index to my stocks. This index will show a number of ratios and measurements for each stock I have reviewed in my blog. It is always best to compared measurements between companies in the same classification. See my spreadsheet at www.spbrunner.com/stocks/indexport.htm. This index can be used to find a stock you want to investigate further. If you find one, you should look at its full spreadsheet.
I am reviewing this company (TSX-CMG) today as I just received its annual statement for March 2009. This is also dividend paying small cap and it is one that I owned. I first bought this stock in November 2008 and I bought some more in June 2009. To date I have made some 57% annual return on my investment. I currently have an interest in investing and investigating dividend paying small cap companies. I had in the past invested in some small caps, but I did not make any money. Now I am looking into dividend paying small caps. I hope to do better. What killed my small cap stock was the bear market that started in the later part of 2000.
This company has such a great return because this is a fast growing company. Let’s not kid ourselves. This is speculation as well as investment. However, in the last 5 years this company’s dividends have grown 44% per year. This stock has only paid dividends since 2004. Not only has this stock increased its regular dividend rapidly, it has each year paid out a special dividend. Even these special dividends have been increasing.
In all of the growth elements I follow, this stock has good growth. It has had good growth in Revenues, Earnings, Dividends, Stock Price Book Value and Cash Flow over the last 5 and 10 years. There is no measurement that I have where this company is not doing well. Even the Accrual Ratio is negative and very low at -9%.
The next thing to look at is the Liquidity Ratio and the Asset/Debt Ratio. Both these ratios are quite high, with anything above 1.50 for these ratios being good. And, here they are very good at 2.30 and 2.36. The last thing I want to look at today and the only negative thing is the Graham Price. This stock is currently quite a bit above the Graham Price. This happens with growth stocks. The time to be cautious about growth stocks is that when they become mature stocks, their price trends towards the Graham price. However, this is still a small cap and has a long way to go to be a mature stock.
I will take a look tomorrow to see what other analysts are saying, but I doubt that it will be followed by many, as it is a small company.
It is a computer software technology and consulting firm engaged in the development and sale software. They have 250 Clients in 45 countries. Their reservoir simulation software assists petroleum companies to extract an increased amount of oil and gas from their reservoirs. Its web site is www.cmgl.ca. See my spreadsheet at www.spbrunner.com/stocks/cmg.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I am reviewing this company (TSX-CMG) today as I just received its annual statement for March 2009. This is also dividend paying small cap and it is one that I owned. I first bought this stock in November 2008 and I bought some more in June 2009. To date I have made some 57% annual return on my investment. I currently have an interest in investing and investigating dividend paying small cap companies. I had in the past invested in some small caps, but I did not make any money. Now I am looking into dividend paying small caps. I hope to do better. What killed my small cap stock was the bear market that started in the later part of 2000.
This company has such a great return because this is a fast growing company. Let’s not kid ourselves. This is speculation as well as investment. However, in the last 5 years this company’s dividends have grown 44% per year. This stock has only paid dividends since 2004. Not only has this stock increased its regular dividend rapidly, it has each year paid out a special dividend. Even these special dividends have been increasing.
In all of the growth elements I follow, this stock has good growth. It has had good growth in Revenues, Earnings, Dividends, Stock Price Book Value and Cash Flow over the last 5 and 10 years. There is no measurement that I have where this company is not doing well. Even the Accrual Ratio is negative and very low at -9%.
The next thing to look at is the Liquidity Ratio and the Asset/Debt Ratio. Both these ratios are quite high, with anything above 1.50 for these ratios being good. And, here they are very good at 2.30 and 2.36. The last thing I want to look at today and the only negative thing is the Graham Price. This stock is currently quite a bit above the Graham Price. This happens with growth stocks. The time to be cautious about growth stocks is that when they become mature stocks, their price trends towards the Graham price. However, this is still a small cap and has a long way to go to be a mature stock.
I will take a look tomorrow to see what other analysts are saying, but I doubt that it will be followed by many, as it is a small company.
It is a computer software technology and consulting firm engaged in the development and sale software. They have 250 Clients in 45 countries. Their reservoir simulation software assists petroleum companies to extract an increased amount of oil and gas from their reservoirs. Its web site is www.cmgl.ca. See my spreadsheet at www.spbrunner.com/stocks/cmg.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Wednesday, June 17, 2009
Stella-Jones Inc 2
I am continuing my review this company (TSX-SJ) from yesterday. I did a spreadsheet on this company as I had just read a favorable analysts report on it. This is a dividend paying small cap stock. It is not on any the dividend paying stock lists that I look at.
I, of course, first looked at the Insider Buying and Selling. There is a bit of both going on with more Insider Selling than Buying. I do not think that this tells us anything.
The next thing I looked at was the ratios from the spreadsheet. The Yield at 1.57% is higher than the 5 year average of 1.02%. However, the yield on this stock has fluctuated a great deal and it has been around 2% quite a few times. The P/E at just until 9 is not a bad figure. However, the 5 year low P/E is 8, although the average 5 year P/E on the close is 13. The current P/Book Value of 1.7 is quite low and it is lower than the 5 year average of 2.6, but it is not lower than the 10 year average of 1.6. When looking at the Graham Price, the current Graham Price of $22.88 is lower than the 2008 Graham Price of $25.50. It is also lower than the current estimate Graham Price of $27.50. So this stock is at a discount to the Graham price.
In reviewing all the estimates, it would seem that the current price of this stock is good, but not great. You would think that it would be a better deal at this point in the business cycle. Combine the current price with my concerns about the high Accrual Ratio and lack of Cash Flow and I can see why there are Hold ratings on this stock.
When I went to look at the analysts ratings on this stock, I found that there were ratings of Strong Buys, Buys and Holds on this stock. The mean consensus would be a Buy or Hold. It is a toss up on this. (See my site for information on analyst ratings.) I think that I would personally rate it as a Hold. The positive thing I can say about this stock is the strong growth in revenue. It is, of course, revenue growth that will push other growth.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is www.stella-jones.com. See my spreadsheet at www.spbrunner.com/stocks/sj.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I, of course, first looked at the Insider Buying and Selling. There is a bit of both going on with more Insider Selling than Buying. I do not think that this tells us anything.
The next thing I looked at was the ratios from the spreadsheet. The Yield at 1.57% is higher than the 5 year average of 1.02%. However, the yield on this stock has fluctuated a great deal and it has been around 2% quite a few times. The P/E at just until 9 is not a bad figure. However, the 5 year low P/E is 8, although the average 5 year P/E on the close is 13. The current P/Book Value of 1.7 is quite low and it is lower than the 5 year average of 2.6, but it is not lower than the 10 year average of 1.6. When looking at the Graham Price, the current Graham Price of $22.88 is lower than the 2008 Graham Price of $25.50. It is also lower than the current estimate Graham Price of $27.50. So this stock is at a discount to the Graham price.
In reviewing all the estimates, it would seem that the current price of this stock is good, but not great. You would think that it would be a better deal at this point in the business cycle. Combine the current price with my concerns about the high Accrual Ratio and lack of Cash Flow and I can see why there are Hold ratings on this stock.
When I went to look at the analysts ratings on this stock, I found that there were ratings of Strong Buys, Buys and Holds on this stock. The mean consensus would be a Buy or Hold. It is a toss up on this. (See my site for information on analyst ratings.) I think that I would personally rate it as a Hold. The positive thing I can say about this stock is the strong growth in revenue. It is, of course, revenue growth that will push other growth.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is www.stella-jones.com. See my spreadsheet at www.spbrunner.com/stocks/sj.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Tuesday, June 16, 2009
Stella-Jones Inc
I am reviewing this company (TSX-SJ) today as I just read a favorable analysts report on it. This is a dividend paying small cap stock. It is not on any the dividend paying stock lists that I look at. I am always interesting in buying some good dividend paying stock, so I did a spreadsheet on this company. I was considering this stock, but I do have some concerns.
In most of the growth elements I follow, this stock has good growth. It has had good growth in Revenues, Earnings, Dividends, Stock Price and Book Value over the last 5 and 10 years. The only place where there is not good growth is in Cash Flow. Although, if you look at the 5 year running average for Cash Flow, the cash flow is also increasing.
However, I would rather have good cash flow than good earnings. I look at earnings as a rather fake number. Its value is that it is calculated the same way for a variety of companies and you can therefore use it to compare different companies. I am not sure that it really illustrates that a company is earning money. The other thing on this company is that the Accrual Ratio is quite high. High Accrual Ratios can question the quality of the earnings.
If the Accrual Ratio is high, you might wonder if they are manipulating the earnings figure. The reason to like cash flow over earnings is that cash flow is believed to be much harder to manipulate than earnings. What you really like to see in the Accrual Ratio calculation is a higher Cash Flow from Operations than the Net Income and a Total Accruals figure that is negative. For this company, you have a positive net income, but often a negative Cash Flow from Operations.
The Liquidity is 2.09 a little down from the 5 year average of 2.28. Any figure over 1.50 is a good figure. The Asset/Liability Ratio is 1.61 a little lower than the 5 year average of 1.92. Here, again, any figure over 1.50 is good. The Return on Equity (ROE) is good at 17.7% for 2008 and 18.5% for the 5 year average.
You certainly cannot complain about the dividend increases on this stock. Dividend increases have been very good since they started raising them in 2005. The 5 year growth in dividends is some 33%. They pay dividends twice a year, in May and November. We do not know what the raise will be this year yet as the November dividend has not been declared.
I will take a look tomorrow to see what other analysts are saying, but I doubt that it will be followed by many, as it is a small company.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is www.stella-jones.com. See my spreadsheet at www.spbrunner.com/stocks/sj.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
In most of the growth elements I follow, this stock has good growth. It has had good growth in Revenues, Earnings, Dividends, Stock Price and Book Value over the last 5 and 10 years. The only place where there is not good growth is in Cash Flow. Although, if you look at the 5 year running average for Cash Flow, the cash flow is also increasing.
However, I would rather have good cash flow than good earnings. I look at earnings as a rather fake number. Its value is that it is calculated the same way for a variety of companies and you can therefore use it to compare different companies. I am not sure that it really illustrates that a company is earning money. The other thing on this company is that the Accrual Ratio is quite high. High Accrual Ratios can question the quality of the earnings.
If the Accrual Ratio is high, you might wonder if they are manipulating the earnings figure. The reason to like cash flow over earnings is that cash flow is believed to be much harder to manipulate than earnings. What you really like to see in the Accrual Ratio calculation is a higher Cash Flow from Operations than the Net Income and a Total Accruals figure that is negative. For this company, you have a positive net income, but often a negative Cash Flow from Operations.
The Liquidity is 2.09 a little down from the 5 year average of 2.28. Any figure over 1.50 is a good figure. The Asset/Liability Ratio is 1.61 a little lower than the 5 year average of 1.92. Here, again, any figure over 1.50 is good. The Return on Equity (ROE) is good at 17.7% for 2008 and 18.5% for the 5 year average.
You certainly cannot complain about the dividend increases on this stock. Dividend increases have been very good since they started raising them in 2005. The 5 year growth in dividends is some 33%. They pay dividends twice a year, in May and November. We do not know what the raise will be this year yet as the November dividend has not been declared.
I will take a look tomorrow to see what other analysts are saying, but I doubt that it will be followed by many, as it is a small company.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is www.stella-jones.com. See my spreadsheet at www.spbrunner.com/stocks/sj.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Monday, June 15, 2009
Russel Metals 2
I am continuing my review this stock (TSX-RUS) today as I have received its annual report. This stock was on Mike Higgs’ list of dividend paying growth companies. This stock is also on the Dividend Achievers lists at www.dividendachievers.com. However, it is not on the TSX Dividend Aristocracy list at www.tmxmoney.com/en/individual.html (see indices).
This stock starting paying dividends only 9 years ago and only started to increase its dividends 6 years ago. It might lose its place on these lists as it has decreased its dividend in 2009. However, it really had no choice but to decrease the dividends because of a debt covenant it signed.
The first thing I looked at was Insider Trading. There was both Insider Buying and Insider Selling going on, but there is a net of Insider Selling. However, there is not much insider trading going on, but the CFO and CEO and other officers have increased their holdings, while the Directors have decreased theirs.
Because of the recent drop in dividends, the Yield of 6.1% is slightly lower than the 5 year average of 6.3%. The current P/E is in the 5 to 6 range, where the 5 year average is closer to 8, but the 5 year average low is around 6. Neither of these ratios point to a current good price. Also, the forward P/E looks closer to 12. The problem is that this company had very good earnings in 2008; it is expected to drop significantly in 2009 and recover somewhat in 2010.
There is a problem also in using the Graham Price also. This price is partly dependent on the earnings. The current price is probably below the Graham Price, but this price is changing rapidly because of the high earnings in 2008 and the expected very low earnings in 2009. If you look at the Price/Book Value, you get a much better current ratio of 1.05 compared to the 5 year average of 1.72 and a 10 year average of 1.24.
There are Buy ratings on this stock and Hold ratings on this stock. The consensus rating is probably a Hold, but a Hold very close to a buy. (See my site for information on analyst ratings.) Analysts generally seem to feel that 2009 will not be a good year for this stock and that now is not a good time to buy.
This company does metal distribution and processing North America. It operates in three segments of metals service centers, energy tubular products and steel distributors. Its web site is www.russelmetals.com. See my spreadsheet at www.spbrunner.com/stocks/rus.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
This stock starting paying dividends only 9 years ago and only started to increase its dividends 6 years ago. It might lose its place on these lists as it has decreased its dividend in 2009. However, it really had no choice but to decrease the dividends because of a debt covenant it signed.
The first thing I looked at was Insider Trading. There was both Insider Buying and Insider Selling going on, but there is a net of Insider Selling. However, there is not much insider trading going on, but the CFO and CEO and other officers have increased their holdings, while the Directors have decreased theirs.
Because of the recent drop in dividends, the Yield of 6.1% is slightly lower than the 5 year average of 6.3%. The current P/E is in the 5 to 6 range, where the 5 year average is closer to 8, but the 5 year average low is around 6. Neither of these ratios point to a current good price. Also, the forward P/E looks closer to 12. The problem is that this company had very good earnings in 2008; it is expected to drop significantly in 2009 and recover somewhat in 2010.
There is a problem also in using the Graham Price also. This price is partly dependent on the earnings. The current price is probably below the Graham Price, but this price is changing rapidly because of the high earnings in 2008 and the expected very low earnings in 2009. If you look at the Price/Book Value, you get a much better current ratio of 1.05 compared to the 5 year average of 1.72 and a 10 year average of 1.24.
There are Buy ratings on this stock and Hold ratings on this stock. The consensus rating is probably a Hold, but a Hold very close to a buy. (See my site for information on analyst ratings.) Analysts generally seem to feel that 2009 will not be a good year for this stock and that now is not a good time to buy.
This company does metal distribution and processing North America. It operates in three segments of metals service centers, energy tubular products and steel distributors. Its web site is www.russelmetals.com. See my spreadsheet at www.spbrunner.com/stocks/rus.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Friday, June 12, 2009
Russel Metals
I am reviewing this stock (TSX-RUS) today as I have received its annual report. I bought this stock in 2007 as one to replace my Loblaws stock. I have lost some 26% per year on this stock. This is an industrial stock and is into metal processing and we are in a recession. It is no surprise that this stock has lost value and has suffered at this time. However, I intend to continue to hold my shares.
Most growth rates on this stock are good for both the 5 and 10 year periods. There are some exceptions. The first to mention is cash flow, which can vary a lot and it has gone down over the last 5 years. Over the last 10 years, it has only made slight gains. The other thing is that this stock has a very good track record of increased dividend, although they had to lower then in this current recession. People who had bought this stock over the last 5 or 10 years have made money as the stock price has increased and dividends have been good.
The Liquidity Ratio and the Asset/Debt Ratio have always been good for this stock. However, these ratios do not always tell the whole story. It was because of the terms of some debt covenant that they had to lower the dividend this year. They could also be forced to lower dividends some more, but most people think this is unlikely. However, it is still a concern.
When I originally reviewed this stock at the receipt of the annual report, the Accrual Ratio was very high at 13%. I have updated my spreadsheet due to the publication of the March 2009 Quarterly Report. In this report, the Accrual Ratio has come down considerably and the Total Accruals are negative.
As I said previously, I intend, at the present time to keep the stock I have. Tomorrow, I will review what the analysts are saying about this stock.
This company does metal distribution and processing North America. It operates in three segments of metals service centers, energy tubular products and steel distributors. Its web site is www.russelmetals.com. See my spreadsheet at www.spbrunner.com/stocks/rus.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Most growth rates on this stock are good for both the 5 and 10 year periods. There are some exceptions. The first to mention is cash flow, which can vary a lot and it has gone down over the last 5 years. Over the last 10 years, it has only made slight gains. The other thing is that this stock has a very good track record of increased dividend, although they had to lower then in this current recession. People who had bought this stock over the last 5 or 10 years have made money as the stock price has increased and dividends have been good.
The Liquidity Ratio and the Asset/Debt Ratio have always been good for this stock. However, these ratios do not always tell the whole story. It was because of the terms of some debt covenant that they had to lower the dividend this year. They could also be forced to lower dividends some more, but most people think this is unlikely. However, it is still a concern.
When I originally reviewed this stock at the receipt of the annual report, the Accrual Ratio was very high at 13%. I have updated my spreadsheet due to the publication of the March 2009 Quarterly Report. In this report, the Accrual Ratio has come down considerably and the Total Accruals are negative.
As I said previously, I intend, at the present time to keep the stock I have. Tomorrow, I will review what the analysts are saying about this stock.
This company does metal distribution and processing North America. It operates in three segments of metals service centers, energy tubular products and steel distributors. Its web site is www.russelmetals.com. See my spreadsheet at www.spbrunner.com/stocks/rus.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Thursday, June 11, 2009
Transalta Corp 2
I am continuing my review this stock (TSX-TA) today. It is not on the Canadian increasing dividend paying stock lists that I follow, but I have seen it recommended by other people that recommend good Canadian Dividend Paying stock. As I have said yesterday, it pays good dividends and is stable. It is a utility stock.
The first thing I looked at was Insider Buying and Selling. There is lots of insider buying, with CEO, CFO and directors all raising their stake in this company. The other thing about this stock is that after 9 years of flat dividends, the dividends on this stock were raised around 8% in 2008 and 2009. It is obvious that management has confidence in the future of this company.
It is a good buy in connection with spreadsheet ratios? First, I looked at the dividend yield. The current yield is 5.7% compared to a 5 year average of 4.1%, so this is good. The P/E at around 15 is not that low, but it is lower than the 5 year average of 22. Of course, the P/E is dependent on the earnings estimate, and I note that Globe Investor site gives it a current P/E of 17. This is on par with the 5 year average low of 17, but the low P/E ratios of the past have been lower.
The current price is at the current calculated Graham Price of $20.29; but it is still higher than the one for the end of 2008, which is $18.19. Perhaps a better indicator is the Price/Book Value ratio. The current P/BV ratio of 1.50 is less than 80% of the 10 year average P/BV 2.04. These all point to the current price being a decent one.
There are Buy ratings on this stock and Hold ratings. I cannot find any other. The consensus rating is really a toss-up between the Buy and a Hold. (See my site for information on analyst ratings.)
I can see why this stock is given a buy rating because of the new dividend increases and the fact of insider buying. On the other hand, if the current economic problems go on longer, there might be decrease demand for power. Also, this stock hit higher prices 10 years ago than it is at currently. Earnings and cash flow per share 10 years ago were just as good as they are today. Because of the problems it was having, I sold half the stock that I owed in 2000. I think it will do better in the future and this is why I purchased more this year. However, I will continue to monitor this stock.
Transalta is an electric generation and marketing company. They operate in Canada, the U.S., Mexico and Australia. Most of its generating capacity is coal-fired, but it does produce electricity from both hydro power and alternative energy. Its web site is www.transalta.com. See my spreadsheet at www.spbrunner.com/stocks/ta.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
The first thing I looked at was Insider Buying and Selling. There is lots of insider buying, with CEO, CFO and directors all raising their stake in this company. The other thing about this stock is that after 9 years of flat dividends, the dividends on this stock were raised around 8% in 2008 and 2009. It is obvious that management has confidence in the future of this company.
It is a good buy in connection with spreadsheet ratios? First, I looked at the dividend yield. The current yield is 5.7% compared to a 5 year average of 4.1%, so this is good. The P/E at around 15 is not that low, but it is lower than the 5 year average of 22. Of course, the P/E is dependent on the earnings estimate, and I note that Globe Investor site gives it a current P/E of 17. This is on par with the 5 year average low of 17, but the low P/E ratios of the past have been lower.
The current price is at the current calculated Graham Price of $20.29; but it is still higher than the one for the end of 2008, which is $18.19. Perhaps a better indicator is the Price/Book Value ratio. The current P/BV ratio of 1.50 is less than 80% of the 10 year average P/BV 2.04. These all point to the current price being a decent one.
There are Buy ratings on this stock and Hold ratings. I cannot find any other. The consensus rating is really a toss-up between the Buy and a Hold. (See my site for information on analyst ratings.)
I can see why this stock is given a buy rating because of the new dividend increases and the fact of insider buying. On the other hand, if the current economic problems go on longer, there might be decrease demand for power. Also, this stock hit higher prices 10 years ago than it is at currently. Earnings and cash flow per share 10 years ago were just as good as they are today. Because of the problems it was having, I sold half the stock that I owed in 2000. I think it will do better in the future and this is why I purchased more this year. However, I will continue to monitor this stock.
Transalta is an electric generation and marketing company. They operate in Canada, the U.S., Mexico and Australia. Most of its generating capacity is coal-fired, but it does produce electricity from both hydro power and alternative energy. Its web site is www.transalta.com. See my spreadsheet at www.spbrunner.com/stocks/ta.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Wednesday, June 10, 2009
Transalta Corp
I am reviewing this stock (TSX-TA) today as I have received its annual report. I first bought this stock in 1987. I sold some in 2000 as this stock was going through a hard time. I also bought some more of this stock in February 2009. Since I bought this stock in 1987, I have earned 7.8% annual return. Over the past 10 years, including my recent purchase I have made a return of 8.5%. If I exclude my recent purchase, I have made a return of 11% over the past 10 years.
This is a utility stock and you would expect to make a return, with dividends included, of approximately 8% per year. What is expected is that there will be a dividend return of 4% and stock appreciation of 4%. From utilities stocks you should never expect a great return. What you should expect is that they will provide stability to your portfolio.
In looking at the growth rates on this stock, most of the 5 year growth rates are better than the 10 years, but not in all cases. For example, this stock’s Revenue growth of 11% for the last 10 years is better than the 5 year growth of just 4%. When you look at Cash Flow and Book Value, you see the opposite, where the 5 year growth is better than the 10 year growth.
For the Stock Price, it peaked in 2000 and then did not go anywhere until 2005. It is, of course, down at the present time as all stocks are depressed. However, over the long term, this stock has performed as expected. In looking at the dividends, increases have been few, except for the last 2 years and then they have been good at around 8% for 2008 and 2009.
The liquidity ratio has never been great on this stock as it has been below .60. However, the Asset/Liability Ratio has always been above 1.00 and is currently at 1.52. The Return on Equity (ROE) average for the last 5 years is ok at 8.6%. The one for 2008 is better at 9.4%. The one for the first quarter of 2009 is only 6.3% and this is rather low, but this is just the first quarter.
To end on a positive note, the Accrual Ratio is negative. At the end of the first quarter of 2009, it is at a very good -5.3%. I do not have a lot of stock, but I like utilities for the stability they bring to my portfolio and I plan to hold on to what I have. Currently, I do not plan to add anymore of this stock. Tomorrow, I will review what the analysts are saying about this stock. I am still looking at some US stocks, but I feel that I should concentrate on Canadian Stocks, as this is why I have this blog.
Transalta is an electric generation and marketing company. They operate in Canada, the U.S., Mexico and Australia. Most of its generating capacity is coal-fired, but it does produce electricity from both hydro power and alternative energy. Its web site is www.transalta.com. See my spreadsheet at www.spbrunner.com/stocks/ta.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
This is a utility stock and you would expect to make a return, with dividends included, of approximately 8% per year. What is expected is that there will be a dividend return of 4% and stock appreciation of 4%. From utilities stocks you should never expect a great return. What you should expect is that they will provide stability to your portfolio.
In looking at the growth rates on this stock, most of the 5 year growth rates are better than the 10 years, but not in all cases. For example, this stock’s Revenue growth of 11% for the last 10 years is better than the 5 year growth of just 4%. When you look at Cash Flow and Book Value, you see the opposite, where the 5 year growth is better than the 10 year growth.
For the Stock Price, it peaked in 2000 and then did not go anywhere until 2005. It is, of course, down at the present time as all stocks are depressed. However, over the long term, this stock has performed as expected. In looking at the dividends, increases have been few, except for the last 2 years and then they have been good at around 8% for 2008 and 2009.
The liquidity ratio has never been great on this stock as it has been below .60. However, the Asset/Liability Ratio has always been above 1.00 and is currently at 1.52. The Return on Equity (ROE) average for the last 5 years is ok at 8.6%. The one for 2008 is better at 9.4%. The one for the first quarter of 2009 is only 6.3% and this is rather low, but this is just the first quarter.
To end on a positive note, the Accrual Ratio is negative. At the end of the first quarter of 2009, it is at a very good -5.3%. I do not have a lot of stock, but I like utilities for the stability they bring to my portfolio and I plan to hold on to what I have. Currently, I do not plan to add anymore of this stock. Tomorrow, I will review what the analysts are saying about this stock. I am still looking at some US stocks, but I feel that I should concentrate on Canadian Stocks, as this is why I have this blog.
Transalta is an electric generation and marketing company. They operate in Canada, the U.S., Mexico and Australia. Most of its generating capacity is coal-fired, but it does produce electricity from both hydro power and alternative energy. Its web site is www.transalta.com. See my spreadsheet at www.spbrunner.com/stocks/ta.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Tuesday, June 9, 2009
Medtronic Inc. 2
I am continuing my review of this stock (NYSE-MDT) today. I still want to reposition my holdings in my US currency account, so I am looking at other US stocks. I also want to do this while the stock market is relatively low. I can see why this stock might be a favorite, and it is on the US www.dividendachievers.com. I will not be buying this stock, and it is mainly because of the low historical dividend yield.
I have updated my spreadsheet today, as the figures for the year ending in April 2009 have been published. I had not found them before. They have not put out an annual statement, but they published 4th quarter results. I first looked at Insider Buying and Selling and find that there is more selling than buying. However, we are dealing with very small amounts that I do not see that it tells us anything.
Looking that the results, I find that if anyone has held this stock for the last 10 years, they would have lost money. However, the stock price is getting much closer to the Graham Price and the P/E at just under 11 is much lower than it has been for quite some time.
Turning to what analysts are saying about this stock, I find that there are lots of Strong Buy ratings on this stock, and a few Buys and lots Holds. The mean rating would be a Buy. (See my site for information on analyst ratings.) It is always rather interesting when this happens. Obviously, there are very conflicting views on where or not it is a good time to buy this stock, as there seems to be approximately the same number of Holds as Strong Buys.
The last thing I looked at is the charts. You will have to go out 10 years to have a chart where this stock has done better than the S&P500. What strikes me is that this stock has had its up and downs over the past 10 years, but it has essentially gone sideways. This is also true of the US Market, whether you look at the DJIA or the S&P. You would think that the P/E and yields would be much better than what they are. You would also think that stocks would be much closer, or below the Graham Price. Over the last 10 years, you can see the improvement in the P/E, dividend yield and difference between stock price and the Graham Price. However, this stock is not cheap.
When you look at the P/E, it has gone from a peak in 1999 of 94 to 11, but I do not think that a P/E at 11 is cheap. The same is true with the dividend yield. It went from .35% to 2.2%. However, I do not think the dividend yield is particularly high. I would expect at this point in economic cycle, that US stock would relatively cheap. This one is not.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is www.medtronic.com. See my spreadsheet at www.spbrunner.com/stocks/mdt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I have updated my spreadsheet today, as the figures for the year ending in April 2009 have been published. I had not found them before. They have not put out an annual statement, but they published 4th quarter results. I first looked at Insider Buying and Selling and find that there is more selling than buying. However, we are dealing with very small amounts that I do not see that it tells us anything.
Looking that the results, I find that if anyone has held this stock for the last 10 years, they would have lost money. However, the stock price is getting much closer to the Graham Price and the P/E at just under 11 is much lower than it has been for quite some time.
Turning to what analysts are saying about this stock, I find that there are lots of Strong Buy ratings on this stock, and a few Buys and lots Holds. The mean rating would be a Buy. (See my site for information on analyst ratings.) It is always rather interesting when this happens. Obviously, there are very conflicting views on where or not it is a good time to buy this stock, as there seems to be approximately the same number of Holds as Strong Buys.
The last thing I looked at is the charts. You will have to go out 10 years to have a chart where this stock has done better than the S&P500. What strikes me is that this stock has had its up and downs over the past 10 years, but it has essentially gone sideways. This is also true of the US Market, whether you look at the DJIA or the S&P. You would think that the P/E and yields would be much better than what they are. You would also think that stocks would be much closer, or below the Graham Price. Over the last 10 years, you can see the improvement in the P/E, dividend yield and difference between stock price and the Graham Price. However, this stock is not cheap.
When you look at the P/E, it has gone from a peak in 1999 of 94 to 11, but I do not think that a P/E at 11 is cheap. The same is true with the dividend yield. It went from .35% to 2.2%. However, I do not think the dividend yield is particularly high. I would expect at this point in economic cycle, that US stock would relatively cheap. This one is not.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is www.medtronic.com. See my spreadsheet at www.spbrunner.com/stocks/mdt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Monday, June 8, 2009
Medtronic Inc.
I am reviewing this stock (NYSE-MDT) as I am looking for a US stock for my US currency account. Currently I have Barclays Bank in this account. Barclays is also not doing well currently, and I do not see this changing anytime soon. Also, as I already have too much in the Financial Services sector, and I want to reposition my portfolio. What better time to do this than when the market is low. Prices in the market are always relative. If in a low market I sell stocks low, I also buy stocks low. Selling a stock at a relatively low price also lowers capital gain taxes.
So, from my point of view, the time to reposition a portfolio is when the market is low. I also will sell when I find something I like better than what I got now. In looking at possible stocks to invest in, I did a spreadsheet on this stock. However, looking over the spreadsheet after I completed it, I decided that this is not a stock for me. First, I should talk about what is good about this stock.
This stock has great growth in revenue, earnings, dividends, cash flow, and book value over the last 5 and 10 years. I always like stock with good dividend growth and this stock, over the last 5 years has had dividend growth of almost 15% per year. The only negative as far as growth figures goes, is the stock price, which has really stalled over the last 5 years, and if you look at a 10 year period, the stock price has only increase some 7.7% per year in US$. This is not entirely that bad a figure, but it is not a great figure either. Of course, being a Canadian, I will have made even less money because of the currency exchange rates over the last 5 and 10 years.
Another positive of this stock is both the liquidity and the Asset/Liability are very good at around 2.08. These ratios point to a strong Balance Sheet. The Return on Equity is also very good at 22%. The negatives I see for this company is the high Accrual Ratio, which at 6.9% is high than I would like and the low stock price growth. I, of course, also do not like the low yield as I have said earlier.
The management of this company obviously feels the company is in good shape as they raised the dividend some 50% for 2009. However, what I do not like about the dividend is the very low yield. The 5 year average is .7%, but it is only this high because the stock price has stalled over the last 5 years. When dividends yields are so low, I wonder if I am really investing or really speculating. In normal times, it would seem that this stock gives a dividend yield of about ½ of 1%. This would mean that to earn decent money on this stock, you are really relying mostly on stock appreciation.
However, I can see why this stock might be a favorite stock of some. It does have some very good points. But, at the present, I have no intentions of buying this stock. Since I have done a spreadsheet on this stock, I will publish it and also finish my review, by looking to see what analysts are saying about this stock, tomorrow.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is www.medtronic.com. See my spreadsheet at www.spbrunner.com/stocks/mdt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
So, from my point of view, the time to reposition a portfolio is when the market is low. I also will sell when I find something I like better than what I got now. In looking at possible stocks to invest in, I did a spreadsheet on this stock. However, looking over the spreadsheet after I completed it, I decided that this is not a stock for me. First, I should talk about what is good about this stock.
This stock has great growth in revenue, earnings, dividends, cash flow, and book value over the last 5 and 10 years. I always like stock with good dividend growth and this stock, over the last 5 years has had dividend growth of almost 15% per year. The only negative as far as growth figures goes, is the stock price, which has really stalled over the last 5 years, and if you look at a 10 year period, the stock price has only increase some 7.7% per year in US$. This is not entirely that bad a figure, but it is not a great figure either. Of course, being a Canadian, I will have made even less money because of the currency exchange rates over the last 5 and 10 years.
Another positive of this stock is both the liquidity and the Asset/Liability are very good at around 2.08. These ratios point to a strong Balance Sheet. The Return on Equity is also very good at 22%. The negatives I see for this company is the high Accrual Ratio, which at 6.9% is high than I would like and the low stock price growth. I, of course, also do not like the low yield as I have said earlier.
The management of this company obviously feels the company is in good shape as they raised the dividend some 50% for 2009. However, what I do not like about the dividend is the very low yield. The 5 year average is .7%, but it is only this high because the stock price has stalled over the last 5 years. When dividends yields are so low, I wonder if I am really investing or really speculating. In normal times, it would seem that this stock gives a dividend yield of about ½ of 1%. This would mean that to earn decent money on this stock, you are really relying mostly on stock appreciation.
However, I can see why this stock might be a favorite stock of some. It does have some very good points. But, at the present, I have no intentions of buying this stock. Since I have done a spreadsheet on this stock, I will publish it and also finish my review, by looking to see what analysts are saying about this stock, tomorrow.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is www.medtronic.com. See my spreadsheet at www.spbrunner.com/stocks/mdt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Friday, June 5, 2009
Calloway REIT 2
I am continuing my review this stock (TSX-CWT.UN) today. I did a spreadsheet on this stock as it is on the Dividend Achievers list at www.dividendachievers.com. I am gradually doing spreadsheets on all the companies on this list. I do not own stock in this company. You cannot expect all stocks on such lists to be great companies for investment. Personally, I do not like this stock.
I first looked at Insider Buying and Selling on this stock. There is very little of both, but with slightly more Buying than Selling. I do not think we learn anything from this. I always like to look at this because sometimes this is the place to see good or bad news early.
Even though the yield is almost 11% compared to the 5 year average of 7.5%, most analyst have given a recommendation of Hold on this stock. Also, the 5 year average was pushed up because the yield for 2008 was 13.6% but most the yields for the last 5 years were around 6%. The P/E ratio at 14.7 is not bad. I would not want to compare it to the 5 year average, as even the 5 year average low was 44.
Over the last few years, the P/E went very high. This is because the stock price soared in 2006 and in 2007. The stock price also went way above the Graham Price. However, at least at the current time, the Graham Price and the stock price are closer, but with the Graham price at about $11.50 and the current price at $14, the stock price is still almost 18% higher than the Graham Price. The only good ratio, in connection with a good buying price I see is that the Price/Book Value ratio is .95 is lower than the 10 year average of 1.20.
Looking at the Charts, this stock has done as well as the REIT index over the past 1 to 5 years. I know that the charts show that this stock has done much better over the last 10 years, but I do not think that stock prices over 5 years out are reliable. None of the charts seems to have noticed the 2 for 1 consolidation of February 2002. They seem to have picked up the larger consolidation in November 2002, but I did not feel that the stock prices more than 5 years out were reliable. (I have shown these in light purple on my spreadsheet because I am just not sure of them.)
In looking at analysts recommendations, I see a few Buys and a few Reduce calls, but most of the calls are for a Hold. The consensus recommendation is a Hold. (See my site for information on analyst ratings.)
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is www.callowayreit.com. See my spreadsheet at www.spbrunner.com/stocks/cwt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I first looked at Insider Buying and Selling on this stock. There is very little of both, but with slightly more Buying than Selling. I do not think we learn anything from this. I always like to look at this because sometimes this is the place to see good or bad news early.
Even though the yield is almost 11% compared to the 5 year average of 7.5%, most analyst have given a recommendation of Hold on this stock. Also, the 5 year average was pushed up because the yield for 2008 was 13.6% but most the yields for the last 5 years were around 6%. The P/E ratio at 14.7 is not bad. I would not want to compare it to the 5 year average, as even the 5 year average low was 44.
Over the last few years, the P/E went very high. This is because the stock price soared in 2006 and in 2007. The stock price also went way above the Graham Price. However, at least at the current time, the Graham Price and the stock price are closer, but with the Graham price at about $11.50 and the current price at $14, the stock price is still almost 18% higher than the Graham Price. The only good ratio, in connection with a good buying price I see is that the Price/Book Value ratio is .95 is lower than the 10 year average of 1.20.
Looking at the Charts, this stock has done as well as the REIT index over the past 1 to 5 years. I know that the charts show that this stock has done much better over the last 10 years, but I do not think that stock prices over 5 years out are reliable. None of the charts seems to have noticed the 2 for 1 consolidation of February 2002. They seem to have picked up the larger consolidation in November 2002, but I did not feel that the stock prices more than 5 years out were reliable. (I have shown these in light purple on my spreadsheet because I am just not sure of them.)
In looking at analysts recommendations, I see a few Buys and a few Reduce calls, but most of the calls are for a Hold. The consensus recommendation is a Hold. (See my site for information on analyst ratings.)
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is www.callowayreit.com. See my spreadsheet at www.spbrunner.com/stocks/cwt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Thursday, June 4, 2009
Calloway REIT
I am reviewing this stock (TSX-CWT.UN) today as it is on the Dividend Achievers list at www.dividendachievers.com. I am gradually doing spreadsheets on all the companies on this list. I do not own stock in this company.
I know that people complain somewhat about this list, as the qualifications on this Canadian list are lower than on the comparable US list. The US list has companies that have increased their dividends for the last 10 years and for the Canadian list, companies must only have increased their dividends for the last 5 years. However, what you want to know what a stock has done recently, so to look at increases dividends for the last 5 years is not bad. However, this does not mean that I endorse all stocks that raise their dividends. On the contrary, I like companies to raise their dividends only as they can afford them.
When looking at the 5 and 10 year growth rates on this company, some are fine, but some I find worrisome. The growth of the Distributable Income is growing at about the rate of the distributions and the cash flow is growing a bit faster. However, I find that the payout ratios are very high. It seems that few people expect that the distributions are going to grow over this year and or next. The distributions were last changed in August 2007 and there was no increase in 2008. Even with distributions staying the same, it would appear that the payout will remain high.
The Asset/Liability is good at 1.51. However, the Return on Equity is low. The 5 year average is just 3% and the ROE for 2008 was a bit better at 6%. This company seems to have always have had a low ROE. Also, the Accrual Ratio has a tendency to be rather high. This could call into question the quality of the earnings for this company.
At the present, I have no intentions of buying this stock. The payout ratio is too high and the dividend increases have come to a halt. I already have some REITs and I am happy with what I have. I will, however, look to see what analysts are saying about this stock tomorrow.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is www.callowayreit.com. See my spreadsheet at www.spbrunner.com/stocks/cwt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
I know that people complain somewhat about this list, as the qualifications on this Canadian list are lower than on the comparable US list. The US list has companies that have increased their dividends for the last 10 years and for the Canadian list, companies must only have increased their dividends for the last 5 years. However, what you want to know what a stock has done recently, so to look at increases dividends for the last 5 years is not bad. However, this does not mean that I endorse all stocks that raise their dividends. On the contrary, I like companies to raise their dividends only as they can afford them.
When looking at the 5 and 10 year growth rates on this company, some are fine, but some I find worrisome. The growth of the Distributable Income is growing at about the rate of the distributions and the cash flow is growing a bit faster. However, I find that the payout ratios are very high. It seems that few people expect that the distributions are going to grow over this year and or next. The distributions were last changed in August 2007 and there was no increase in 2008. Even with distributions staying the same, it would appear that the payout will remain high.
The Asset/Liability is good at 1.51. However, the Return on Equity is low. The 5 year average is just 3% and the ROE for 2008 was a bit better at 6%. This company seems to have always have had a low ROE. Also, the Accrual Ratio has a tendency to be rather high. This could call into question the quality of the earnings for this company.
At the present, I have no intentions of buying this stock. The payout ratio is too high and the dividend increases have come to a halt. I already have some REITs and I am happy with what I have. I will, however, look to see what analysts are saying about this stock tomorrow.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is www.callowayreit.com. See my spreadsheet at www.spbrunner.com/stocks/cwt.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Wednesday, June 3, 2009
Enbridge Inc 2
I am continuing my review this stock (TSX-ENB) today as I have received its annual report. I first bought this stock in 2005. I bought more of this stock it in 2008 and 2009. To date, including dividends, I have a return of 2.5% per year. I expect this to improve when the market recovers.
The first thing I looked at was Insider Buying and Selling. There is considerable insider selling, but it appears to be all options. This insider selling equals some .07% of the market value of this stock, so it is minor. I do not think that this tell us anything. This company has raised their dividend some 12% this year and this tell us much more. It says that the management has confidence in the current earning power of this company.
If you look at the ratios, I find that the yield at 3.8% is higher than the 5 year average of 3% and higher than the 10 year average of 3.2%. However, even though yield is not that good, it is better than normal. When I look at the P/E, which is 17, this is better than the 5 year average on close of 18 but not the 5 year low average of 15. However, the trailing P/E of 10 is much lower than the trailing P/E of both the 5 year average on close and the 5 year low average.
The current price is at the Graham Price for the end of 2008, but it is higher than the current estimate Graham Price. The Price/Book Value ratio is at 85 % of the 10 year average. Both the current Graham Price and the current P/E depends on earnings estimates, which may or may not be correct. The yield, Price/Book Value and the trailing P/E are based on actual values, so they may be better indicators. However, this all points to a relatively low current price or a fair current price.
There are lots of Strong Buy and Hold ratings on this stock, and a few Buys. The mean rating would be a Buy. (See my site for information on analyst ratings.) This stock is considered a low risk investment with a good dividend. On the other hand, this stock does depend on development of our Oil Sands.
As I said yesterday, I am currently happy with this stock and I intend to continue to hold on to it. This is a stock that is on everyone’s lists. It is on the Dividend Achievers list at www.dividendachievers.com, and the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and it was also on Mike Higgs’ list.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com. See my spreadsheet at www.spbrunner.com/stocks/enb.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
The first thing I looked at was Insider Buying and Selling. There is considerable insider selling, but it appears to be all options. This insider selling equals some .07% of the market value of this stock, so it is minor. I do not think that this tell us anything. This company has raised their dividend some 12% this year and this tell us much more. It says that the management has confidence in the current earning power of this company.
If you look at the ratios, I find that the yield at 3.8% is higher than the 5 year average of 3% and higher than the 10 year average of 3.2%. However, even though yield is not that good, it is better than normal. When I look at the P/E, which is 17, this is better than the 5 year average on close of 18 but not the 5 year low average of 15. However, the trailing P/E of 10 is much lower than the trailing P/E of both the 5 year average on close and the 5 year low average.
The current price is at the Graham Price for the end of 2008, but it is higher than the current estimate Graham Price. The Price/Book Value ratio is at 85 % of the 10 year average. Both the current Graham Price and the current P/E depends on earnings estimates, which may or may not be correct. The yield, Price/Book Value and the trailing P/E are based on actual values, so they may be better indicators. However, this all points to a relatively low current price or a fair current price.
There are lots of Strong Buy and Hold ratings on this stock, and a few Buys. The mean rating would be a Buy. (See my site for information on analyst ratings.) This stock is considered a low risk investment with a good dividend. On the other hand, this stock does depend on development of our Oil Sands.
As I said yesterday, I am currently happy with this stock and I intend to continue to hold on to it. This is a stock that is on everyone’s lists. It is on the Dividend Achievers list at www.dividendachievers.com, and the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and it was also on Mike Higgs’ list.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com. See my spreadsheet at www.spbrunner.com/stocks/enb.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Tuesday, June 2, 2009
Enbridge Inc
I am reviewing this stock (TSX-ENB) today as I have received its annual report. I first bought this stock in 2005. I bought more of this stock it in 2008 and 2009. To date, including dividends, I have a return of 2.5% per year. I expect this to improve when the market recovers.
This stock has great growth in revenue, earnings, dividends, cash flow, book value and the stock price over the last 5 and 10 years. This stock has grown the dividends at the rate of 8.9% and 9.7% for the last 5 and 10 years. If you look at the spreadsheet, you will see the growth in dividends for 2009 was 12% and this is higher than it has been for the last few years.
Since I updated my spreadsheet for the 2008 Annual report, the stock price has moved slightly down. I am keeping the same estimates for earnings. Estimates do not seem to have changed much. No one still expects that they will do as well in 2009 and 210 as they did in 2008. However, the first quarterly report of March has earnings slight ahead of what everyone seemed to have expected. I have updated my spreadsheet with results from the 1st quarter.
The liquidity ratio has deteriorated from .92 to .81. This is quite low and it means that the current assets cannot cover the current liabilities. The Asset/Liabilities ratio has also gone down very slightly from 1.37 to 1.36. However, the Accrual Ratio has improved greatly from 11% to .61%.
By and large, I am still happy to have bought this stock and I intend to hold on to it. This is a stock that is on everyone’s lists. It is on the Dividend Achievers list at www.dividendachievers.com, and the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and it was also on Mike Higgs’ list.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com. See my spreadsheet at www.spbrunner.com/stocks/enb.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
This stock has great growth in revenue, earnings, dividends, cash flow, book value and the stock price over the last 5 and 10 years. This stock has grown the dividends at the rate of 8.9% and 9.7% for the last 5 and 10 years. If you look at the spreadsheet, you will see the growth in dividends for 2009 was 12% and this is higher than it has been for the last few years.
Since I updated my spreadsheet for the 2008 Annual report, the stock price has moved slightly down. I am keeping the same estimates for earnings. Estimates do not seem to have changed much. No one still expects that they will do as well in 2009 and 210 as they did in 2008. However, the first quarterly report of March has earnings slight ahead of what everyone seemed to have expected. I have updated my spreadsheet with results from the 1st quarter.
The liquidity ratio has deteriorated from .92 to .81. This is quite low and it means that the current assets cannot cover the current liabilities. The Asset/Liabilities ratio has also gone down very slightly from 1.37 to 1.36. However, the Accrual Ratio has improved greatly from 11% to .61%.
By and large, I am still happy to have bought this stock and I intend to hold on to it. This is a stock that is on everyone’s lists. It is on the Dividend Achievers list at www.dividendachievers.com, and the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices) and it was also on Mike Higgs’ list.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is www.enbridge.com. See my spreadsheet at www.spbrunner.com/stocks/enb.htm.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
Monday, June 1, 2009
State Of Dividends May 2009
Today, I am putting up a spreadsheet (see dividend income spreadsheet) showing two things about my dividend income for 2009. The first column called “Div May” and the second is called “09”. Under “Div May”, I have recorded the dividend increase for that particular stock for 2009 compared to 2008. In the second column of “09”, I have recorded if the company actually declared a dividend increase so far in 2009. I have also shown dividend increase information for 2007 and 2008.
In the last 2 months that is in April or May, BCE (TSX-BCE), Toromont Industries Ltd (TSX-TIH) and TransCanada Corp (TSX-TRP) have raised their dividends. Husky Energy (TSX-HSE) has decreased their dividend. For the companies that have raised their dividends in the last two months, I have shown the increase for the year. Take TransCanada Corp, where I have shown the increase as being 4.1%. I will get one dividend of $.36 and three dividends of $.38 for a total of $1.50. This is an increase of 4.1% over last year’s dividend of $1.44. However, I expect to get at least 4 dividends in 2010 of $.38 for a total of $1.52. So my dividends for 2010 will have already increased by 1.3%.
You will note that I have shown increases in the “Div May” columns where the “09” column does not show an actual increase for the year. For example, my dividend for Emera (TSX-EA) will be 4.7% higher in 2009 then in 2008. However, Emera have not yet declared a dividend increase for 2009. They did declare a dividend increase in November 2008. So the dividends I will receive in 2009 were those declared as of November 2008. So while I will get more money in dividends from them in 2009, they have not actually yet declared a dividend increase for 2009.
In 2008, I got dividends from Emera in February, May, August and November at the per share rate of $.2375, $.2375, $.2375, and $.2525 for a total of $.965 per share. In 2009, I have gotten 1 dividend from then in February of $.2525 per share and if this continues for 2009, I will get from them a total of $1.01 per share in dividends. Going from $.965 per share to $1.01 per share for year gives me an increase in dividends of 4.7%.
On my list, I have 12 companies that have increased their dividends already in 2009. I also have 6 companies that have decreased their dividends. The rest have not yet made changes. My total projected Dividend income for 2009 has gone up 13.4%. Also, my projected income for 2010 is 5.2% higher than that I will earn in 2009.
Of the decreases for April and May 2009, Penn West Energy has again decreased their dividend. This company is an oil and gas producer. Prices for these products have come down, so it is no surprise the dividends have decreased. Dividends on this company have always changed with the prices of oil and gas. Dividends on oil and gas companies tend to fluctuate.
The new decrease for April and May is Husky Energy (TSX-HSE). This is also an oil company and the price for oil fluctuates. The dividends for these companies tend to fluctuate also.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
In the last 2 months that is in April or May, BCE (TSX-BCE), Toromont Industries Ltd (TSX-TIH) and TransCanada Corp (TSX-TRP) have raised their dividends. Husky Energy (TSX-HSE) has decreased their dividend. For the companies that have raised their dividends in the last two months, I have shown the increase for the year. Take TransCanada Corp, where I have shown the increase as being 4.1%. I will get one dividend of $.36 and three dividends of $.38 for a total of $1.50. This is an increase of 4.1% over last year’s dividend of $1.44. However, I expect to get at least 4 dividends in 2010 of $.38 for a total of $1.52. So my dividends for 2010 will have already increased by 1.3%.
You will note that I have shown increases in the “Div May” columns where the “09” column does not show an actual increase for the year. For example, my dividend for Emera (TSX-EA) will be 4.7% higher in 2009 then in 2008. However, Emera have not yet declared a dividend increase for 2009. They did declare a dividend increase in November 2008. So the dividends I will receive in 2009 were those declared as of November 2008. So while I will get more money in dividends from them in 2009, they have not actually yet declared a dividend increase for 2009.
In 2008, I got dividends from Emera in February, May, August and November at the per share rate of $.2375, $.2375, $.2375, and $.2525 for a total of $.965 per share. In 2009, I have gotten 1 dividend from then in February of $.2525 per share and if this continues for 2009, I will get from them a total of $1.01 per share in dividends. Going from $.965 per share to $1.01 per share for year gives me an increase in dividends of 4.7%.
On my list, I have 12 companies that have increased their dividends already in 2009. I also have 6 companies that have decreased their dividends. The rest have not yet made changes. My total projected Dividend income for 2009 has gone up 13.4%. Also, my projected income for 2010 is 5.2% higher than that I will earn in 2009.
Of the decreases for April and May 2009, Penn West Energy has again decreased their dividend. This company is an oil and gas producer. Prices for these products have come down, so it is no surprise the dividends have decreased. Dividends on this company have always changed with the prices of oil and gas. Dividends on oil and gas companies tend to fluctuate.
The new decrease for April and May is Husky Energy (TSX-HSE). This is also an oil company and the price for oil fluctuates. The dividends for these companies tend to fluctuate also.
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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
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