Andrew Peller Ltd 2

I owned this stock (TSX-ADW.A) at one time. I held it from October 1996 to August 2000. I sold it because the company was having some difficulties and I did not think there would be a dividend increase anytime soon. In any event, the dividends were flat between 1998 and 2006. They increased dividends in 2007, 2008 and 2009 and then they have again been flat.

In looking at the insider trading report, I find minimal insider selling (a few thousand dollars). I also find that insiders are keeping their stock grants. This is a positive thing. There is no insider buying. Sometimes this report does tell you something. In this case, it was something positive, such as insider retaining their stock grants. This is one a good reason to always look at this report.

Is the stock price good? First, I looked at the P/E ratio, which is currently at 13 based on last 12 months of earnings. This is not a bad P/E, but an absolutely good P/E is 10 or below. The 5 year median low P/E is 11 and the 5 year median high P/E is 15. So I find that the current one of 13 is not especially high or low. I get Graham Price of $11.02. This is 21% above the current stock price of $8.69, so this points to a good current price.

The 10 year average Price/Book Value ratio is 1.25 and the current one is 1.11; about 90% of 10 year one. This shows a relatively good price, but a very good price would be if the current P/B ratio were 80% of the 10 year one. The last thing is the dividend yield. The current one is 3.8% and the 5 year average is 3.1%. This also shows a relatively good stock price, but great one would be closer to 5%, where the stock has been before.

I can find no analysts that follow this stock. However, Just Drinks mentions this company. I found one review of this stock from 2000 to 2010 at Value Investigator.

Andrew Peller Limited (the “Company”) is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario’s Niagara Peninsula, British Columbia’s Okanagan and Similkameen Valleys and vineyards around the world. They also market craft beer under the Granville Island brand. The Company produces and markets consumer-made wine kit products through Winexpert and Vineco International Products. The Company’s products are sold predominantly in Canada. Class A shares are non-voting. Its web site is here Peller. See my spreadsheet at adw.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 for stocks followed and investment notes. Follow me on twitter.