Matrikon Inc

I am reviewing this stock (TSX-MTK) today as the August 2009 year end annual report has been published and I want to review this to see if I will buy more for my TFSA when I put more money into this account this year. I bought this stock last year when I started my TFSA to soak up the remaining money in my account after buy Shoppers. Since I bought this stock last year, I have had a return of 31.5% on my investment.

This is a small cap dividend paying stock. It has some problems last year and they only paid the first two quarterly dividends and then stopped them. It has now resumed dividends with a payment this reporting year of 2010. This stock only started to pay dividends for the reporting year ending in August 2008.

When you are looking at growth figures on this stock, you can certainly see that did not have a good year in 2009. The growth in revenue and book value are just ok. They earned very little last year and the cash flow from operations was negative. However, everyone seems to feel that this company will have a much better year in 2010. The Return on Equity is also nothing to write home about.

A much better picture is shown when you look at Liquidity and Asset/Liability Ratios. These ratios are very good. The Liquidity Ratios are usually over 2.00 and the Asset/Liability Ratios are usually over 3.00. For these ratios, anything at or over 1.50 is good. The last thing I want to touch on today is the Accrual Ratio. This is very high at 6.7%. However, the real problem is that the Cash Flow from Operations was negative.

Tomorrow, I will review the buy/sell signals and also see what analysts are saying about 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. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.