I am reviewing this stock (TSX-BIN) today as I have not reviewed it since I received the annual report for the end of December 2008. Please note that the last time I reviewed this stock, its name was BFI Canada and the stock symbol was TSX- BFC.UN. This change was effected May 27, 2009. I made a small try out investment in this stock in November 2007 and so far I have had a -28% return.
If you look at the growth figures for this stock, they are mostly very good. The only really low one is for 5 year growth in stock price. The 5 year growth in stock price was just 3%. We are in a recession and at least the growth is positive. An example of good growth is the 5 and 10 years growth in earnings, which are 10% and 16%. They also have solid growth in cash flow. However, the growth in book value is a little low at 8% and 5% for the 5 and 10 year periods.
There are a couple of things that I do not like about this stock. The first thing I do not like is the liquidity ratio, which is only 0.82. This means that current assets to not cover completely the current liabilities. However, the Asset/Liability Ratio is good at 1.70. I like to see both these ratios at, at least, 1.50. The next thing that I do not like is that the Return on Equity (ROE) for 2008 was only 6.5%. The 5 running average ROE to December 2008 was also low at 4.7%. The ROE on this stock has never been particularly high.
I have updated my spreadsheet with the June 2009 quarterly report. In this report, the Liquidity Ratio is higher at 0.91 and this is good. The ROE however, is still low at 4.9%. On Monday, I talk about what the analysts say about this stock. I am holding on to my stock at the current time.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. The fund operates through its subsidiaries. Its web site is www.bficanada.com . See my spreadsheet at www.spbrunner.com/stocks/bfc.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, July 31, 2009
Thursday, July 30, 2009
Canadian Tire Corp 2
I am continuing my review this stock (TSX-CTC.A) today, as I have not reviewed it since I received the annual report for the end of December 2008. I bought this stock in Nov 2000 for one of my accounts. My return, including dividend is 11.6% per year.
When I look at Insider Buying and Insider Selling on this stock, I find there is $6M in selling and $5M in buying. The buying is by a variety of people, but the selling is all by two officers of the company. It is never a good sign when there is lots of selling, but there is a limited number of people selling, so they could be selling for a variety of reasons that have nothing to so with the company’s expected future performance.
When I look at the spreadsheet ratios, what I find is that the dividend yield at 1.6% is above the long term average of 1.1%, but this company has not increased their dividends this year. Usually they do the increase with the June dividend, but this has not occurred this year and I have seen no announcement yet. This is not a good sign. Between 1991 and 2004, they kept their dividend at the same amount. They started to increase their dividends with the ones payable in 2005 and since that time, they have had good growth in dividends.
In regards to the P/E ratio, the current ratio is about 13, which is the same as the 5 year low, so this is good. The Graham Price is some 17% above the current price, so this is good also. I find the other ratios I look at, the Price/Book Value and Price/Sales ratios to be low also. All these point to a relatively good current price.
When looking for analyst recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy rating. (See my site for information on analyst ratings.) There are quite a number of analysts following this stock and there is a lot of hold recommendations. However, there are, of course, Strong Buy and Buy recommendations.
When you look at the charts and compare this stock with the TSX Index I find that over the short term, it has out-preformed the TSX. Over the long term, of 5 and 10 years, it has done as well as the TSX. I am happy with my investment in this stock and I will continue to hold what I have.
They engaged in retail sales, financial services and petroleum sales. They own Canadian Tire Store, Gas Outlets, Parts Source Stores and Mark's Work Warehouse. The Canadian Tire stores offer a unique range of automotive, sports and leisure and home products. Its web site is corp.canadiantire.ca/. See my spreadsheet at www.spbrunner.com/stocks/ctc.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 look at Insider Buying and Insider Selling on this stock, I find there is $6M in selling and $5M in buying. The buying is by a variety of people, but the selling is all by two officers of the company. It is never a good sign when there is lots of selling, but there is a limited number of people selling, so they could be selling for a variety of reasons that have nothing to so with the company’s expected future performance.
When I look at the spreadsheet ratios, what I find is that the dividend yield at 1.6% is above the long term average of 1.1%, but this company has not increased their dividends this year. Usually they do the increase with the June dividend, but this has not occurred this year and I have seen no announcement yet. This is not a good sign. Between 1991 and 2004, they kept their dividend at the same amount. They started to increase their dividends with the ones payable in 2005 and since that time, they have had good growth in dividends.
In regards to the P/E ratio, the current ratio is about 13, which is the same as the 5 year low, so this is good. The Graham Price is some 17% above the current price, so this is good also. I find the other ratios I look at, the Price/Book Value and Price/Sales ratios to be low also. All these point to a relatively good current price.
When looking for analyst recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy rating. (See my site for information on analyst ratings.) There are quite a number of analysts following this stock and there is a lot of hold recommendations. However, there are, of course, Strong Buy and Buy recommendations.
When you look at the charts and compare this stock with the TSX Index I find that over the short term, it has out-preformed the TSX. Over the long term, of 5 and 10 years, it has done as well as the TSX. I am happy with my investment in this stock and I will continue to hold what I have.
They engaged in retail sales, financial services and petroleum sales. They own Canadian Tire Store, Gas Outlets, Parts Source Stores and Mark's Work Warehouse. The Canadian Tire stores offer a unique range of automotive, sports and leisure and home products. Its web site is corp.canadiantire.ca/. See my spreadsheet at www.spbrunner.com/stocks/ctc.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, July 29, 2009
Canadian Tire Corp
I am reviewing this stock (TSX-CTC.A) today as I have not reviewed it since I received the annual report for the end of December 2008. I bought this stock in Nov 2000 for one of my accounts. My return, including dividend is 11.6% per year. I have bought some more in June of 2009 and this stock has increased by some 57% since that time. I have not had this stock long enough to collect dividends yet.
If you look at the growth figures for this stock, they are mostly a mixed bag. They range from good to ok to very low. For example, the 5 and 10 years growth in earnings, dividends and book value are good. The revenue growth is ok and the stock price and cash flow growth are low or in the case of the cash flow, negative. This is a retail business and the cash flow growth has fluctuated over the years, however, the 5 year running average for cash flow per share has generally gone up, but not always.
When I look at the Asset/Liability Ratios, I like what I see. Both the Liquidity Ratio and Asset/Liability Ratios are very good, with the Liquidity Ratios varying a lot over time. I like to see both these ratios at, at least, 1.50 and over the last few years, both these ratios have been there.
The Return on Equity (ROE) for 2008 was good at only 10.5%. The 5 running average ROE to December 2008 was also good at 12%. The ROE for the first quarter of 2009 was low and it comes in only at 5.6%; however, the year has just started. What I do not like about this first quarter is the low ROE and the fact that the cash flow from operations is negative. With regards to the cash flow, it is expected to improve by year end. I have updated my spreadsheet with the first quarter’s results.
Tomorrow, I talk about what the analysts say about this stock. I am quite satisfied with owning this stock. My return over the long term is great, even though we are currently in a recession. I bought more stock in June 2009 as I thought the price was very low and it turned out to be a good assumption.
They engaged in retail sales, financial services and petroleum sales. They own Canadian Tire Store, Gas Outlets, Parts Source Stores and Mark's Work Warehouse. The Canadian Tire stores offer a unique range of automotive, sports and leisure and home products. Its web site is corp.canadiantire.ca/. See my spreadsheet at www.spbrunner.com/stocks/ctc.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.
If you look at the growth figures for this stock, they are mostly a mixed bag. They range from good to ok to very low. For example, the 5 and 10 years growth in earnings, dividends and book value are good. The revenue growth is ok and the stock price and cash flow growth are low or in the case of the cash flow, negative. This is a retail business and the cash flow growth has fluctuated over the years, however, the 5 year running average for cash flow per share has generally gone up, but not always.
When I look at the Asset/Liability Ratios, I like what I see. Both the Liquidity Ratio and Asset/Liability Ratios are very good, with the Liquidity Ratios varying a lot over time. I like to see both these ratios at, at least, 1.50 and over the last few years, both these ratios have been there.
The Return on Equity (ROE) for 2008 was good at only 10.5%. The 5 running average ROE to December 2008 was also good at 12%. The ROE for the first quarter of 2009 was low and it comes in only at 5.6%; however, the year has just started. What I do not like about this first quarter is the low ROE and the fact that the cash flow from operations is negative. With regards to the cash flow, it is expected to improve by year end. I have updated my spreadsheet with the first quarter’s results.
Tomorrow, I talk about what the analysts say about this stock. I am quite satisfied with owning this stock. My return over the long term is great, even though we are currently in a recession. I bought more stock in June 2009 as I thought the price was very low and it turned out to be a good assumption.
They engaged in retail sales, financial services and petroleum sales. They own Canadian Tire Store, Gas Outlets, Parts Source Stores and Mark's Work Warehouse. The Canadian Tire stores offer a unique range of automotive, sports and leisure and home products. Its web site is corp.canadiantire.ca/. See my spreadsheet at www.spbrunner.com/stocks/ctc.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, July 28, 2009
Canadian Pacific Railway 2
I am continuing my review of this stock (TSX-CP) today as I have not reviewed it since I received the annual report for the end of December 2008. I have had stock in this company since October of 2006 and I have not made any money on it. The stock is depressed because of the current recession.
When I look at Insider Buying and Insider Selling on this stock, I find there is some Insider Buying, but not much. The CEO and some officers have slightly increased their holdings, but nothing significant. So this really does not tell us much.
When I look at the spreadsheet ratios, the current P/E at 10.3 for the end of December 2008 is low, but if the earnings estimate for 2009 is accurate, then the current P/E would be almost 16 and this is not particularly low. And it is not particularly low for this stock because the 5 year low average is 10. However, I see that the current dividend yield at 2.3% is higher than the 5 year average of 1.5%. Also, the Graham Price is more than 10% above the current price. The other thing that shows a low current price is the Price/Book Value ratio and the current one is only 70% of the ratio average for the last 10 years. So, except for the P/E, the current price looks relatively low.
When looking for analyst recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy rating, but close to a Hold. (See my site for information on analyst ratings.) As I said yesterday, most analysts have lowered their expected earnings for 2009 and 2010 since I last updated my spreadsheet in April 2009 for the last annual report. When analysts lower their earning estimates, a stock usually goes down.
When you look at the charts and compare this stock with the TSX Index and the Industrials Sub-Index, I see that you have to go to 5 years and 10 years for this stock to do as well as the TSX Index. It often beats the Industrials, but the charts show all these items quite close most of the time. Also, note that the charts do not consider dividends, so this has probably done as well and the TSX index when you consider dividends. It is not a bad stock, but not a great money maker. It is however, a solid dividend paying stock.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. northeast and midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is www.cp.ca. See my spreadsheet at www.spbrunner.com/stocks/cp.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 look at Insider Buying and Insider Selling on this stock, I find there is some Insider Buying, but not much. The CEO and some officers have slightly increased their holdings, but nothing significant. So this really does not tell us much.
When I look at the spreadsheet ratios, the current P/E at 10.3 for the end of December 2008 is low, but if the earnings estimate for 2009 is accurate, then the current P/E would be almost 16 and this is not particularly low. And it is not particularly low for this stock because the 5 year low average is 10. However, I see that the current dividend yield at 2.3% is higher than the 5 year average of 1.5%. Also, the Graham Price is more than 10% above the current price. The other thing that shows a low current price is the Price/Book Value ratio and the current one is only 70% of the ratio average for the last 10 years. So, except for the P/E, the current price looks relatively low.
When looking for analyst recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy rating, but close to a Hold. (See my site for information on analyst ratings.) As I said yesterday, most analysts have lowered their expected earnings for 2009 and 2010 since I last updated my spreadsheet in April 2009 for the last annual report. When analysts lower their earning estimates, a stock usually goes down.
When you look at the charts and compare this stock with the TSX Index and the Industrials Sub-Index, I see that you have to go to 5 years and 10 years for this stock to do as well as the TSX Index. It often beats the Industrials, but the charts show all these items quite close most of the time. Also, note that the charts do not consider dividends, so this has probably done as well and the TSX index when you consider dividends. It is not a bad stock, but not a great money maker. It is however, a solid dividend paying stock.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. northeast and midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is www.cp.ca. See my spreadsheet at www.spbrunner.com/stocks/cp.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, July 27, 2009
Canadian Pacific Railway
I am reviewing this stock (TSX-CP) today as I have not reviewed it since I received the annual report for the end of December 2008. I first bought this stock in 1986, but I have only tracked it on quicken since 1987. I sold this stock in 1999, and I made a profit of 5.4% per year including dividends. I bought this stock again in October of 2006 and since that time have I have made a negative profit of 4.25% per year, including dividends.
The stock is depressed because of the current recession. Most analysts have lowered their expected earnings for 2009 and 2010 since I last updated my spreadsheet in April 2009 for the last annual report. However, even with lowering their expectations on this stock, a number of analysts are still calling this stock a buy.
If you look at the growth figures for this stock, they are mostly a mixed bag. They range from good to ok to very low. For example, the 10 year grow in Revenue is lousy at just over 3% per year. The 5 year growth in Revenue at just over 6% is ok, but nothing to write home about. The 10 year growth in stock price plus dividends is very good at over 12% per year. However, the same growth for the last 5 years is low at just over 7%.
Moving on to look at the Asset/Liability Ratios; I find the Liquidity Ratio low, but over 1.00 and the Asset/Liability Ratio better at over 1.60. I have updated my spreadsheet for the first quarter of 2009 and both this ratios are now higher. I like to see both ratios at 1.50 or above and for this company, only the Asset/Liability Ratio does this.
The Return on Equity (ROE) for 2008 was good at only 10.3%. However, the 5 running average ROE to December 2008 was even better at 13.4%. The ROE for the first quarter of 2009 was low and it comes in only at 3.8%; however, the year has just started. This was the worse thing about the first quarter, the low ROE.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. northeast and midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is www.cp.ca. See my spreadsheet at www.spbrunner.com/stocks/cp.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 stock is depressed because of the current recession. Most analysts have lowered their expected earnings for 2009 and 2010 since I last updated my spreadsheet in April 2009 for the last annual report. However, even with lowering their expectations on this stock, a number of analysts are still calling this stock a buy.
If you look at the growth figures for this stock, they are mostly a mixed bag. They range from good to ok to very low. For example, the 10 year grow in Revenue is lousy at just over 3% per year. The 5 year growth in Revenue at just over 6% is ok, but nothing to write home about. The 10 year growth in stock price plus dividends is very good at over 12% per year. However, the same growth for the last 5 years is low at just over 7%.
Moving on to look at the Asset/Liability Ratios; I find the Liquidity Ratio low, but over 1.00 and the Asset/Liability Ratio better at over 1.60. I have updated my spreadsheet for the first quarter of 2009 and both this ratios are now higher. I like to see both ratios at 1.50 or above and for this company, only the Asset/Liability Ratio does this.
The Return on Equity (ROE) for 2008 was good at only 10.3%. However, the 5 running average ROE to December 2008 was even better at 13.4%. The ROE for the first quarter of 2009 was low and it comes in only at 3.8%; however, the year has just started. This was the worse thing about the first quarter, the low ROE.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. northeast and midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is www.cp.ca. See my spreadsheet at www.spbrunner.com/stocks/cp.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, July 24, 2009
Stantec Inc 2
I am continuing my review this stock (TSX-STN) today, as I had not reviewed it since I received the annual report for the end of December 2008. My spreadsheet has also been updated for the March 2009 quarter. As this is a non dividend paying stock, I only bought a small amount of it in August of 2008. To date I have lost about 2.5% per year on it. However, I am not giving up on this stock and I will maintain my position it.
When I look at Insider Buying and Insider Selling on this stock, I find there is more Insider Selling. However, this concerns a very small part of shares outstanding. If you look at Insider ownership, I find that over the past year the CEO, CFO and other officers have increases they holdings, but directors have decreased theirs. So in this connection, there is no strong signal at all.
The current P/E at 13is lower than the 5 year average of 26 and lower than the 5 year low 17. Considering this is a growth stock, a P/E of 13 is low. The current stock price is higher Graham Price. However, the current price is closer to the Graham price than it has been over the last 10 years. There is only a 12% difference with the average 5 year difference over 75%.
Whereas the 2008 Price/Book Value ratio is higher than the 10 years average, this ratio of March 2009 is lower than the 10 year average. When you look at the Price/Sales Ratio, I find that the current ratio is lower than the 5 year average, but very slightly higher than the 10 year average. All these ratios point to a somewhat good current price.
When looking for analyst recommendations, I find Strong Buy , Buy and Hold. The consensus would be a Buy rating. (See my site for information on analyst ratings.) Everyone seems to feel that this is a great company, with a great future. The reason for the Hold ratings as I can see it is that it is felt that this stock is fairly valued at the moment and has not got much room for growth in stock price over the next year. However, not everyone agrees with this, considering the number of Strong Buys and Buys on this stock.
As I see this stock, it is a great growth stock that is at a good price. I do not think the price is a bargain, but I do think it is reasonable. I intend to hold on to what I have.
Stantec Inc is a profitable Construction & Engineering company that trades on the TSX. It provides professional services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics, environmental sciences project management and project economics for clients, from initial concept and financial feasibility, to project completion and beyond. They work in North America, the Caribbean, United Kingdom, Australia, and New Zealand. Its web site is www.stantec.com. See my spreadsheet at www.spbrunner.com/stocks/stn.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 look at Insider Buying and Insider Selling on this stock, I find there is more Insider Selling. However, this concerns a very small part of shares outstanding. If you look at Insider ownership, I find that over the past year the CEO, CFO and other officers have increases they holdings, but directors have decreased theirs. So in this connection, there is no strong signal at all.
The current P/E at 13is lower than the 5 year average of 26 and lower than the 5 year low 17. Considering this is a growth stock, a P/E of 13 is low. The current stock price is higher Graham Price. However, the current price is closer to the Graham price than it has been over the last 10 years. There is only a 12% difference with the average 5 year difference over 75%.
Whereas the 2008 Price/Book Value ratio is higher than the 10 years average, this ratio of March 2009 is lower than the 10 year average. When you look at the Price/Sales Ratio, I find that the current ratio is lower than the 5 year average, but very slightly higher than the 10 year average. All these ratios point to a somewhat good current price.
When looking for analyst recommendations, I find Strong Buy , Buy and Hold. The consensus would be a Buy rating. (See my site for information on analyst ratings.) Everyone seems to feel that this is a great company, with a great future. The reason for the Hold ratings as I can see it is that it is felt that this stock is fairly valued at the moment and has not got much room for growth in stock price over the next year. However, not everyone agrees with this, considering the number of Strong Buys and Buys on this stock.
As I see this stock, it is a great growth stock that is at a good price. I do not think the price is a bargain, but I do think it is reasonable. I intend to hold on to what I have.
Stantec Inc is a profitable Construction & Engineering company that trades on the TSX. It provides professional services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics, environmental sciences project management and project economics for clients, from initial concept and financial feasibility, to project completion and beyond. They work in North America, the Caribbean, United Kingdom, Australia, and New Zealand. Its web site is www.stantec.com. See my spreadsheet at www.spbrunner.com/stocks/stn.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, July 23, 2009
Stantec Inc
I am reviewing this stock (TSX-STN) today as I have not reviewed it since I received the annual report for the end of December 2008. As this is a non dividend paying stock, I only bought a small amount of it in August of 2008. To date I have lost about 2.5% per year on it. However, I am not giving up on this stock and I will maintain my position it.
As in the case of yesterday’s stock, if you look at the growth figures for this stock, most are good. The only one that is not is the earnings for the last 5 years. This is because of the drop in earnings for 2008. However, one bad earnings year means nothing.
Moving on to look at is the Asset/Liability Ratios; I find these quite good. I have updated my spreadsheet for the first quarter of 2009 and these good ratios are maintained. I like to see both ratios at 1.50 or above and for this company both the Liquidity Ratio and the Asset/Liability Ratio have achieve this.
The Return on Equity (ROE) for 2008 was low at only 5.4%. However, the 5 running average ROE to December 2008 was 11.7%. The ROE for the first quarter of 2009 was again higher at 14.6%. The bad thing about this first quarter is the negative Cash Flow from Operations. When this is negative, you can not really calculate an Accrual Ratio. However, the Accrual Ratio for 2008 was negative and was just below zero.
This company is in construction and Engineering and it should do well once the economy has recovered. The company has a good history of making money. I have read a number of articles on this company and it is generally very well thought of. Tomorrow, I will look into what the analyst say about buying this stock.
Stantec Inc is a profitable Construction & Engineering company that trades on the TSX. It provides professional services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics, environmental sciences project management and project economics for clients, from initial concept and financial feasibility, to project completion and beyond. They work in North America, the Caribbean, United Kingdom, Australia, and New Zealand. Its web site is www.stantec.com. See my spreadsheet at www.spbrunner.com/stocks/stn.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.
As in the case of yesterday’s stock, if you look at the growth figures for this stock, most are good. The only one that is not is the earnings for the last 5 years. This is because of the drop in earnings for 2008. However, one bad earnings year means nothing.
Moving on to look at is the Asset/Liability Ratios; I find these quite good. I have updated my spreadsheet for the first quarter of 2009 and these good ratios are maintained. I like to see both ratios at 1.50 or above and for this company both the Liquidity Ratio and the Asset/Liability Ratio have achieve this.
The Return on Equity (ROE) for 2008 was low at only 5.4%. However, the 5 running average ROE to December 2008 was 11.7%. The ROE for the first quarter of 2009 was again higher at 14.6%. The bad thing about this first quarter is the negative Cash Flow from Operations. When this is negative, you can not really calculate an Accrual Ratio. However, the Accrual Ratio for 2008 was negative and was just below zero.
This company is in construction and Engineering and it should do well once the economy has recovered. The company has a good history of making money. I have read a number of articles on this company and it is generally very well thought of. Tomorrow, I will look into what the analyst say about buying this stock.
Stantec Inc is a profitable Construction & Engineering company that trades on the TSX. It provides professional services in planning, engineering, architecture, interior design, landscape architecture, surveying and geomatics, environmental sciences project management and project economics for clients, from initial concept and financial feasibility, to project completion and beyond. They work in North America, the Caribbean, United Kingdom, Australia, and New Zealand. Its web site is www.stantec.com. See my spreadsheet at www.spbrunner.com/stocks/stn.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, July 22, 2009
Leon's Furniture 2
I am continuing my review this stock (TSX-LNF) today. As I said yesterday, I have not reviewed it since I received the annual report for the end of December 2008. I have held this stock since 2006. I have faith in this company for the long term and I will continue to hold this stock. I first bought it because I read a recommendation on this stock and I liked what they said.
When I look at Insider Buying and Insider Selling on this stock, I find there is more Insider Buying. There is not much of each going on. Since the Leon family owns some 68% of this stock, there is probably not much room for them to buy more in any case. I do not mind holding stock owned by a family. They often take great care of their companies as they have much to lose if they do not.
Next, I looked at the spreadsheet ratios. I find that the current yield of 2.8% is slightly higher than the 5 year average yield of 2.3%. The current P/E at 12.2 is higher than the 5 year average of 14.5 and at about the same as the 5 year low. The current stock price and the Graham Price are about the same. All these ratios point to a somewhat good current price. However, the current Price/Book Value ratio is only about 70% of the 10 year average and this is a strong suggestion that the current price is good.
When looking for analyst recommendations, I can only find two, one a Strong Buy and one a Hold. (See my site for information on analyst ratings.) Neither analyst thinks that 2009or 2010 will be great years for this company. However, they seem to suggest the earnings will go back to 2007 earnings. This is not bad.
I do not really see any problems with this stock. We are in a recession, so it is only natural that a furniture sales company will see some earnings problems. But recessions do not last forever and I will hold on to my shares in this company.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Its web site is www.leon.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.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 look at Insider Buying and Insider Selling on this stock, I find there is more Insider Buying. There is not much of each going on. Since the Leon family owns some 68% of this stock, there is probably not much room for them to buy more in any case. I do not mind holding stock owned by a family. They often take great care of their companies as they have much to lose if they do not.
Next, I looked at the spreadsheet ratios. I find that the current yield of 2.8% is slightly higher than the 5 year average yield of 2.3%. The current P/E at 12.2 is higher than the 5 year average of 14.5 and at about the same as the 5 year low. The current stock price and the Graham Price are about the same. All these ratios point to a somewhat good current price. However, the current Price/Book Value ratio is only about 70% of the 10 year average and this is a strong suggestion that the current price is good.
When looking for analyst recommendations, I can only find two, one a Strong Buy and one a Hold. (See my site for information on analyst ratings.) Neither analyst thinks that 2009or 2010 will be great years for this company. However, they seem to suggest the earnings will go back to 2007 earnings. This is not bad.
I do not really see any problems with this stock. We are in a recession, so it is only natural that a furniture sales company will see some earnings problems. But recessions do not last forever and I will hold on to my shares in this company.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Its web site is www.leon.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.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, July 21, 2009
Leon's Furniture
I am reviewing this stock (TSX-LNF) today as I have not reviewed it since I received the annual report for the end of December 2008. I have held this stock since 2006 and have just about broken even on it. That is no loss, but no profit. I still have faith in this company for the long term and I will continue to hold this stock. I first bought it because I read a recommendation on this stock and I liked what they said.
Compared to the stock I reviewed yesterday, if you look at the growth figures for this stock, all are good. The only one that does not appear to be good is the growth in Cash Flow for the last 5 years. However, the Cash Flow 5 years ago was unusually good and therefore the calculations are thrown off. However, if the Cash Flow for that year were more normal, the 5 year growth in Cash Flow would be good also. The other thing to mention is dividends. Every few years, when it can afford too, this company throws in an extra dividend payment. Excluding the extra dividends, the growth in dividends is very good at about 15% on average a year. However, the dividend yield on this stock tends to be low at around or below 2%.
Moving on to look at is the Asset/Liability Ratios; I find these quite high. I like to see both ratios at 1.50 or above and for this company both the Liquidity Ratio and the Asset/Liability Ratio have been much higher.
A good thing to note is the Return on Equity (ROE). The 5 running average ROE to December 2008 was 18.4%. The ROE for the first quarter of 2009 was lower than usual at 9.6%. It was not a great quarter. The one thing that I do not like on this stock is the high Accrual Ratio. For the first quarter of 2009, it is very high at 11.09. However, this is probably not an accurate reading as the Cash Flow from Operations was negative. The lack of Cash Flow is in itself a negative.
The good things about this stock are that it is easy to understand what they do for a living, the good dividend growth and the extra dividend payments they have paid. The other thing is that ever though we are in a recession, if you had held this stock for 5 years, you would have made a profit. Tomorrow, I will look into what the analyst say about buying this stock.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Its web site is www.leon.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.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.
Compared to the stock I reviewed yesterday, if you look at the growth figures for this stock, all are good. The only one that does not appear to be good is the growth in Cash Flow for the last 5 years. However, the Cash Flow 5 years ago was unusually good and therefore the calculations are thrown off. However, if the Cash Flow for that year were more normal, the 5 year growth in Cash Flow would be good also. The other thing to mention is dividends. Every few years, when it can afford too, this company throws in an extra dividend payment. Excluding the extra dividends, the growth in dividends is very good at about 15% on average a year. However, the dividend yield on this stock tends to be low at around or below 2%.
Moving on to look at is the Asset/Liability Ratios; I find these quite high. I like to see both ratios at 1.50 or above and for this company both the Liquidity Ratio and the Asset/Liability Ratio have been much higher.
A good thing to note is the Return on Equity (ROE). The 5 running average ROE to December 2008 was 18.4%. The ROE for the first quarter of 2009 was lower than usual at 9.6%. It was not a great quarter. The one thing that I do not like on this stock is the high Accrual Ratio. For the first quarter of 2009, it is very high at 11.09. However, this is probably not an accurate reading as the Cash Flow from Operations was negative. The lack of Cash Flow is in itself a negative.
The good things about this stock are that it is easy to understand what they do for a living, the good dividend growth and the extra dividend payments they have paid. The other thing is that ever though we are in a recession, if you had held this stock for 5 years, you would have made a profit. Tomorrow, I will look into what the analyst say about buying this stock.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Its web site is www.leon.ca. See my spreadsheet at www.spbrunner.com/stocks/lnf.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, July 20, 2009
BCE Inc 2
I am continuing my review this stock (TSX-BCE) today as I was asked to. I have updated my spreadsheet for the latest published financial statements of March 2009. I have had this stock since 1982 and it is difficult to determine what profit I have made on this stock. I have only tracked this stock in Quicken since 1 January 1988. Because of the separation of Nortel, it is difficult to track what I have made. However, putting both stocks together, I have made a return of 9.7% since 1988 on this and Nortel stock. After getting Nortel from Bell, I sold ½ at $85 and ½ at $2.57.
This stock is in the Telecom industry and that industry considered to be a tough place to make money. However, a lot of people have faith in the current management installed by the Ontario Teachers’ Pension Plan when they were going to take this company private. I also like to look at Insider Buying and Insider Selling. There is very little of either going on over the past year, so we learn nothing here. However, the CEO and CFO have increased their investments in this company, while other officers’ and directors have decreased theirs.
In looking at the spreadsheet ratios, the current yield of 6.3% is better than the 5 year average of 4.8%. The P/E ratio currently at 10 is better than the 5 year average of 15 and the 5 year low average of 12.8. Also, the current Price/Book Value ratio is less and 80% of the 10 year average. The last thing to mention is the Graham Price is almost 30% above the current price. All these things point to a good current price.
There are Strong Buy ratings, Buy ratings and Hold ratings on this stock. The consensus rating would probably be a Buy. (See my site for information on analyst ratings.)
In looking at the charts, I compared this stock to the TSX index and the Utility Index. Except for the YTD period, both these indexes have done better than this stock. The one thing that is very noticeable in these charts is that this stock had a huge run up, probably due to Nortel, in the last bull market and it heavily crashed when that bubble blew (about 1999/2000).
BCE Inc. is a communications company. BCE provides local telephone, long distance, wireless communications, internet access, data, video and other services to residential and business customers. Its web site is www.bce.ca. See my spreadsheet at www.spbrunner.com/stocks/bce.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 is in the Telecom industry and that industry considered to be a tough place to make money. However, a lot of people have faith in the current management installed by the Ontario Teachers’ Pension Plan when they were going to take this company private. I also like to look at Insider Buying and Insider Selling. There is very little of either going on over the past year, so we learn nothing here. However, the CEO and CFO have increased their investments in this company, while other officers’ and directors have decreased theirs.
In looking at the spreadsheet ratios, the current yield of 6.3% is better than the 5 year average of 4.8%. The P/E ratio currently at 10 is better than the 5 year average of 15 and the 5 year low average of 12.8. Also, the current Price/Book Value ratio is less and 80% of the 10 year average. The last thing to mention is the Graham Price is almost 30% above the current price. All these things point to a good current price.
There are Strong Buy ratings, Buy ratings and Hold ratings on this stock. The consensus rating would probably be a Buy. (See my site for information on analyst ratings.)
In looking at the charts, I compared this stock to the TSX index and the Utility Index. Except for the YTD period, both these indexes have done better than this stock. The one thing that is very noticeable in these charts is that this stock had a huge run up, probably due to Nortel, in the last bull market and it heavily crashed when that bubble blew (about 1999/2000).
BCE Inc. is a communications company. BCE provides local telephone, long distance, wireless communications, internet access, data, video and other services to residential and business customers. Its web site is www.bce.ca. See my spreadsheet at www.spbrunner.com/stocks/bce.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, July 17, 2009
BCE Inc
I am reviewing this stock (TSX-BCE) today as I was asked to. I have updated my spreadsheet for the latest published financial statements of March 2009. I have had this stock since 1982 and it is difficult to determine what profit I have made on this stock. A lot of things have happen since I bought it. The biggest thing was the separation of Nortel stock from BCE. This happened when 2000when this stock and especially Nortel was in a free fall, so it is hard to value what Nortel was really worth when I got that stock.
The one thing that is certain is that I have had a lot of dividend income from this stock. It would appear that the dividend is secure. They are paying about 20% of the cash flow and this should not be a problem. They also raised the dividends by 4% for 2009 and this is good.
If you look at the growth figures for this stock, none are particularly good. The only one that is decent is the dividend growth at 4% per year for the last 5 years. This is higher than our inflation rate. However, the 10 year growth on dividends is less than 1% per year and this is not higher than inflation over the last 10 years. The growth in Book Value at 7% per year over the last 5 years is not bad either. Not the greatest of growth in book value, but not bad. However, here again, the 10 year figure is just below 0% growth and this is awful.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio is very low at 0.83. However, this is about average for the liquidity ratio on this stock. The Asset/Liability Ratio is much better at 1.57. This is a bit better than the 5 year average. For both these ratios, I would prefer to see a ratio of at least 1.50.
A good thing to note is the Return on Equity (ROE). The 5 running average ROE to December 2008 was 15.8%. The ROE for December 2008 was low at 6.5%, but the ROE for March 2009 quarter is 10.7%. Another good thing is the low Accrual Ratio. It was negative for 2008 and this is very good. It is still low for the March 2009 quarter.
I must admit that I have not said many good things about this stock. Sometimes I wonder if I should hold on to my shares. However, they are less than 1% of my portfolio and I have held them since 1982, which makes it one of my earliest purchases of stock.
On Monday, I will look into what the analyst say about buying this stock.
BCE Inc. is a communications company. BCE provides local telephone, long distance, wireless communications, internet access, data, video and other services to residential and business customers. Its web site is www.bce.ca. See my spreadsheet at www.spbrunner.com/stocks/bce.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 one thing that is certain is that I have had a lot of dividend income from this stock. It would appear that the dividend is secure. They are paying about 20% of the cash flow and this should not be a problem. They also raised the dividends by 4% for 2009 and this is good.
If you look at the growth figures for this stock, none are particularly good. The only one that is decent is the dividend growth at 4% per year for the last 5 years. This is higher than our inflation rate. However, the 10 year growth on dividends is less than 1% per year and this is not higher than inflation over the last 10 years. The growth in Book Value at 7% per year over the last 5 years is not bad either. Not the greatest of growth in book value, but not bad. However, here again, the 10 year figure is just below 0% growth and this is awful.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio is very low at 0.83. However, this is about average for the liquidity ratio on this stock. The Asset/Liability Ratio is much better at 1.57. This is a bit better than the 5 year average. For both these ratios, I would prefer to see a ratio of at least 1.50.
A good thing to note is the Return on Equity (ROE). The 5 running average ROE to December 2008 was 15.8%. The ROE for December 2008 was low at 6.5%, but the ROE for March 2009 quarter is 10.7%. Another good thing is the low Accrual Ratio. It was negative for 2008 and this is very good. It is still low for the March 2009 quarter.
I must admit that I have not said many good things about this stock. Sometimes I wonder if I should hold on to my shares. However, they are less than 1% of my portfolio and I have held them since 1982, which makes it one of my earliest purchases of stock.
On Monday, I will look into what the analyst say about buying this stock.
BCE Inc. is a communications company. BCE provides local telephone, long distance, wireless communications, internet access, data, video and other services to residential and business customers. Its web site is www.bce.ca. See my spreadsheet at www.spbrunner.com/stocks/bce.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, July 16, 2009
Saputo Inc 2
I am continuing my review this stock (TSX-SAP) today as I have received its annual report. I currently own this stock and it has done well for me. It is easy to understand what this company does for a living. They make and sell cheese and other dairy products. Part of what got us into economic trouble lately has been that people bought things that did not understand. Take, for instance, mortgage derivatives like collateralized mortgage obligations (CMOs). People did not really know what they were buying.
The thing is that you should never, ever, buy something that you do not understand. Also, buying any sort of derivative product can be daunting and much harder to understand than the underlying product. For example, stock options are harder to understand that stocks. I never buy any derivative product, including stock options.
As far as insider selling and insider buying goes, there has been over the past year a lot of insider selling by the CEO. However, since it seems it was all stock options, this does not tell us anything. This selling took place last fall.
The next place to go is ratios. The P/E ratio on this stock currently around 15.7 is lower than the 5 year average on the closing price and is about the same as the 5 year average low. So this is a reasonable P/E. The yield on this stock of 2.3% is higher than the 5 year average of 1.98% so it also has a reasonable yield. The next thing is the Graham Price. The current price is some 30% above the Graham Price. Since this is not only a dividend paying stock, but also a growth stock, it is not surprising. However, the 10 year average for the price above Graham Price is 46%. So the difference is more narrow that usual.
The next ratio I looked at was the Price/Book Value Ratio. The current ratio of 2.56 is 90% of the 10 year average of 2.79. It shows that the current price is reasonable, but to show a great buy, it would have to be 80% of the 10 year average. The last ratio is the Price/Sales ratio. This P/S is at .79 and this is less than the 10 year average of .91 and the 5 year average of .98.
The Globe Investor site gives this stock a 4 star rating. When I look at the analysts’ ratings, I find Strong Buy and Buy ratings on this stock. The consensus rating would seem to be a Buy. (See my site for information on analyst ratings.)
When looking at the charts, I find that this company over the last 3, 5 and 10 year periods, has preformed better than both the TSX and the Consumer Staples Index. Over shorter periods, the results are rather mixed.
To sum up this report, most ratios point to the stock price as being reasonable. It would seem that most analyst like this stock as I could find no other ratings besides the above Buy and Strong Buy ratings. I expect to make a reasonable return on my investment in this stock over the long term. The only current thing that worries me is the high Accrual Ratio that I talked about yesterday.
This company is a dairy processor and cheese producer in Canada and USA. Its web site is www.saputo.com. See my spreadsheet at www.spbrunner.com/stocks/sap.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 thing is that you should never, ever, buy something that you do not understand. Also, buying any sort of derivative product can be daunting and much harder to understand than the underlying product. For example, stock options are harder to understand that stocks. I never buy any derivative product, including stock options.
As far as insider selling and insider buying goes, there has been over the past year a lot of insider selling by the CEO. However, since it seems it was all stock options, this does not tell us anything. This selling took place last fall.
The next place to go is ratios. The P/E ratio on this stock currently around 15.7 is lower than the 5 year average on the closing price and is about the same as the 5 year average low. So this is a reasonable P/E. The yield on this stock of 2.3% is higher than the 5 year average of 1.98% so it also has a reasonable yield. The next thing is the Graham Price. The current price is some 30% above the Graham Price. Since this is not only a dividend paying stock, but also a growth stock, it is not surprising. However, the 10 year average for the price above Graham Price is 46%. So the difference is more narrow that usual.
The next ratio I looked at was the Price/Book Value Ratio. The current ratio of 2.56 is 90% of the 10 year average of 2.79. It shows that the current price is reasonable, but to show a great buy, it would have to be 80% of the 10 year average. The last ratio is the Price/Sales ratio. This P/S is at .79 and this is less than the 10 year average of .91 and the 5 year average of .98.
The Globe Investor site gives this stock a 4 star rating. When I look at the analysts’ ratings, I find Strong Buy and Buy ratings on this stock. The consensus rating would seem to be a Buy. (See my site for information on analyst ratings.)
When looking at the charts, I find that this company over the last 3, 5 and 10 year periods, has preformed better than both the TSX and the Consumer Staples Index. Over shorter periods, the results are rather mixed.
To sum up this report, most ratios point to the stock price as being reasonable. It would seem that most analyst like this stock as I could find no other ratings besides the above Buy and Strong Buy ratings. I expect to make a reasonable return on my investment in this stock over the long term. The only current thing that worries me is the high Accrual Ratio that I talked about yesterday.
This company is a dairy processor and cheese producer in Canada and USA. Its web site is www.saputo.com. See my spreadsheet at www.spbrunner.com/stocks/sap.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, July 15, 2009
Saputo Inc
I am reviewing this stock (TSX-SAP) today as I have received its annual report. I first bought this stock in 2006. I bought more of this stock it in 2007. To date, including dividends, I have a return of 10% per year. This stock has done fairly well considering we are in a recession. Just over 2% of my return is dividend income. The great thing about this stock is the growth in dividends. The 10 year growth at 38% is much better than the 5 year growth of 18%. Often in a recession, dividend growth slows down.
This first thing I want to look at is the growth figures. For things like Revenue, Dividends, Earnings, Stock Price, Book Value and Cash Flow, the 5 year and 10 year figures for this stock are all good. The thing that I noticed was that the 10 year growth figures are better than the 5 year growth figures. The other thing is that the earnings growth for 5 years is ok, but not great.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio is only 1.17. That means that the current assets can cover the current liabilities, but I would prefer a ratio of 1.50 or higher. Both the 5 year and 10 year averages are higher and this is the first time that I can see that this ratio has fall below 1.50. Asset/Liability Ratio is much better at 2.29. The thing to say is that both this ratios are below the 5 year averages.
To March 2009, the last annual report date, the Return on Equity (ROE) ratio looked good with a 5 year running average of 15.7%. The ROE for March 2009 was 14.1%. Both these ratios are very good.
There are some great things about this stock. Most of the growth figures and ratios are great, but there is one thing that concerns me and that is the Accrual Ratio, which is very high at 16.2%. The good thing about this ratio is that the Cash from Operations is higher than the net income, but there is not enough difference to cover investments. Sometimes, a high Accrual Ratio could call into question the earnings. A high Accrual Ratio can also signal that the stock price is about to fall.
Tomorrow, I will look into what the analyst say about buying this stock.
This company is a dairy processor and cheese producer in Canada and USA. Its web site is www.saputo.com. See my spreadsheet at www.spbrunner.com/stocks/sap.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 first thing I want to look at is the growth figures. For things like Revenue, Dividends, Earnings, Stock Price, Book Value and Cash Flow, the 5 year and 10 year figures for this stock are all good. The thing that I noticed was that the 10 year growth figures are better than the 5 year growth figures. The other thing is that the earnings growth for 5 years is ok, but not great.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio is only 1.17. That means that the current assets can cover the current liabilities, but I would prefer a ratio of 1.50 or higher. Both the 5 year and 10 year averages are higher and this is the first time that I can see that this ratio has fall below 1.50. Asset/Liability Ratio is much better at 2.29. The thing to say is that both this ratios are below the 5 year averages.
To March 2009, the last annual report date, the Return on Equity (ROE) ratio looked good with a 5 year running average of 15.7%. The ROE for March 2009 was 14.1%. Both these ratios are very good.
There are some great things about this stock. Most of the growth figures and ratios are great, but there is one thing that concerns me and that is the Accrual Ratio, which is very high at 16.2%. The good thing about this ratio is that the Cash from Operations is higher than the net income, but there is not enough difference to cover investments. Sometimes, a high Accrual Ratio could call into question the earnings. A high Accrual Ratio can also signal that the stock price is about to fall.
Tomorrow, I will look into what the analyst say about buying this stock.
This company is a dairy processor and cheese producer in Canada and USA. Its web site is www.saputo.com. See my spreadsheet at www.spbrunner.com/stocks/sap.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, July 14, 2009
Matrikon Inc 2
I am continuing my review of this stock (TSX-MTK) from yesterday. It is one of the ones for which I had done a spreadsheet when I wanted a small cap for the TFSA account. It is the one I ended up buying. So, far I have lost some $10.00 on this stock since I bought it mid January. This comes to an annualized loss of 4.25%. This company, like Pulse Seismic (TSX-PSD) has suspended their dividends. The other small cap of McCoy Corp (TSX- MCB), so far, has only reduced their dividends. All three companies are feeling the pain of the current recession.
Yesterday, I put up my spreadsheet that includes the 3rd quarterly report of May 2009. The annual report on this stock is dated in August each year. In looking at what different sites say about the P/E on this stock, I find they range from 6 to 13. What I get is around 7, with a forward P/E around 8. I get a 5 year average P/E on the closing price of 25 and a 5 year average P/E on the Low Price of 16.4.
So, the P/E that I calculate shows that the current price is relatively, good. My trailing P/E is even lower at 6.3 and 7 for 2009 and 2010. However, do not forget that the P/E is based on earnings estimates and the trailing P/E is based on actual earnings for 2009. The current Price/Book Value is only 40% of the 10 year average, so this points to a good current stock price. Also, the Graham Price for 2009 is some 30% higher than the current stock price. This also points to a good stock price.
However, if you look at the Price/Sales ratio, the one for 2008 is 1.90. The 5 and 10 year averages are 1.65 and 1.31 respectively. So, this shows that the current price is high. As with most ratios, the lower the ratio, the better the stock price. The other negative ratio is the Accrual Ratio and at over 10%, this points to sell a recommendation rather than a buy recommendation. The other problem with the Accrual Ratio is that net income is positive and Cash from Operations is negative. When cash from operations is negative, this is never good.
When I look at the analysts’ recommendations, what I see are calls from Strong Buys to Holds, with the consensus recommendation being a buy. (See my site for information on analyst ratings.) What probably is the best recommendation is the insider buying. There are all types of insider buying over the last year, so it is broadly based with CEO, CFO, officers and directors all buying and increasing their stake in this company. Currently, I will continue to hold my shares.
Matrikon Inc. is engaged in the sale of software and information technology professional services to industrial facilities. Its web site is www.matrikon.com. See my spreadsheet at www.spbrunner.com/stocks/mtk.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.
Yesterday, I put up my spreadsheet that includes the 3rd quarterly report of May 2009. The annual report on this stock is dated in August each year. In looking at what different sites say about the P/E on this stock, I find they range from 6 to 13. What I get is around 7, with a forward P/E around 8. I get a 5 year average P/E on the closing price of 25 and a 5 year average P/E on the Low Price of 16.4.
So, the P/E that I calculate shows that the current price is relatively, good. My trailing P/E is even lower at 6.3 and 7 for 2009 and 2010. However, do not forget that the P/E is based on earnings estimates and the trailing P/E is based on actual earnings for 2009. The current Price/Book Value is only 40% of the 10 year average, so this points to a good current stock price. Also, the Graham Price for 2009 is some 30% higher than the current stock price. This also points to a good stock price.
However, if you look at the Price/Sales ratio, the one for 2008 is 1.90. The 5 and 10 year averages are 1.65 and 1.31 respectively. So, this shows that the current price is high. As with most ratios, the lower the ratio, the better the stock price. The other negative ratio is the Accrual Ratio and at over 10%, this points to sell a recommendation rather than a buy recommendation. The other problem with the Accrual Ratio is that net income is positive and Cash from Operations is negative. When cash from operations is negative, this is never good.
When I look at the analysts’ recommendations, what I see are calls from Strong Buys to Holds, with the consensus recommendation being a buy. (See my site for information on analyst ratings.) What probably is the best recommendation is the insider buying. There are all types of insider buying over the last year, so it is broadly based with CEO, CFO, officers and directors all buying and increasing their stake in this company. Currently, I will continue to hold my shares.
Matrikon Inc. is engaged in the sale of software and information technology professional services to industrial facilities. Its web site is www.matrikon.com. See my spreadsheet at www.spbrunner.com/stocks/mtk.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, July 13, 2009
Matrikon Inc
Now back to the small cap stocks that I looked at in the early part of this year. I was looking for one to soak up the remaining cash in my TFSA after buying Shoppers Drug Mart for this account. This stock (TSX-MTK) is one of the ones for which I had done a spreadsheet and it is the one I ended up buying.
The first thing I would like to talk about is dividends. This company, like Pulse Seismic (TSX-PSD) has suspended their dividends. The other small cap of McCoy Corp (TSX- MCB), so far, has only reduced their dividends. All three companies are feeling the pain of the current recession.
This first thing to look at is the growth figures. For things like Revenue, Earnings, Stock Price, Book Value and Cash Flow, the 5 year and 10 year figures for this stock are good. The one caution is that when you look at Revenue per share, the 5 year figures are not great at 5% increase per year. The last thing to mention is that there is no growth in dividends. This company only started to pay dividends in 2008. For the 4th quarter of this year, they have suspended dividends.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio and the Asset/Liability Ratio we have ratios way above 1.50. The current ratios are a bit below the long term ratios, but they are both still very good.
The last thing I want to mention if the Return on Equity (ROE). This ratio has varied greatly on this stock. To August 2008, the last annual report date, this ratio looked good with a 5 year running average of 10.3%. But this figure hides the wide variation it has. For example, the ROE for 2007 was -5% and the ROE for 2008 was 20.1%. The interim one for the 3rd quarter ending in May 2009 is just 5.7%.
There are some great things about this stock and some things that say caution. Most of the growth figures and ratios are good, but there are some problems. The most notable thing on this stock is the insider buying. Tomorrow, I will look at what the analysts are saying about this stock. As it is a small cap, there will not be many analysts following this stock.
Matrikon Inc. is engaged in the sale of software and information technology professional services to industrial facilities. Its web site is www.matrikon.com. See my spreadsheet at www.spbrunner.com/stocks/mtk.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 would like to talk about is dividends. This company, like Pulse Seismic (TSX-PSD) has suspended their dividends. The other small cap of McCoy Corp (TSX- MCB), so far, has only reduced their dividends. All three companies are feeling the pain of the current recession.
This first thing to look at is the growth figures. For things like Revenue, Earnings, Stock Price, Book Value and Cash Flow, the 5 year and 10 year figures for this stock are good. The one caution is that when you look at Revenue per share, the 5 year figures are not great at 5% increase per year. The last thing to mention is that there is no growth in dividends. This company only started to pay dividends in 2008. For the 4th quarter of this year, they have suspended dividends.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio and the Asset/Liability Ratio we have ratios way above 1.50. The current ratios are a bit below the long term ratios, but they are both still very good.
The last thing I want to mention if the Return on Equity (ROE). This ratio has varied greatly on this stock. To August 2008, the last annual report date, this ratio looked good with a 5 year running average of 10.3%. But this figure hides the wide variation it has. For example, the ROE for 2007 was -5% and the ROE for 2008 was 20.1%. The interim one for the 3rd quarter ending in May 2009 is just 5.7%.
There are some great things about this stock and some things that say caution. Most of the growth figures and ratios are good, but there are some problems. The most notable thing on this stock is the insider buying. Tomorrow, I will look at what the analysts are saying about this stock. As it is a small cap, there will not be many analysts following this stock.
Matrikon Inc. is engaged in the sale of software and information technology professional services to industrial facilities. Its web site is www.matrikon.com. See my spreadsheet at www.spbrunner.com/stocks/mtk.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, July 10, 2009
False Economy, Alan Beattie
I should first remark on the title. As far as I can see, it was just chosen to get attention. I can see no other reason for it. For books on the economy to sell nowadays, it seems that they must be given a title that has a negative connotation about the economy or about capitalism.
This book is a bit of a history of money, markets and finance. However, there are better books on these subjects. If you want to learn anything about these subjects, you would be better off reading such recent books as the Ascent of Money by Niall Ferguson. In fact, any book by Niall Ferguson would be a great choice. Ferguson is a much better informed writer and he writes much better books.
However, one thing that Alan Beattie does point out that we would do well to remember is that it is not just Anglo-Saxon or Jewish people who do well in finance. It seems through out history that minorities in many societies have created thriving business communities. Minorities that have done well include many different ethnic groups and different religious groups. It is often the restrictions place on minorities that seem to account for this more than anything else does.
He also talks about theories of agriculture and slavery. He states that when land is plentiful, plantation owners would not be able to sit on their verandas and drink mint juleps if it had not been for slavery. If the laborers had been free, they would have simply left to start their own farms.
If you are like me and have already read everything that Niall Ferguson had written, then you might want to read this book. Alan Beattie does have a slightly different perspective on things. But, if you are limited in the books you can read, for what ever reason, then I would definitely suggest you read Niall Ferguson instead of this author. I have reviewed on my site Niall Ferguson’s latest book, Ascent of Money.
Alan Beattie has an essay on development at World Bank. There is a review of this book at Financial Times . He is also on You Tube.
This book review and other books I have reviewed are on my website at Book Reviews. Also on my website is how to find this book on Amazon if you care to purchase it. See Beattie.
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 book is a bit of a history of money, markets and finance. However, there are better books on these subjects. If you want to learn anything about these subjects, you would be better off reading such recent books as the Ascent of Money by Niall Ferguson. In fact, any book by Niall Ferguson would be a great choice. Ferguson is a much better informed writer and he writes much better books.
However, one thing that Alan Beattie does point out that we would do well to remember is that it is not just Anglo-Saxon or Jewish people who do well in finance. It seems through out history that minorities in many societies have created thriving business communities. Minorities that have done well include many different ethnic groups and different religious groups. It is often the restrictions place on minorities that seem to account for this more than anything else does.
He also talks about theories of agriculture and slavery. He states that when land is plentiful, plantation owners would not be able to sit on their verandas and drink mint juleps if it had not been for slavery. If the laborers had been free, they would have simply left to start their own farms.
If you are like me and have already read everything that Niall Ferguson had written, then you might want to read this book. Alan Beattie does have a slightly different perspective on things. But, if you are limited in the books you can read, for what ever reason, then I would definitely suggest you read Niall Ferguson instead of this author. I have reviewed on my site Niall Ferguson’s latest book, Ascent of Money.
Alan Beattie has an essay on development at World Bank. There is a review of this book at Financial Times . He is also on You Tube.
This book review and other books I have reviewed are on my website at Book Reviews. Also on my website is how to find this book on Amazon if you care to purchase it. See Beattie.
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, July 9, 2009
Melcor Development 2
I am continuing my review of this stock (MRD-TSX). I want to note a couple of things. The company has cut their dividend in 2009 by just over 50%. The other thing is that this stock has been removed from the TSX Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices).
I first bought this company in 2008 and I have lost some 41% on my investment. When buying stock, you never know what the future holds, so you should always aim for a reasonable price when you buy a stock. You cannot do any better. The stock market goes up and the stock market goes down. I believe that this stock will recover and over the long term provide me with a reasonable return.
The first thing I like to look at is Inside Buying and Selling. For this stock, there has only been insider buying. The CFO, some other officers of the company and some directors have all increased their stake in this company. This is indeed a positive sign. The buying has been between November 2008 and today. The buying started after there was a big fall in the price of this stock in the later part of 2008.
In looking at the P/E ratio, it depends on where you look what this figure is. The Globe Investor uses the earnings over the past year to determine a P/E and for this company that P/E is low. If you look at my spreadsheet, it is quite high at 16 for 2009 because of the earning estimate for this year. The one for 2010, or the future P/E ratio on my spreadsheet is not bad at 10.6. There is a big difference in what people expect for earnings in 2009 and 2010, so this ratio is problematic.
Also, for this stock, I do not think the yield helps much as there was recently a dividend decrease and this brings the yield into line with the average. Better places to look to see if there is value in the current price is the Graham Price and the Price/Book Value. Even though the Graham Price is dependent on earning estimates, the stock price is significantly below the Graham Price by over 30% for 2009 and rising to over 45% in 2010.
In looking at the P/BV ratio, I find that the current ratio is only 36% of the 10 year average. Any thing below 80% of the 10 year average is pointing to a very good stock price. However, the Graham Price and P/BV depend heavily on the current book value. The future book value will depend, of course, on this company pulling out of this current recession in tact.
So now, it is time to look at what the analysts are recommending. There are few analysts following this stock. The only recommendations I can find are a Buy. (See my site for information on analyst ratings.) To me this seems a reasonable rating. The company has taken necessary steps to conserve its cash. They also show a vote of confidence in buying shares.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi- family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is www.melcor.ca. See my spreadsheet at www.spbrunner.com/stocks/mrd.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 company in 2008 and I have lost some 41% on my investment. When buying stock, you never know what the future holds, so you should always aim for a reasonable price when you buy a stock. You cannot do any better. The stock market goes up and the stock market goes down. I believe that this stock will recover and over the long term provide me with a reasonable return.
The first thing I like to look at is Inside Buying and Selling. For this stock, there has only been insider buying. The CFO, some other officers of the company and some directors have all increased their stake in this company. This is indeed a positive sign. The buying has been between November 2008 and today. The buying started after there was a big fall in the price of this stock in the later part of 2008.
In looking at the P/E ratio, it depends on where you look what this figure is. The Globe Investor uses the earnings over the past year to determine a P/E and for this company that P/E is low. If you look at my spreadsheet, it is quite high at 16 for 2009 because of the earning estimate for this year. The one for 2010, or the future P/E ratio on my spreadsheet is not bad at 10.6. There is a big difference in what people expect for earnings in 2009 and 2010, so this ratio is problematic.
Also, for this stock, I do not think the yield helps much as there was recently a dividend decrease and this brings the yield into line with the average. Better places to look to see if there is value in the current price is the Graham Price and the Price/Book Value. Even though the Graham Price is dependent on earning estimates, the stock price is significantly below the Graham Price by over 30% for 2009 and rising to over 45% in 2010.
In looking at the P/BV ratio, I find that the current ratio is only 36% of the 10 year average. Any thing below 80% of the 10 year average is pointing to a very good stock price. However, the Graham Price and P/BV depend heavily on the current book value. The future book value will depend, of course, on this company pulling out of this current recession in tact.
So now, it is time to look at what the analysts are recommending. There are few analysts following this stock. The only recommendations I can find are a Buy. (See my site for information on analyst ratings.) To me this seems a reasonable rating. The company has taken necessary steps to conserve its cash. They also show a vote of confidence in buying shares.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi- family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is www.melcor.ca. See my spreadsheet at www.spbrunner.com/stocks/mrd.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, July 8, 2009
Melcor Development
This is my one stock (MRD-TSX) that cut it’s dividend in June 2009. The company has cut their dividend by just over 50%. In some ways, this can be thought of a second dividend cut. In 2006, there were two dividends of $.15 each. In 2007, there were two dividends of $.20 each. In 2008, there was a June dividend of $.25 and a December one of .17 for a total dividend of $.42. In 2008, we therefore had a total dividend 5% higher than the total dividend for 2007. But since the dividends in both June and December are usually the same, you could consider the 2nd one in 2008 as a dividend cut.
Because of the dividend situation, I decided to review this stock. I had last looked at this stock when the annual report for 2008 came in. I reviewed this stock in March of this year. In my last review, I liked the stock because of the health dividend increases over the years and because the stock price was lower than the Book Value. The current stock price at $6.40 is still lower than the Book Value of $10.43. The stock price has moved up since March 2009 when it was only $4.50.
With the current dividend, the 5 year growth in dividends goes from 30% per year to 10% per year. 10% dividend growth per year is still considered a health growth in dividend income for a stock. The other thing about the recent dividend decrease, this stock has been removed from the TSX Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices). This is not good, but it does not mean that Melcor is suddenly a bad stock.
Do not forget that the dividend achiever type lists are done rather mechanically. Stocks are added to these lists when they meet certain criteria; and they are deleted from these lists when they do not. I do not believe you should invest in a company just because it is on a good stock dividend list. You should always investigate a company before you invest. There may be serious problems with a company even though it is on such a list.
Likely wise, I will not simply sell a stock because it has been taken off a list, until I check out the reasons for this move. Melcor Development is into Real Estate in Alberta and this is currently a very difficult market. You only really lose on a stock if it goes bankrupt. I think that decreasing their dividend payment is a wise move by Melcor. Currently, I intend to hold on to my stock. Tomorrow, I will look at what the analysts say on this stock.
There are several other things I want to mention about this company today. The Asset/Liability Ratio is still at a health level of 1.80. However, when we turn to Return on Equity (ROE), it is only 1% for the first quarter of 2009. This is awfully low. A problem I had pointed out in March 2009 was with the Operating Cash Flow. This was negative for 2008; and for the first quarter of 2009, it is also negative. This is not good. It is always better to have a higher Operating Cash Flow than Net Earnings. For this stock, the Operating Cash Flow for both the year ending in 2008 and the quarter ending in March 2009, the Net Earnings is higher than the Operating Cash Flow.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi- family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is www.melcor.ca. See my spreadsheet at www.spbrunner.com/stocks/mrd.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.
Because of the dividend situation, I decided to review this stock. I had last looked at this stock when the annual report for 2008 came in. I reviewed this stock in March of this year. In my last review, I liked the stock because of the health dividend increases over the years and because the stock price was lower than the Book Value. The current stock price at $6.40 is still lower than the Book Value of $10.43. The stock price has moved up since March 2009 when it was only $4.50.
With the current dividend, the 5 year growth in dividends goes from 30% per year to 10% per year. 10% dividend growth per year is still considered a health growth in dividend income for a stock. The other thing about the recent dividend decrease, this stock has been removed from the TSX Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices). This is not good, but it does not mean that Melcor is suddenly a bad stock.
Do not forget that the dividend achiever type lists are done rather mechanically. Stocks are added to these lists when they meet certain criteria; and they are deleted from these lists when they do not. I do not believe you should invest in a company just because it is on a good stock dividend list. You should always investigate a company before you invest. There may be serious problems with a company even though it is on such a list.
Likely wise, I will not simply sell a stock because it has been taken off a list, until I check out the reasons for this move. Melcor Development is into Real Estate in Alberta and this is currently a very difficult market. You only really lose on a stock if it goes bankrupt. I think that decreasing their dividend payment is a wise move by Melcor. Currently, I intend to hold on to my stock. Tomorrow, I will look at what the analysts say on this stock.
There are several other things I want to mention about this company today. The Asset/Liability Ratio is still at a health level of 1.80. However, when we turn to Return on Equity (ROE), it is only 1% for the first quarter of 2009. This is awfully low. A problem I had pointed out in March 2009 was with the Operating Cash Flow. This was negative for 2008; and for the first quarter of 2009, it is also negative. This is not good. It is always better to have a higher Operating Cash Flow than Net Earnings. For this stock, the Operating Cash Flow for both the year ending in 2008 and the quarter ending in March 2009, the Net Earnings is higher than the Operating Cash Flow.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi- family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is www.melcor.ca. See my spreadsheet at www.spbrunner.com/stocks/mrd.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, July 7, 2009
State Of Dividends June 2009
Today, I am putting up a spreadsheet (see www.spbrunner.com/stocks/dividendincome.htm) showing two things about my dividend income for 2009. The first column called “Div Q2” and the second is called “09”. Under “Div Q2”, 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.
The first item to discuss is AltaGas Income Fund which I bought on May 22, 2009 and for which I have not yet received a distribution. On May 7, 2009, the company announced that there would be a distribution of $.18 on June 15, 2009 for unitholders of record on May 25, 2009. Since I purchased this stock on May 22, 2009, I had 3 business days to pay for it. Therefore, the settlement date was May 27th, 2009, the third business day after I purchased this stock. The unitholder of record on May 25, 2009 would be the person who I bought the stock from and they would receive this dividend. I do not own the stock until the settlement date.
This illustrates the 3 dates connected with dividends. The first date is the announcement date, which in this case is May 7, 2009. The second date specifies when you must be a holder of the shares to receive the dividend being declared. In this illustration, it is May 25, 2009. You are the holder of a share from the settlement date of your purchase. The last date shows the date that the dividend or distribution will be paid. In this case, the dividend is paid on June 15, 2009.
The next item is Matrikon Inc. This company announced on December 17, 2008 that a dividend would be paid of $0.03 per common share for the first quarter of fiscal year 2009. This dividend is payable January 14, 2009 to all shareholders of record on December 31, 2008. On April 18, 2009, Matrikon's board of directors declared a dividend of $0.03 per common share for the second quarter of fiscal year 2009. This dividend is payable May 13, 2009 to all shareholders of record on April 29, 2009. This announcement coincided with the announcement for the 2nd quarter results of the company.
As you can see with the declaration for Matrikon, not all dividend payments can easily be slotted into a dividend cycle of 1, 2 or 3. For this company, the dividends are mostly paid in cycle 1 months, so I have put it into Cycle 1 for dividend payments. However, as you can see, companies do not necessarily hold to one payment cycle for dividends.
Companies always announce when their dividends will be paid. A good site to look for the announcements is the Globe Investor site at www.globeinvestor.com . Usually, but not always, “dividend” or “distribution” is part of the news heading. If you do not find this, companies often announce a dividend or distribution when announcing annual or quarterly results. You can often find this information on the company’s website.
There are two things that I want to mention in connection with June dividends. The first is I have one company, Melcor Development that has decreased their dividends effect with the June dividend payment. The other is that there are some Canadian Companies that report in US dollars, rather than Canadian dollars. These companies usually also declare dividends in US dollars. For all the companies that I own with dividends declared in US dollars, their dividends for June are lower because our currency is increasing against the US dollar.
Tomorrow, I will do a review of Melcor Development as they have decreased their dividends.
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 item to discuss is AltaGas Income Fund which I bought on May 22, 2009 and for which I have not yet received a distribution. On May 7, 2009, the company announced that there would be a distribution of $.18 on June 15, 2009 for unitholders of record on May 25, 2009. Since I purchased this stock on May 22, 2009, I had 3 business days to pay for it. Therefore, the settlement date was May 27th, 2009, the third business day after I purchased this stock. The unitholder of record on May 25, 2009 would be the person who I bought the stock from and they would receive this dividend. I do not own the stock until the settlement date.
This illustrates the 3 dates connected with dividends. The first date is the announcement date, which in this case is May 7, 2009. The second date specifies when you must be a holder of the shares to receive the dividend being declared. In this illustration, it is May 25, 2009. You are the holder of a share from the settlement date of your purchase. The last date shows the date that the dividend or distribution will be paid. In this case, the dividend is paid on June 15, 2009.
The next item is Matrikon Inc. This company announced on December 17, 2008 that a dividend would be paid of $0.03 per common share for the first quarter of fiscal year 2009. This dividend is payable January 14, 2009 to all shareholders of record on December 31, 2008. On April 18, 2009, Matrikon's board of directors declared a dividend of $0.03 per common share for the second quarter of fiscal year 2009. This dividend is payable May 13, 2009 to all shareholders of record on April 29, 2009. This announcement coincided with the announcement for the 2nd quarter results of the company.
As you can see with the declaration for Matrikon, not all dividend payments can easily be slotted into a dividend cycle of 1, 2 or 3. For this company, the dividends are mostly paid in cycle 1 months, so I have put it into Cycle 1 for dividend payments. However, as you can see, companies do not necessarily hold to one payment cycle for dividends.
Companies always announce when their dividends will be paid. A good site to look for the announcements is the Globe Investor site at www.globeinvestor.com . Usually, but not always, “dividend” or “distribution” is part of the news heading. If you do not find this, companies often announce a dividend or distribution when announcing annual or quarterly results. You can often find this information on the company’s website.
There are two things that I want to mention in connection with June dividends. The first is I have one company, Melcor Development that has decreased their dividends effect with the June dividend payment. The other is that there are some Canadian Companies that report in US dollars, rather than Canadian dollars. These companies usually also declare dividends in US dollars. For all the companies that I own with dividends declared in US dollars, their dividends for June are lower because our currency is increasing against the US dollar.
Tomorrow, I will do a review of Melcor Development as they have decreased their dividends.
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, July 6, 2009
McCoy Corp 2
This stock is one of the small cap stocks I looked at in the early part of this year. I was looking for one to soak up the remaining cash in my TFSA after buying Shoppers Drug Mart for this account. This stock (TSX-MCB) is one of the ones for which I had done a spreadsheet. I am looking at how the 3 small caps I found had fared since that time. I did not purchase this stock.
When I look at Insider Buying and Selling, I see only buying. However, it is only the CFO that seems to be increasing his substantially, but this was at the end of 2008. There have recently been some Directors buying share. There is no person with a big ownership position, so this buying show that persons connected with this company have faith in it.
The next thing to look at is ratios. The P/E ratio for current earnings estimate is quite high at 22. This ratio, however, falls quite low to about 7 when considering the earnings estimate for 2010. The other thing though is that the P/E ratios have often been very low. The yield at 3.3% is not particularly high, but it is higher than the 5 year average of 2.9%. However, the yield on this stock started very low at less than a 1% yield. Neither of these ratios tell us very much about the current price of the stock.
I looked next at the Graham Price. With the earnings estimate for 2009, the current price is some 30% below the Graham Price. With the earnings estimate for 2010, the difference between the current price and the Graham Price rises to over 60% discount of the stock price. This would seem to point to a current good price. The other thing that points to a possible good price is the negative Accrual Ratio.
As I have said before, this is a small cap stock and so there is not many analysts following it. I can find only a couple and both give a Hold rating on this stock. (See my site for information on analyst ratings.)
When looking at the charts, this stock has underperformed all the indexes with which I compared it. I compared this stock to the TSX, Industrials and Small Cap indexes. The reason is that this stock hit a high in 2006 and has only declined since that time. The company says that it is suffering from the problems in Western Canada in connection with the Oil and Gas Industry. If you are interested in this company, please realize that it is a high risk as it is a small cap and is dependant on our Western Oil and Gas Industry. Also, the Globe Investor site only gives this company a 2 star rating out of a possible 5 stars.
McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, is the second largest global supplier of make/break machines used for assembling downhole tool strings and testing pipe connections, and also manufactures consumable replacement parts (dies and inserts) used in rig equipment. McCoy builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines, and custom heavy duty trailers, crane dollies and oilfield chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic cylinder services and refurbishment for rigs and heavy equipment; and maintenance, repairs and parts for heavy duty trucks and trailers. Its web site is www.mccoycorporation.ca. See my spreadsheet at www.spbrunner.com/stocks/mcb.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 look at Insider Buying and Selling, I see only buying. However, it is only the CFO that seems to be increasing his substantially, but this was at the end of 2008. There have recently been some Directors buying share. There is no person with a big ownership position, so this buying show that persons connected with this company have faith in it.
The next thing to look at is ratios. The P/E ratio for current earnings estimate is quite high at 22. This ratio, however, falls quite low to about 7 when considering the earnings estimate for 2010. The other thing though is that the P/E ratios have often been very low. The yield at 3.3% is not particularly high, but it is higher than the 5 year average of 2.9%. However, the yield on this stock started very low at less than a 1% yield. Neither of these ratios tell us very much about the current price of the stock.
I looked next at the Graham Price. With the earnings estimate for 2009, the current price is some 30% below the Graham Price. With the earnings estimate for 2010, the difference between the current price and the Graham Price rises to over 60% discount of the stock price. This would seem to point to a current good price. The other thing that points to a possible good price is the negative Accrual Ratio.
As I have said before, this is a small cap stock and so there is not many analysts following it. I can find only a couple and both give a Hold rating on this stock. (See my site for information on analyst ratings.)
When looking at the charts, this stock has underperformed all the indexes with which I compared it. I compared this stock to the TSX, Industrials and Small Cap indexes. The reason is that this stock hit a high in 2006 and has only declined since that time. The company says that it is suffering from the problems in Western Canada in connection with the Oil and Gas Industry. If you are interested in this company, please realize that it is a high risk as it is a small cap and is dependant on our Western Oil and Gas Industry. Also, the Globe Investor site only gives this company a 2 star rating out of a possible 5 stars.
McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, is the second largest global supplier of make/break machines used for assembling downhole tool strings and testing pipe connections, and also manufactures consumable replacement parts (dies and inserts) used in rig equipment. McCoy builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines, and custom heavy duty trailers, crane dollies and oilfield chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic cylinder services and refurbishment for rigs and heavy equipment; and maintenance, repairs and parts for heavy duty trucks and trailers. Its web site is www.mccoycorporation.ca. See my spreadsheet at www.spbrunner.com/stocks/mcb.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, July 3, 2009
McCoy Corp
This stock is one of the small cap stocks I looked at in the early part of this year. I was looking for one to soak up the remaining cash in my TFSA after buying Shoppers Drug Mart for this account. This stock (TSX-MCB) is one of the ones for which I had done a spreadsheet. I am looking at how the 3 small caps I found had fared since that time. I did not purchase this stock.
This first thing to look at is the growth figures. In a world where people ask for what have you done lately for me, this stock fairs better than Pulse Seismic does. For things like Revenue, Earnings, Stock Price, Book Value and Cash Flow, the 5 year figures for this stock are much better than the 10 year figures. For example, look at the 5 and 10 year growth figures for the Stock price. The 5 year growth figure is 40% per year whereas the 10 year growth figure is -2% growth per year. This is quite a difference.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio we have 2.52. This is above the 5 and 10 year averages for this Ratio and a very good ratio. The Asset/Liability Ratio is 3.10, and this is also above the 5 and 10 year averages for this Ratio. With the Liquidity Ratio, we are saying that the current Assets cover very well the current Liabilities.
The next good think to remark on is that the Total Accruals are negative and we have a really low Accrual ratio of -12% for the year ending in 2008. The one I calculated for the March 2009 quarterly report is still negative, but it is only at -2%.
Now, to look at what is not so great about this stock. The first thing to notice is the Return on Equity (ROE). The 5 year average is good at 10% per year, but the one for the year ending in 2008 is -8% and the one I calculated for the March 2009 quarterly report is not very good at 2%. The other thing to mention on this stock is that the dividends have been reduced for 2009. The dividends have gone from $.03 a quarter to $.01 a quarter. The Dividends were reduced because of the current recession and McCoy Corp does not see a turn around in business for them before the end of 2009.
On Monday, I will look at what the analysts are saying about this stock. As it is a small cap, there will not be many analysts following this stock.
McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, is the second largest global supplier of make/break machines used for assembling downhole tool strings and testing pipe connections, and also manufactures consumable replacement parts (dies and inserts) used in rig equipment. McCoy builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines, and custom heavy duty trailers, crane dollies and oilfield chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic cylinder services and refurbishment for rigs and heavy equipment; and maintenance, repairs and parts for heavy duty trucks and trailers. Its web site is www.mccoycorporation.ca. See my spreadsheet at www.spbrunner.com/stocks/mcb.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 first thing to look at is the growth figures. In a world where people ask for what have you done lately for me, this stock fairs better than Pulse Seismic does. For things like Revenue, Earnings, Stock Price, Book Value and Cash Flow, the 5 year figures for this stock are much better than the 10 year figures. For example, look at the 5 and 10 year growth figures for the Stock price. The 5 year growth figure is 40% per year whereas the 10 year growth figure is -2% growth per year. This is quite a difference.
The next thing to look at is the Asset/Liability Ratios. For the Liquidity Ratio we have 2.52. This is above the 5 and 10 year averages for this Ratio and a very good ratio. The Asset/Liability Ratio is 3.10, and this is also above the 5 and 10 year averages for this Ratio. With the Liquidity Ratio, we are saying that the current Assets cover very well the current Liabilities.
The next good think to remark on is that the Total Accruals are negative and we have a really low Accrual ratio of -12% for the year ending in 2008. The one I calculated for the March 2009 quarterly report is still negative, but it is only at -2%.
Now, to look at what is not so great about this stock. The first thing to notice is the Return on Equity (ROE). The 5 year average is good at 10% per year, but the one for the year ending in 2008 is -8% and the one I calculated for the March 2009 quarterly report is not very good at 2%. The other thing to mention on this stock is that the dividends have been reduced for 2009. The dividends have gone from $.03 a quarter to $.01 a quarter. The Dividends were reduced because of the current recession and McCoy Corp does not see a turn around in business for them before the end of 2009.
On Monday, I will look at what the analysts are saying about this stock. As it is a small cap, there will not be many analysts following this stock.
McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, is the second largest global supplier of make/break machines used for assembling downhole tool strings and testing pipe connections, and also manufactures consumable replacement parts (dies and inserts) used in rig equipment. McCoy builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines, and custom heavy duty trailers, crane dollies and oilfield chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic cylinder services and refurbishment for rigs and heavy equipment; and maintenance, repairs and parts for heavy duty trucks and trailers. Its web site is www.mccoycorporation.ca. See my spreadsheet at www.spbrunner.com/stocks/mcb.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, July 2, 2009
Pulse Seismic Inc 2
Today, I want to continue my review of Pulse Seismic Inc (TSX-PSD) and then go on to review again McCoy Corp and Matrikon Inc. The question is, how have these stocks faired since I last reviewed them.
The first thing that I looked at was the Insider Buy and Selling. What I found was mostly buying with a bit of selling. The buying is such that both the CEO and CFO have increased their holdings in this stock. Still buying amounts to about .1% of the stock. However, this would tend to offset the fact of the temporary suspension of dividend payments.
Looking at spreadsheet ratios, we cannot use the P/E, Graham Price or Dividend Yield as guides. The problem with both the P/E and Graham Price is that this company has not been earning much lately and most analysts do not expect positive earnings in 2009 or 2010. The problem with the dividend yield is that they have temporarily suspended the dividend.
So, I turned to such things as the Price/Sales Ratio and the Price/Book Value Ratio. First, I will look at the P/S ratio. The P/S ratio for 2008 is 1.79. Although this ratio is lower than the 5 year average of 2.24, it is not a particularly low figure. A low P/S would be 1 or less. The P/BV Ratio of 1.22 is lower than the 5 year average of 1.39, but it is not lower than the 10 year average of 1.15. So, again these ratios do not point to the current price being a good one.
I cannot find the full financial statements for the first quarter ending in March 2009. However, what I did find in highlights from this quarter is that the Revenue is down compared to the first quarter of March 2008. Also, compared to the first quarter of March 2008, the earnings loss is larger. Neither is good news.
In looking at analysts’ recommendations, I find that there are few analysts that follow this stock and what I find is that the consensus recommendation is a Hold. I can find nothing else. (See my site for information on analyst ratings.)
In looking at the charts, I compared this stock to the TSX Index, the TSX Industrial Index and the TSX Materials Index. What I found is that for all periods from 6 months to 10 years it has under preformed all these indexes. The main problem being that while lately all these indexes have rallied, this stock has remained depressed or it has fallen.
Most of what I have written about this stock is not good news. The bright spots are only some insider buying and the low Accrual Ratio. However, I do not think that either is reason for thinking this stock is going to do well in the near future, and any turn around would seem some way off.
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.
The first thing that I looked at was the Insider Buy and Selling. What I found was mostly buying with a bit of selling. The buying is such that both the CEO and CFO have increased their holdings in this stock. Still buying amounts to about .1% of the stock. However, this would tend to offset the fact of the temporary suspension of dividend payments.
Looking at spreadsheet ratios, we cannot use the P/E, Graham Price or Dividend Yield as guides. The problem with both the P/E and Graham Price is that this company has not been earning much lately and most analysts do not expect positive earnings in 2009 or 2010. The problem with the dividend yield is that they have temporarily suspended the dividend.
So, I turned to such things as the Price/Sales Ratio and the Price/Book Value Ratio. First, I will look at the P/S ratio. The P/S ratio for 2008 is 1.79. Although this ratio is lower than the 5 year average of 2.24, it is not a particularly low figure. A low P/S would be 1 or less. The P/BV Ratio of 1.22 is lower than the 5 year average of 1.39, but it is not lower than the 10 year average of 1.15. So, again these ratios do not point to the current price being a good one.
I cannot find the full financial statements for the first quarter ending in March 2009. However, what I did find in highlights from this quarter is that the Revenue is down compared to the first quarter of March 2008. Also, compared to the first quarter of March 2008, the earnings loss is larger. Neither is good news.
In looking at analysts’ recommendations, I find that there are few analysts that follow this stock and what I find is that the consensus recommendation is a Hold. I can find nothing else. (See my site for information on analyst ratings.)
In looking at the charts, I compared this stock to the TSX Index, the TSX Industrial Index and the TSX Materials Index. What I found is that for all periods from 6 months to 10 years it has under preformed all these indexes. The main problem being that while lately all these indexes have rallied, this stock has remained depressed or it has fallen.
Most of what I have written about this stock is not good news. The bright spots are only some insider buying and the low Accrual Ratio. However, I do not think that either is reason for thinking this stock is going to do well in the near future, and any turn around would seem some way off.
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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