Tuesday, August 16, 2011


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.

The dividends on this stock are about average for dividend paying stock. The 5 year median dividend yield is 2.81% and the current dividend yield is 2.73%. This stock is a bit unusual as it only has dividend payments twice a year, in March and September. They did not raise the dividend in financial year ending in April 2011. However, they did raise it recently by 20%. The 3 year growth in dividends is a healthy 11.2%. They seem to increase the dividends every second year.

This stock was heavily affected by the tech bubble, and probably hit stock prices it may never or at least not soon see again. Considering that this company did not make a profit until 2008, it is not doing badly. Revenue growth could be better as the 5 year growth in revenue per share is just over 4% and just over 1% for revenues. (Number of outstanding shares is going down.) This stock has not yet made their shareowner’s much money, but there is at least one analyst following this stock and he expects that both Revenues and Earnings will be up nicely in 2012. Cash flow has been growing nicely at just over 7% per year.

Probably the best thing about this stock is their debt ratios. The current Liquidity Ratios is 1.46 and the current Asset/Liability Ratio is excellent at 2.11. The other ratios are also good as the company has little debt. The Leverage Ratio is 1.61 and the Debt/Equity Ratio is 0.85. All their debt is short term or current liabilities. (See my site for further information on Debt Ratios. )

The Brereton Family owns just under 50% of the shares of this company and about another 16% is owned by a subsidiary of the National Bank. This firm has its headquarters in Montreal.

The problem with small cap tech stocks is that if they do well they tend to get bought out. This is what happened to my last two small cap tech stocks. Sometimes it is good to having a family owned firm as they seem to be less inclined to sell out. However, every family owned firm is different. Still this stock is up by about 14% since I bought it. Looking at the bit and ask prices today, they are wide apart. The Bid is $2.08 and the Asking is $2.31 with a last transaction at $2.20. This is a very wide spread.

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.


  1. Two comments

    1. The technical chart for TCS does not look good.
    2. Such a thinly traded stock. Tough to buy 10,000 shares and I bet even harder to sell the same amount.

  2. Anonymous

    I do not think that you actually read my blog entry.

    I did not try to buy this as a investment, but a few hundred shares to soak up some extra cash. It is a interesting little company.

    Currently most stocks are going down as the market has really been going done since April of this year.