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.