Wednesday, August 17, 2011


It is summer and I spend the day on a boat in the Kawarthas.

I own this stock (TSX-TCS). They have an annual reporting date of 30 April each year, and I have just received their annual statement. This is a small cap dividend paying stock that I have used to soak up small bits of money left over after investing in other stocks.

I think that the first thing to note is that the company is buying back shares for cancellation and they have been doing this over the last few years at the rate of 3 to 4% per year. Since 2007, the number of outstanding shares has fallen by almost 15%. There has been some minor buying of shares by directors over the past year. Reuters says that slightly less than 25% of company is owned by institutions and that they have not bought or sold any over the past 3 months. See Reuters.

I get a 5 year median low Price/Earnings Ratio of 9.47 and a 5 year median high P/E Ratio of 15.83. Using the earnings estimate, that gives this stock a really low P/E of 8.80. However, estimates have been notorious for being wrong. The Trailing P/E is at a rather high level of 18.35.

I get a Graham Price of $2.84 and this is some 22% higher than the current stock price of $2.20. However, Graham Price also uses the earnings estimates. Using last year’s Graham Price of $1.97, the current stock price is 11.8% higher than last year Graham Price.

The current dividend yield of 2.73% is lower than the 3 year median dividend yield of 2.81%, and this shows a higher than median stock price. However, the current dividend yield is better than the 3 year median low dividend yield of 2.29%. I get a 10 year median Price/Book Value Ratio of 1.52 and a current one of 1.53. This would show the current stock price to be reasonable.

There seems to be only one analyst following this stock. His recommendation is a buy with a 12 month stock price of $3.00. I will at present hold on to the shares I have and perhaps add a bit more to them over time. I am also hoping that this company will be around for a while and not bought out.

Here are a couple of fairly recent articles on this company. The first article is from Panorama Consulting Solutions. The second article is from Warehouse Management.

TECSYS Inc. is a supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high- volume distribution industries. Its web site is here TECSYS. See my spreadsheet at tcs.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.

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