Tuesday, August 4, 2009


When I went out to jog on Monday, there was no one else to be seen. I do not normally jog on weekends and holiday. I had forgotten that Monday was a holiday. This is also the reason I did not post to this blog on Monday, as I said I would, because usually I do not post on weekends and holidays.

Now on to the stock I am writing about. I am continuing my review 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 think that insider buying is a buy signal, then this stock is putting out that signal. However, I must admit that the insider buying seems to be over and the stock has since risen about 13%. However, the insider buying certainly points to the confidence the insiders have in this company.

The next thing to look at is spreadsheet ratios. The P/E ratio, until very recently has been extremely high. Currently, it is not bad at 17 to 18. This is by no means a low P/E; it is just much lower than it has been. However, this P/E is not particularly high either. When looking at the yield, this is not bad at just under 3.5%. However, this company has gone from an income trust to a corporation and has recently cut their dividend. So, the dividend yield is lower than it has ever been.

The one indicator that is showing a strong buying signal is the Price/Book Value ratio. The current ratio is just 60% of the 10 year average. This ratio at then end of 2008 was just 44% of the 10 year average. Also, the Price/Sales ratio is also lower than the 5 and 10 year average. This ratio was just .54 in 2008 and is expected to be about .95 for 2009. The averages for this ratio are closer to 2.00. The other good things are that the current price is below the Graham Price and the low Accrual Ratio.

When I look at analysts’ recommendations, all I can find on this stock are Strong Buy and Buy recommendations. Even though analysts have lowered their earnings estimates for 2009 and 2010 since I look at this stock in May 2009, they are still recommending it. (See my site for information on analyst ratings.) The other thing to mention is that Globe Investor gives this stock a 3 star rating. The Globe Investor uses a 1-5 star rating system.

I am keeping what I have of this stock currently and I have no plans to buy more. However, I really have no plans to buy any stock until the fall.

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.

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