Tuesday, June 30, 2009

Pulse Seismic Inc

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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