Tuesday, September 11, 2012

PFB Corp 2

I do not own this stock of PFB Corp (TSX-PFB). I have in the past bought the Investment Reporter newsletter. I have not bought it for a number of years now, but I still follow some of the stocks that were in this newsletter when I bought this report and this was one of their stocks. The website of MPL Communications who publish this newsletter is here.

When I look at insider trading report, I find little happening. There is a tiny amount of insider buying and no insider selling. Reuters says that there is 1 institution that holds 6.71% of the outstanding stock. It also says that an institution another sold off their position over the past three months. This sold position was for 2.3% of what institutions held 3 months ago. That is that there was a decline of 2.3% of what institutions held in this stock. See Reuters.

The 5 year low, median and high median Price/Earnings Ratios are 12.08, 14.79 and 17.50. The current P/E Ratio is 12.33 based on last 12 months earnings $.58 and stock price of $7.15. (I can find no estimates for this stock.) This suggests that the stock price is reasonable.

I get a Graham Price of $9.23. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 0.91 and 1.06. The current P/GP Ratio is 0.77. This suggests that the stock price is reasonable.

I get a 10 year Price/Book Value Ratio of 1.20. The current P/B Ratio is 1.09 and it is some 91% of the 10 year Ratio. This ratio also suggests that the current stock price is reasonable.

The current dividend yield is 3.36%. The 5 year median is 3.98%. The current one is some 16% higher than the 5 year median dividend yield. This dividend yield suggests a reasonable stock price. (Also note that the 10 year median dividend yield is lower than the 5 year dividend yield by some 28%. This is a fairly big difference. The current dividend yield is some 17% higher than the 10 year median dividend yield. The 10 year median dividend yield is 4.08%.)

All the tests show that the stock price is a reasonable one. It is always great to get a low price, but generally we should accept a reasonable one as potentially best we might get.

There are no analysts giving estimates on this stock and also no analysts that are giving recommendations. I originally got this company from Investment Reporter of MPL communications. They say this stock remains a buy for long-term gains and attractive dividends. See their site

There is an interesting article on this company in Forbes saying that PFB is integrating NOVA's Performance Styrenics business in time for Green Housing market upturn.

PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp. See my spreadsheet at pfb.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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