Tuesday, June 11, 2013

McCoy Corp 2

I own this stock of McCoy Corp (TSX-MCB, OTC- MCCRF). In 2011, I decided to try out McCoy Corp shares. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.

When I look at the insider trading report I find a small amount of insider buying and some insider selling. Insider selling is at $0.6M and net insider selling is at $0.6M. The CEO has shares worth $1.9M and has options are worth $1.9M. The CFO has some shares and some options. An officer has shares worth $0.3M and has options are worth $0.M. Directors have some shares and some options. This is just to give you an idea on insider share ownership and option values.

The 5 year low, median and high median Price/Earnings per Share Ratios are 6.02, 8.11 and 10.18. The current P/E Ratio is 10.17 based on 2013 earnings estimates for 2013 of $0.47 and stock price of $4.78. However, all the median P/E Ratios for this stock are rather low as is the current P/E of 10.17

I get a Graham Price of $5.59. The 10 year low, median and high median Price/Graham Price Ratios are 0.47, 0.86 and 1.33. The current P/GP Ratio is 0.85. This shows that the stock price is reasonable. Also, a stock price is considered generally cheap if the P/GP Ratio is 1.00 or below.

The 10 year median Price/Book Value Ratio is 1.35 and the current P/B Ratio is 1.62. The current P/B ratio is some 20% higher than the 10 year median and this shows that the stock price is getting, relatively high.

The current dividend yield is 4.18% and the 5 year median dividend yield, excluding 2010, is 3.33%. Current dividend yield is 26% higher than the 5 year median. This suggests a good stock price. However, it is hard to really judge the stock price based on the dividend yield. The median dividend yield for 2012 was higher at 4.8%. On the other hand, a dividend yield of 4.18% is a good yield.

There is, surprisingly 4 analysts following this stock. These analysts generally feel that 2013 will be a better year than 2012. However, revenue, earnings and cash flow were all level or down for the 1st quarter of 2013.

The analysts' recommendations on this stock are Strong Buy and Buy. The consensus would be a Buy as most of the recommendations are a Buy. The 12 month consensus stock price is $6.00. This implies a total return of 29.7%, with 25.52% from capital gains and 4.18% from dividends.

The site iPolitics talks about the 4th quarter of 2012 having a decline in profitability, although the, if you consider the complete year of 2012, the results were better.

This stock is servicing the oil and gas industry, and this sector is not doing especially well at the present time. This is an interesting company for investment and it has a good dividend. It is risky and it is hard to judge the current stock price, but it certainly is not cheap. See my spreadsheet at mcb.htm.

This is the second of two parts. The first part was posted on Monday, June 10th, 2013 and is available here.

McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.

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 or StockTwits.

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