Lassonde Industries Inc. 2

On my other blog I am today writing about growing dividend income if dividends are reinvested continue...

Sound bite for Twitter and StockTwits is: Stock price seems expensive. This stock has done very well for its shareholders, but it does seem relatively pricey at the moment. See my spreadsheet at las.htm.

I do not own this stock of Lassonde Industries Inc. (TSX-LAS.A, OTC- LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.

There is insider ownership with the Chairman and CEO owing all the Class B shares. If these shares were Class A shares they would be worth around $488M. They are probably worth more as they have 10 votes to Class A shares of one vote. There seems to be no stock options. In insider trading there was some insider selling and some insider buying with a net insider selling equal to 0.01% of the market cap of this stock.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.23, 13.18 and 15.14. These are a bit higher than the corresponding 10 year ratios of 10.34, 12.29 and 14.12. The current P/E Ratio is 20.92 based on a stock price of $137.46 and EPS for the 12 months ending at the end of the first quarter of $6.57. I could find no estimates for this company. No analyst seems to follow this company. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $95.39. The 10 year low, median and high median Price/Graham Price Ratio is 0.87, 0.99 and 1.13. The current P/GP Ratios is 1.44 based on a stock price of $137.46. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share 1.80. The current P/B Ratio is 2.23 a value some 24% higher. My P/B Ratio of 2.23 is based on a stock price of $137.46 and BVPS of $61.55. This stock price testing suggests that the stock price is relatively expensive.

The 5 year median, historical average and historical median dividend yields are 1.69%, 1.96% and 1.83% which are some 29%, 39% and 35% higher than the current dividend yield of 1.19%. The dividend yield is based on dividends of $1.64 and a stock price of $137.46. This stock price testing suggests that the stock price is relatively expensive. The historical low dividend yield is 1.26% and this some 5% higher than the current dividend yield.

Lassonde has announced via the Newswire that they may buy back outstanding shares on the open market. Lassonde recently announced its Q1 2015 results via Newswire. Lassonde recently announced their acquisition of Apple & Eve, LLC. There is an interesting article about Lassonde suing a small company over its use of Oasis. Internet media helped resolve the dispute.

This is the second of two parts. The first part was posted on Tuesday, July 28, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under recognized brands such as Apple & Eve, Everfresh, Fairlee, Flavür, Fruité, Graves, Northland, Oasis, Rougemont, Seneca and The Switch. Lassonde is the second-largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry juices, drinks and sauces. Its web site is here Lassonde.

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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