Sound bite for Twitter and StockTwits is: Probably cheap and risky. I think that this is still a great company, but it did not do well in 2015 and the oil and gas industry will have to do better for this company to do better. I think that they would be wise to cut dividends until things improve. However, if they did that the stock price would certainly get more beaten up. See my spreadsheet on Ensign Energy Services.
I do not own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF), but I used to. I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I sold this stock in December 2014 to buy Mullen Group (TSX-MTL, OTC-MLLGF) instead. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply. I wrote amount this at the time and the blog entry was called Ensign and Mullen.
The thing I really did not like about Ensign was the very low Liquidity Ratio. It was often below 1.00. This means that the current assets cannot cover current liabilities. It makes a company vulnerable in bad times. It could raise it over 1.00 to 1.47 if you add in cash flow after dividends. However, this company is tied to the oil and gas industry, so you have to wonder how solid the cash flow was. Also, the preferred Liquidity Ratio value is 1.50 or above.
At the end of 2014 the Liquidity Ratio for Ensign was 1.47 and for the financial year at the end of 2015 it is 1.77. So it is doing better in the one big area I did not really like.
Ensign did raise it dividends again in 2015, but it was a very low increase at 2.1%. However, I do not believe that they cannot afford to pay dividends. In 2014 the company paid out 102% of earnings in dividends. There was an earnings loss in 2015, so dividends could not be covered.
Analysts do not expect positive EPS from 2016 to 2018 inclusive, so this makes having a dividend difficult. This would suggest that the dividend is at risk. However, analysts do think that CFPS could easily cover dividends with a DPR of around 35% over the next while. The DPR for CFPS for 2015 was 18%.
Analysts expect both Cash Flow and Revenue to decline again in 2016, but start to recover in 2017. Revenue is expected to drop some 37% and Cash Flow is expected to drop some 49% in 2016. For the 12 months ending in March 2016 compared to the 12 months to December 2015, Revenue has dropped 14% and Cash Flow has dropped 22%. Comparing the first quarter of 2015 and the first quarter of 2016, Revenue is down by 42% and Cash Flow is down by 59%.
It is not possible to do any Price/Earnings per Share Ratio stock price testing as there was an earnings loss in 2015 and loses are expected to continue to 2018, inclusive. You have a similar problem with the Graham Price. My last Graham Price calculation gave one of $11.78 which would give a P/GP Ratio of 0.60 based on a stock price of $7.16. That suggests a relatively cheap stock price.
The stock price testing using Dividend Yield also has problems as I think that dividends are at risk. However, the current Dividend Yield is 6.70% based on dividends of $0.48 and a stock price of $7.61. The historical median Dividend Yield is 1.76% and you have an historical high Dividend Yield of 4.65%. Clearly, this currently says that the stock price is relatively cheap. However, what happens if dividends are cut?
The 10 year median Price/Book Value per Share Ratio is 1.37. The current P/B Ratio is 0.56 based on BVPS of $12.85 and a stock price of $7.16. This stock price testing suggests that the stock price is relatively cheap. That is because the current P/B Ratio is some 59% lower than the 10 year P/B Ratio and because the P/B Ratio is below 1.00. If a stock is selling below its Book Value, it is considered cheap.
I get a 10 year median P/S Ratio of 1.48. The current P/S Ratio is 1.22 a value some 18% lower. For the stock to be relatively cheap, you need a current P/S Ratio 20% lower. So this testing is just saying the stock price is relatively reasonable and below the median. The current P/S Ratio is based on Revenue estimate for 2016 of $894M, Revenue some 36% lower than the Revenue in 2015. I would suspect that Revenue will drop significantly in 2016.
I get a 10 year Price/Cash Flow per Share Ratio of 7.09. The current P/CF Ratio is 4.69 based on a stock price of $7.16 and CFPS estimate for 2016 of $1.39. Analysts expect Cash Flow to drop in 2016 and I think that this is a reasonable expectation. The current P/CF Ratio is some 27% below the 10 year median ratio and this suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. The vast majority of the recommendations are a Hold and the consensus is a Hold. The 12 month stock price consensus stock price is $7.63. This implies a 13.27% total return with 6.56% from capital gains and 6.70% from dividends.
Sylvia Delisle in the Risers and Fallers blog talks about recent analysts' recommendations on this stock. Jeffrey Jones talks about Edward Murry the Chairman of the Board for Ensign.
Dan Healing of Calgary Herald talks about Ensign retiring 21 drilling rigs as slowing oilfield activity further shrinks industry.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here and here..
The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more . Tomorrow on my other blog I will write about my Updated Spreadsheets... learn more on Tuesday, May 31, 2016 around 5 pm.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy Services.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, May 30, 2016
Friday, May 27, 2016
Goeasy Ltd.
Sound bite for Twitter and StockTwits is: I would not buy. The only reason I continued on this company is to point out what I see wrong with it. I am surprised that the Investment Reporter would recommend such a stock. I do not like their business model and I think that they have a lot of negatives. See my spreadsheet on Goeasy Ltd.
I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named.
This is not quite the same as pay day loans. They are called installment loans. But interest rates are very high. They are, in a nutshell, unsecured, high-interest, subprime, short-term loans. All you can say about the interest rate is that it is below 60%, which is at the criminal rate. See CBC article on this company here and another about Easyhome here.
I would not buy this company. There are complains about this company charging interest rates around the legal limit which is 60%. They may go over because of fees. Also, there are comments about how much it charges for people to buy from them on the installment plan. For example their SAMSUNG 58'' Smart LED TV is listed at $35 per months for 156 months. This is $5460.00. The Brick and Best Buy have it for $999.99. I check this online on May 22, 2015 here.
The positives are that this company has good growth in Revenue, Earnings and Cash Flow. Looking at Revenue, I see that it has grown by 11% and 11.4% per year over the past 5 and 10 years. Revenue per Share has grown at 8.3% and 8.1% per year over the past 5 and 10 years.
The total return over the past 5 years is very good, but not so much for the past 10 years. The total return is at 18.05% and 3.76% per year over the past 5 and 10 years. The portion of this growth attributable to capital gains is at 15.40% and 1.83% per year over the past 5 and 10 years. The portion of this growth attributable to dividends is at 1.95% and 3.04% per year over the past 5 and 10 years.
Some of the debt ratios are good. The Liquidity Ratio seems reasonable. However, they do not give you current assets on their balance sheets so you have to figure it out or accept what sites like Google Finance says. The Debt Ratios are fine with the one for 2015 at 1.73.
I find a lot more negatives, including the one mentioned above about this business this company is in. There was no dividend growth between 2010 and 2014 inclusive. Dividend increases were restarted in 2014 with an 11% rise. The last dividend increase was in 2016 and it was a 30% increase. Looking at dividend growth it is at 1.6% and 8% per year over the past 5 and 10 years. Dividend growth of 1.6% over the past 5 years is a very low growth.
The one thing about debt ratios that I do not like is the Long Term Debt to Market Capitalization. Long Term Debt is 90% of the market cap. A high long term debt to capitalization ratio would indicate the financial weakness of the firm and the debt would most likely increase the risk of the company. This is not a good thing.
Another negative is the Net Insider Selling. This is at 1.37% of market cap. This is relatively high. The median NIS for the stocks I follow is 0.02% and 75% are at 0.12% or lower.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.07, 11.28 and 13.70. The corresponding 10 year ratios are higher at 10.71, 14.50 and 18.29. The current P/E Ratio 8.12 based on 2016 EPS estimate of $2.34 and a stock price of $19.00. This stock price testing suggests that the stock price is relatively cheap.
I get an historical dividend yield of 2.42%. The current dividend yield is 13% higher at 2.74% based on a stock price of $19.00 and dividends of $0.52. This stock price testing suggests that the stock price is reasonable and below the median.
When I look at analysts' recommendations, I find Strong Buy and Buy recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price consensus is $31.21. This implies a total return of 67%, with 64.265 from capital gains and $2.74% from dividends.
Todd Miller on The Post talks about this company having a big run up on May 25, 2016 and that analysts that follow it mostly rate it a buy. It is interesting that the company announced a Point of Sale Financing Venture with Sears Canada. Fabrice Taylor wrote at the end of 2015 that he owns this stock. Obviously, people have different opinions to mine.
Yesterday on my other blog I wrote about the sectors I invest in compared to CDZ... learn more . The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC- ESVIF)... learn more on Monday, May 30, 2016 around 5 pm.
Goeasy Ltd. is the leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians. Today, Goeasy Ltd. serves its customers through two key operating divisions, Easyhome Leasing and Easyfinancial. Its web site is here Goeasy Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named.
This is not quite the same as pay day loans. They are called installment loans. But interest rates are very high. They are, in a nutshell, unsecured, high-interest, subprime, short-term loans. All you can say about the interest rate is that it is below 60%, which is at the criminal rate. See CBC article on this company here and another about Easyhome here.
I would not buy this company. There are complains about this company charging interest rates around the legal limit which is 60%. They may go over because of fees. Also, there are comments about how much it charges for people to buy from them on the installment plan. For example their SAMSUNG 58'' Smart LED TV is listed at $35 per months for 156 months. This is $5460.00. The Brick and Best Buy have it for $999.99. I check this online on May 22, 2015 here.
The positives are that this company has good growth in Revenue, Earnings and Cash Flow. Looking at Revenue, I see that it has grown by 11% and 11.4% per year over the past 5 and 10 years. Revenue per Share has grown at 8.3% and 8.1% per year over the past 5 and 10 years.
The total return over the past 5 years is very good, but not so much for the past 10 years. The total return is at 18.05% and 3.76% per year over the past 5 and 10 years. The portion of this growth attributable to capital gains is at 15.40% and 1.83% per year over the past 5 and 10 years. The portion of this growth attributable to dividends is at 1.95% and 3.04% per year over the past 5 and 10 years.
Some of the debt ratios are good. The Liquidity Ratio seems reasonable. However, they do not give you current assets on their balance sheets so you have to figure it out or accept what sites like Google Finance says. The Debt Ratios are fine with the one for 2015 at 1.73.
I find a lot more negatives, including the one mentioned above about this business this company is in. There was no dividend growth between 2010 and 2014 inclusive. Dividend increases were restarted in 2014 with an 11% rise. The last dividend increase was in 2016 and it was a 30% increase. Looking at dividend growth it is at 1.6% and 8% per year over the past 5 and 10 years. Dividend growth of 1.6% over the past 5 years is a very low growth.
The one thing about debt ratios that I do not like is the Long Term Debt to Market Capitalization. Long Term Debt is 90% of the market cap. A high long term debt to capitalization ratio would indicate the financial weakness of the firm and the debt would most likely increase the risk of the company. This is not a good thing.
Another negative is the Net Insider Selling. This is at 1.37% of market cap. This is relatively high. The median NIS for the stocks I follow is 0.02% and 75% are at 0.12% or lower.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.07, 11.28 and 13.70. The corresponding 10 year ratios are higher at 10.71, 14.50 and 18.29. The current P/E Ratio 8.12 based on 2016 EPS estimate of $2.34 and a stock price of $19.00. This stock price testing suggests that the stock price is relatively cheap.
I get an historical dividend yield of 2.42%. The current dividend yield is 13% higher at 2.74% based on a stock price of $19.00 and dividends of $0.52. This stock price testing suggests that the stock price is reasonable and below the median.
When I look at analysts' recommendations, I find Strong Buy and Buy recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price consensus is $31.21. This implies a total return of 67%, with 64.265 from capital gains and $2.74% from dividends.
Todd Miller on The Post talks about this company having a big run up on May 25, 2016 and that analysts that follow it mostly rate it a buy. It is interesting that the company announced a Point of Sale Financing Venture with Sears Canada. Fabrice Taylor wrote at the end of 2015 that he owns this stock. Obviously, people have different opinions to mine.
Yesterday on my other blog I wrote about the sectors I invest in compared to CDZ... learn more . The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC- ESVIF)... learn more on Monday, May 30, 2016 around 5 pm.
Goeasy Ltd. is the leading full service provider of goods and alternative financial services that improve the lives of everyday Canadians. Today, Goeasy Ltd. serves its customers through two key operating divisions, Easyhome Leasing and Easyfinancial. Its web site is here Goeasy Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, May 25, 2016
Reitmans (Canada) Ltd.
Sound bite for Twitter and StockTwits is: Probably cheap but certainly risky. I plan to hold on to the shares I have as I do expect (perhaps hope might be the better word) this stock to recover. They are trying to revamp their business. Will they recover before the next recession? See my spreadsheet on Reitmans (Canada) Ltd.
I own this stock of Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believe it will recover. I still believe it will recover so I continue to hold my shares and I also bought another 100 shares in April of this year.
I guess the question is: Have they made any progress? Note that financial year ends at the end of January each year, so we are dealing with the end of January 2016. Revenue was down only 0.02% in 2016 compared to declines of 2.2% and 4% in 2015 and 2014. Cash flow was down by 47% compared to a decline of 23% in 2015 and a gain of 63% in 2014. If you look at Cash Flow less Working Capital, the decline for 2016 was 17% compared to a decline of 7% in 2015 and 30% in 2014.
The company has generally made a profit, but they had an earnings loss in 2016 of $0.39. Analysts expect the company to again have a profit in 2017 of $0.09. You have to wonder if the stock price has hit the bottom yet. If not, it is probably close to it. It hit a low of $3.62 in January 2016 and has been above $4.00 since mid-February 2016.
The Dividend Payout Ratios for EPS are high and they have been high since 2012. I would like them to do better in EPS or perhaps cut the dividend again. High DPR for EPS often precedes dividend cuts. On a 5 year running average, the company has paid out 237% of Earnings in dividends. However, if the dividends for the past 5 years had been at $0.20 a share then they have paid out only 89% of the earnings.
If you look at DPR in connection with cash flow the DPR for the financial year ending in January 2016 is 28%. However, if you look at 5 year running averages, the DPR for CFPS is higher at 49%.
This company has always had very good debt ratios. They still do. The Liquidity Ratio for 2016 is 2.64. The Debt Ratio for 2016 is 3.37. For both this ratios you generally look for ones at 1.50 and above. Leverage and Debt/Equity Ratios are 1.42 and 0.42, respectively. Good debt ratios can get a company through really rough times.
Another positive is the insiders are buying, not selling. Mind you they are not buying much, but they are buying.
I will first look at the stock price in relation to Dividend Yield. However, this sometimes is not a good test when dividends are cut. The historical median yield is 3.11%. The current dividend yield is 4.72% a value some 51% higher. The current dividend is based on a dividend of $0.20 and a stock price of $4.24. This test would suggest that the stock price is relatively cheap.
However, the historical high yield is 8.36% and we are also far from this. As I had said, there is a problem when dividends are cut and you use dividend yield to test the stock price.
I get a Graham Price of $3.49 and the Price/Graham Price Ratio is 1.21 based on a stock price of $4.24. The 10 year P/GP Ratios are 0.99, 1.29 and 1.56. This stock price test suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Price/Book Value per Share Ratio of 1.89. The current P/B Ratio is 0.70 based on a stock price of $4.24 and BVPS of $6.02. The current ratio is some 63% below the 10 years median ratio. This stock price testing suggests that the stock price is relatively cheap. Also, on an absolute basis, a P/B Ratio of less than 1.00 suggests that the stock is selling below its breakup price and is therefore cheap.
The 5 year low, median and high median Price/Earnings per Share Ratios are 26.24, 32.95 and 38.59. The corresponding 10 year ratios are a lot lower at 11.94, 13.64 and 16.60. The corresponding historical ratios are close to the 10 year values at 10.16, 13.05and 15.47. The current P/E Ratio is 47.11 based on a stock price of $4.24 and 2017 EPS estimate of $0.09. This testing suggests that the stock price is relatively expensive. You are paying a lot of potentially little in earnings.
When I look at analysts' recommendations, I can find only one. That is a Hold recommendation. The 12 month stock price is given as $4.00. This is 5.7% lower than the current price of $4.24.
This article in the Chronicle Herald talks about Reitmans' laying off 10% of their head office staff to save money. This press release talks about Reitmans new activewear banner called Hyba . This article by Eva Friede in the Montreal Gazette talks about Hyba stores replacing Smart Set stores and other moves by Reitmans. En Passant at Seeking Alpha has an interesting and positive take on Reitmans.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more . On my other blog tomorrow I will write about the sectors I invest in compared to CDZ... learn more on Thursday, May 26, 2016 around 5 pm.
Reitmans (Canada) Limited is a Canada-based company engaged in the sale of women's specialty apparel at retail. The Company operates retail banners: Reitmans, Penningtons, Addition Elle, RW & CO., Thyme Maternity, Smart Set and Hyba. Its web site is here Reitmans (Canada) Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believe it will recover. I still believe it will recover so I continue to hold my shares and I also bought another 100 shares in April of this year.
I guess the question is: Have they made any progress? Note that financial year ends at the end of January each year, so we are dealing with the end of January 2016. Revenue was down only 0.02% in 2016 compared to declines of 2.2% and 4% in 2015 and 2014. Cash flow was down by 47% compared to a decline of 23% in 2015 and a gain of 63% in 2014. If you look at Cash Flow less Working Capital, the decline for 2016 was 17% compared to a decline of 7% in 2015 and 30% in 2014.
The company has generally made a profit, but they had an earnings loss in 2016 of $0.39. Analysts expect the company to again have a profit in 2017 of $0.09. You have to wonder if the stock price has hit the bottom yet. If not, it is probably close to it. It hit a low of $3.62 in January 2016 and has been above $4.00 since mid-February 2016.
The Dividend Payout Ratios for EPS are high and they have been high since 2012. I would like them to do better in EPS or perhaps cut the dividend again. High DPR for EPS often precedes dividend cuts. On a 5 year running average, the company has paid out 237% of Earnings in dividends. However, if the dividends for the past 5 years had been at $0.20 a share then they have paid out only 89% of the earnings.
If you look at DPR in connection with cash flow the DPR for the financial year ending in January 2016 is 28%. However, if you look at 5 year running averages, the DPR for CFPS is higher at 49%.
This company has always had very good debt ratios. They still do. The Liquidity Ratio for 2016 is 2.64. The Debt Ratio for 2016 is 3.37. For both this ratios you generally look for ones at 1.50 and above. Leverage and Debt/Equity Ratios are 1.42 and 0.42, respectively. Good debt ratios can get a company through really rough times.
Another positive is the insiders are buying, not selling. Mind you they are not buying much, but they are buying.
I will first look at the stock price in relation to Dividend Yield. However, this sometimes is not a good test when dividends are cut. The historical median yield is 3.11%. The current dividend yield is 4.72% a value some 51% higher. The current dividend is based on a dividend of $0.20 and a stock price of $4.24. This test would suggest that the stock price is relatively cheap.
However, the historical high yield is 8.36% and we are also far from this. As I had said, there is a problem when dividends are cut and you use dividend yield to test the stock price.
I get a Graham Price of $3.49 and the Price/Graham Price Ratio is 1.21 based on a stock price of $4.24. The 10 year P/GP Ratios are 0.99, 1.29 and 1.56. This stock price test suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Price/Book Value per Share Ratio of 1.89. The current P/B Ratio is 0.70 based on a stock price of $4.24 and BVPS of $6.02. The current ratio is some 63% below the 10 years median ratio. This stock price testing suggests that the stock price is relatively cheap. Also, on an absolute basis, a P/B Ratio of less than 1.00 suggests that the stock is selling below its breakup price and is therefore cheap.
The 5 year low, median and high median Price/Earnings per Share Ratios are 26.24, 32.95 and 38.59. The corresponding 10 year ratios are a lot lower at 11.94, 13.64 and 16.60. The corresponding historical ratios are close to the 10 year values at 10.16, 13.05and 15.47. The current P/E Ratio is 47.11 based on a stock price of $4.24 and 2017 EPS estimate of $0.09. This testing suggests that the stock price is relatively expensive. You are paying a lot of potentially little in earnings.
When I look at analysts' recommendations, I can find only one. That is a Hold recommendation. The 12 month stock price is given as $4.00. This is 5.7% lower than the current price of $4.24.
This article in the Chronicle Herald talks about Reitmans' laying off 10% of their head office staff to save money. This press release talks about Reitmans new activewear banner called Hyba . This article by Eva Friede in the Montreal Gazette talks about Hyba stores replacing Smart Set stores and other moves by Reitmans. En Passant at Seeking Alpha has an interesting and positive take on Reitmans.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more . On my other blog tomorrow I will write about the sectors I invest in compared to CDZ... learn more on Thursday, May 26, 2016 around 5 pm.
Reitmans (Canada) Limited is a Canada-based company engaged in the sale of women's specialty apparel at retail. The Company operates retail banners: Reitmans, Penningtons, Addition Elle, RW & CO., Thyme Maternity, Smart Set and Hyba. Its web site is here Reitmans (Canada) Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Tuesday, May 24, 2016
McCoy Global Inc.
Since Monday was a holiday, I did not know what to do today. Do a review of a company or write something for my Investing, Economic blog? I decided to do both. On my other blog today, I am writing about our Native peoples. They live in poverty, so that is an economic problem as well as a social problem. See blog on maybe ordinary families should get involved and sponsor Native families as they have sponsored immigrant families here.
I also have an anniversary of sorts. It was May 21, 2008 when I started this blog, so I guess I now have an 8 year anniversary.
Sound bite for Twitter and StockTwits is: Cheap and risky. I have not given up on this stock. Because it is so cheap, I bought some more with the dividend income I had in my TFSA account. See my spreadsheet on McCoy Global Inc.
I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. 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.
This is one of my stocks that have suspensed its dividend. This is hardly surprising. The company had an earnings loss in 2015 and analysts expect that there will be earnings losses in 2016 and 2017 also. It is not surprising they are having difficulties because they supply services to the energy business.
Last year, 2015, was not a good year for this company. Not only did they have an earnings loss, but Revenue was down by 30% and Cash Flow was down by 37%. The company hit a peak in stock prices in 2014 at $7.56. So far this year stock prices are down by almost 20% and they are also some 77% below their peak.
Things that I like are that their debt ratios are good and they have lots of cash on hand. The Liquidity Ratio is 6.93 their Debt Ratio is 8.44. When ideal ratios for both of these ratios is 1.50 or higher these are very good ratios. It suggests that the company can weather most economic storms.
They have cash on hand that equals 46% of the stock price or $0.79. So you might consider the stock price not at $1.71 of the TSX, but at $0.92. That is $1.71 less cash on hand of $0.79.
The only real stock price test that you can do on this stock is the Price/Book Value per Share Ratio test. The 10 year P/B Ratio is 1.32. The current P/B Ratio is 0.56 based on BVPS of $3.06 and a stock price of $1.71. The current P/B Ratio is some 58% lower than the 10 year ratio. It is also under 1.00. This means that the stock price is less than the BVPS price.
When I look at analysts' recommendations, I find 3 at Hold. The 12 month consensus stock price is $1.93. This suggests a total return of $12.87% all from capital gains.
The company announced first quarterly results on News Wire. The CEO says that the ongoing deterioration of industry fundamentals has reduced customer spending to unprecedented levels, which continues to negatively impact McCoy Global's performance. On the Proactive Investors and article is written about the decline in stock price due to dividend suspension. Ryan Modesto of 5i Research talks about no dividends being safe in an article in the Globe and Mail.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was about Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more . The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Wednesday, May 25, 2016 around 5 pm.
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 Global Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I also have an anniversary of sorts. It was May 21, 2008 when I started this blog, so I guess I now have an 8 year anniversary.
Sound bite for Twitter and StockTwits is: Cheap and risky. I have not given up on this stock. Because it is so cheap, I bought some more with the dividend income I had in my TFSA account. See my spreadsheet on McCoy Global Inc.
I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. 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.
This is one of my stocks that have suspensed its dividend. This is hardly surprising. The company had an earnings loss in 2015 and analysts expect that there will be earnings losses in 2016 and 2017 also. It is not surprising they are having difficulties because they supply services to the energy business.
Last year, 2015, was not a good year for this company. Not only did they have an earnings loss, but Revenue was down by 30% and Cash Flow was down by 37%. The company hit a peak in stock prices in 2014 at $7.56. So far this year stock prices are down by almost 20% and they are also some 77% below their peak.
Things that I like are that their debt ratios are good and they have lots of cash on hand. The Liquidity Ratio is 6.93 their Debt Ratio is 8.44. When ideal ratios for both of these ratios is 1.50 or higher these are very good ratios. It suggests that the company can weather most economic storms.
They have cash on hand that equals 46% of the stock price or $0.79. So you might consider the stock price not at $1.71 of the TSX, but at $0.92. That is $1.71 less cash on hand of $0.79.
The only real stock price test that you can do on this stock is the Price/Book Value per Share Ratio test. The 10 year P/B Ratio is 1.32. The current P/B Ratio is 0.56 based on BVPS of $3.06 and a stock price of $1.71. The current P/B Ratio is some 58% lower than the 10 year ratio. It is also under 1.00. This means that the stock price is less than the BVPS price.
When I look at analysts' recommendations, I find 3 at Hold. The 12 month consensus stock price is $1.93. This suggests a total return of $12.87% all from capital gains.
The company announced first quarterly results on News Wire. The CEO says that the ongoing deterioration of industry fundamentals has reduced customer spending to unprecedented levels, which continues to negatively impact McCoy Global's performance. On the Proactive Investors and article is written about the decline in stock price due to dividend suspension. Ryan Modesto of 5i Research talks about no dividends being safe in an article in the Globe and Mail.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was about Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more . The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Wednesday, May 25, 2016 around 5 pm.
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 Global Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Friday, May 20, 2016
Husky Energy Inc.
Sound bite for Twitter and StockTwits is: Stock is cheap. You should buy stock when they are cheap. Yes, it is a risk, but seldom do good companies have stock sales. See my spreadsheet on Husky Energy Inc.
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). When I sold some of my SNC-Lavalin in 2008, I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and at that time they have been making money.
The dividends have gone up and down in the past but have held steady since 2010. The last dividend was paid in stocks and cash. Husky is saving its cash and at present will pay dividends in stocks with cash in place of partial shares. Most sites are treating this as a stock split, but I have not and I am treating it as dividend. I will decide what to do about odd shares I hold after dividends are restored.
They are correct in doing something about dividends. They currently cannot afford to pay them. Last year dividends equaled 100% of EPS. This year they had an earnings loss. I think that they should have suspended dividends, but this works also. UPDATE: Husky has suspended dividends. They were not paid in April 2016.
It is not surprise that revenue, earnings and cash flow growth is negative. Oil prices are currently very low and it is causing problems for oil companies. I have lost money on this stock. I bought in 2008 and 2010. I have a loss of 6.08% per year with a capital loss of 10.54% per year and dividends at 4.46% per year. My total loss in stock price is 54%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.90, 12.52 and 14.14. The corresponding 10 year ratios are 10.27, 11.84 and 13.57. The corresponding historical ratios are 9.64, 11.50 and 14.15. (I have 26 years of data.) Since the 2015 EPS was negative and the 2016 EPS estimate is negative, you really cannot do any testing using P/E Ratios. However, this information may become handy in the future.
I get a Graham Price of $10.22. The 10 year low, median and high medina Price/Graham Price Ratios are 0.94, 1.12 and 1.33. The current P/GP Ratio is 1.46. This testing would suggest that the stock price is expensive. However, this is because of current problems. The Graham Price in 2014 was $23.45 and probably will be around $23.38 in 2018. I would seem that this is not a great test for the current stock price.
The current dividend yield is 8.06% based on dividends $1.20 which is being paid for in stock and cash. The historical high is lower by 18% at 6.81%. The historical median dividend yield is lower by 98% at 4.07%. From this point of view, the current stock price of $14.88.
The other good test for this stock is the Price/Book Value per Share Ratio test. The 10 year P/B Ratio is 1.55. The current P/B Ratio based on BVPS of $15.23 and a stock price of $14.88 is 0.96. The current P/B Ratio is some 38% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. On an absolute basis, the stock price is lower than the BVPS. This says that the stock is cheap.
When I look at analysts' recommendation, I find Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus recommendation is Hold. The 12 month stock price consensus is $18.63. This implies a total return of 33.27% with 25.20% from capital gains and 8.06% from dividends. However, since dividend could be in stock and cash, you may not get 8.06% from dividends.
Rebecca Penty in an article in the Financial Post talks about Husky getting $1.7B in relieve from Li Ka-Shing, Hong Kong's riches man and Husky's largest shareholder. Claudia Cattaneo write an article in the Financial Post in which she said that the CEO Asim Ghosh wants to see stability in the oil business before restoring investment and dividends. Ryan Vanzo of Motley Fool says that Husky is now positioned to not only weather the current downturn, but be very profitable when markets stabilize.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
Yesterday on my other blog I wrote about Dividend Yield Testing... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more probably on Tuesday May 24, 2016 around 5 pm.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). It is listed under TSX Energy Index. Its web site is here Husky Energy Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). When I sold some of my SNC-Lavalin in 2008, I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and at that time they have been making money.
The dividends have gone up and down in the past but have held steady since 2010. The last dividend was paid in stocks and cash. Husky is saving its cash and at present will pay dividends in stocks with cash in place of partial shares. Most sites are treating this as a stock split, but I have not and I am treating it as dividend. I will decide what to do about odd shares I hold after dividends are restored.
They are correct in doing something about dividends. They currently cannot afford to pay them. Last year dividends equaled 100% of EPS. This year they had an earnings loss. I think that they should have suspended dividends, but this works also. UPDATE: Husky has suspended dividends. They were not paid in April 2016.
It is not surprise that revenue, earnings and cash flow growth is negative. Oil prices are currently very low and it is causing problems for oil companies. I have lost money on this stock. I bought in 2008 and 2010. I have a loss of 6.08% per year with a capital loss of 10.54% per year and dividends at 4.46% per year. My total loss in stock price is 54%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.90, 12.52 and 14.14. The corresponding 10 year ratios are 10.27, 11.84 and 13.57. The corresponding historical ratios are 9.64, 11.50 and 14.15. (I have 26 years of data.) Since the 2015 EPS was negative and the 2016 EPS estimate is negative, you really cannot do any testing using P/E Ratios. However, this information may become handy in the future.
I get a Graham Price of $10.22. The 10 year low, median and high medina Price/Graham Price Ratios are 0.94, 1.12 and 1.33. The current P/GP Ratio is 1.46. This testing would suggest that the stock price is expensive. However, this is because of current problems. The Graham Price in 2014 was $23.45 and probably will be around $23.38 in 2018. I would seem that this is not a great test for the current stock price.
The current dividend yield is 8.06% based on dividends $1.20 which is being paid for in stock and cash. The historical high is lower by 18% at 6.81%. The historical median dividend yield is lower by 98% at 4.07%. From this point of view, the current stock price of $14.88.
The other good test for this stock is the Price/Book Value per Share Ratio test. The 10 year P/B Ratio is 1.55. The current P/B Ratio based on BVPS of $15.23 and a stock price of $14.88 is 0.96. The current P/B Ratio is some 38% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. On an absolute basis, the stock price is lower than the BVPS. This says that the stock is cheap.
When I look at analysts' recommendation, I find Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus recommendation is Hold. The 12 month stock price consensus is $18.63. This implies a total return of 33.27% with 25.20% from capital gains and 8.06% from dividends. However, since dividend could be in stock and cash, you may not get 8.06% from dividends.
Rebecca Penty in an article in the Financial Post talks about Husky getting $1.7B in relieve from Li Ka-Shing, Hong Kong's riches man and Husky's largest shareholder. Claudia Cattaneo write an article in the Financial Post in which she said that the CEO Asim Ghosh wants to see stability in the oil business before restoring investment and dividends. Ryan Vanzo of Motley Fool says that Husky is now positioned to not only weather the current downturn, but be very profitable when markets stabilize.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
Yesterday on my other blog I wrote about Dividend Yield Testing... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more probably on Tuesday May 24, 2016 around 5 pm.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). It is listed under TSX Energy Index. Its web site is here Husky Energy Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, May 18, 2016
Automodular Corp.
Sound bite for Twitter and StockTwits is: You should never put into such things money you cannot afford to lose. That is why my investment is so small, but it is a fun investment. I hope that the management of this company will be able to pick up something that they want to do. See my spreadsheet on Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). In January 2012, I went looking for some dividend paying small cap to soak up extra money in the TFSA. This is one of the stocks that I found to soak up extra cash in the TFSA.
In December of 2014, Automodular Corporation shipped its final modules to Ford's Oakville Assembly Plant. Since then the company has no business and is looking for some.
The company last had revenue in 2014. They have cash on hand that currently equals 102% of the market cap. They have discontinued their dividend. They were always rather hit and miss about dividends in the past so this is not so surprising. They have been buying back shares on the open market.
Since I bought this stock in 2012 I have made a 17.1% per year return with 6.14% per year from capital gains and 10.96% per year from dividends. I only invested around $1,000 in three separate investment in this company and I am holding on to the shares to see how this all ends.
Since the cash on hand equals the current stock price, I can see no advantage in buying this stock. This is around $2.49 a share. However, when the company was buying back shares recently they were paying $2.53 and $2.65 per share.
It would be great if they find something else to do. According to the history on their website they have been involved in a number of different business over time. One problem is that this is not the best of economic times. It has been a very long slow recovery from the last recession and it looks like we will not completely recover from that recession before we get to the next.
Alec Mazo talked about this stock in August 2015 on Seeking Alpha. Nothing much has changed. The most recent news is in April 2016 when Automodular Corp announced a Dutch auction to buy back shares.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here.
Yesterday on my other blog I wrote about Me and CDZ... learn more . The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Friday, May 20, 2016 around 5 pm.
Automodular Corporation currently has no business. Its web site is here Automodular Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). In January 2012, I went looking for some dividend paying small cap to soak up extra money in the TFSA. This is one of the stocks that I found to soak up extra cash in the TFSA.
In December of 2014, Automodular Corporation shipped its final modules to Ford's Oakville Assembly Plant. Since then the company has no business and is looking for some.
The company last had revenue in 2014. They have cash on hand that currently equals 102% of the market cap. They have discontinued their dividend. They were always rather hit and miss about dividends in the past so this is not so surprising. They have been buying back shares on the open market.
Since I bought this stock in 2012 I have made a 17.1% per year return with 6.14% per year from capital gains and 10.96% per year from dividends. I only invested around $1,000 in three separate investment in this company and I am holding on to the shares to see how this all ends.
Since the cash on hand equals the current stock price, I can see no advantage in buying this stock. This is around $2.49 a share. However, when the company was buying back shares recently they were paying $2.53 and $2.65 per share.
It would be great if they find something else to do. According to the history on their website they have been involved in a number of different business over time. One problem is that this is not the best of economic times. It has been a very long slow recovery from the last recession and it looks like we will not completely recover from that recession before we get to the next.
Alec Mazo talked about this stock in August 2015 on Seeking Alpha. Nothing much has changed. The most recent news is in April 2016 when Automodular Corp announced a Dutch auction to buy back shares.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here.
Yesterday on my other blog I wrote about Me and CDZ... learn more . The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Friday, May 20, 2016 around 5 pm.
Automodular Corporation currently has no business. Its web site is here Automodular Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, May 16, 2016
Ag Growth International
Sound bite for Twitter and StockTwits is: Price reasonable, below median. This stock price currently looks good. I am holding on to my shares as I think that eventually, this stock will again be a dividend growth stock. This is a good diversification for my portfolio. See my spreadsheet on Ag Growth International .
I own this stock of Ag Growth International (TSX-AFN, OTC- AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company. This company has had some problems lately, but none of it has changed my mind about keeping this stock.
This company used to be an income trust. Prior to changing to a corporation, this stock was increasing their dividends. After the change, the dividends have remained flat. The last year of a dividend increase was 2011. As under an income trust, the dividends are still paid monthly.
This company has not been able to afford its dividends since 2010. It has been a long slow recovery since the last recession and this has affected a lot of companies. Year 2015 was not a good year for this company as it had an earnings loss. The company did better for the first quarter of 2016. Analysts expect that the company will do better in 2016 and be able to cover the dividend with earnings. They do not expect the company to cut the dividends.
Outstanding shares have been increasing. The outstanding shares have increased by 3.3% and 3.8% per year over the past 5 and 10 years. So as a shareholder, I am more interested in the per share growth to judge if the company has growth. For example, Revenue is up by 11.4% and 18.3% per year over the past 5 and 10 years. Revenue per Share is up by 7.8% and 14% per year over the past 5 and 10 years. There is a difference in growth and the real growth is the per share growth. It is still quite good.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.22, 21.44 and 28.08. The corresponding 10 year values are 13.02, 18.86 and 24.27. I have 12 years of data and over this period the median values even lower at 10.83, 16.00 and 21.17. The current P/E Ratio is 15.51 based on a stock price of $38.15 and 2016 EPS estimate of $2.46. This stock price testing suggests that the stock price is reasonable and below the median.
I get a Graham Price of $28.28. The 10 years Price/Graham Price Ratios are 1.11, 1.53 and 1.96. The current P/GR Ratio is 1.30 based on a stock price of $38.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Price/Book Value per Share Ratio of 2.56. The current P/B Ratio is 2.46 based on a stock price of $38.15 and BVPS of $15.49. The current P/B Ratio is some 3.9% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
You cannot really do a test based on dividend yield because this company used to be an income trust. However, the 5 year median Dividend Yield is 5.78% and the current Dividend Yield at 6.29% is some 8.8% higher. The current Dividend Yield is based on dividends of $2.40 and a stock price of $38.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year P/S Ratio is 1.66. The current P/S Ratio is 0.99 based on 2016 Revenue estimate of $561M, Revenue per Share estimate of $38.45and stock price of $38.15. The current P/S Ratio is some 40% lower than the 10 year P/S Ratio. This stock price testing suggests that the stock price is relatively cheap.
The 10 year Price/Cash Flow per Share Ratio is 10.75. The current P/CF Ratio is 8.79 based on 2016 estimate for CFPS of $4.34. The current ratio is 18% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. The current ratio would have to be 20% lower than the 10 year ratio for the stock price to be considered cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. There is more Buy than Hold recommendations and the consensus recommendation is a Buy. The 12 month stock price consensus is $37.79. This is a stock price below the current price and implies a total return of 5.35% with 6.29% from dividends and a capital loss of $0.94%.
See what analysts are saying about this stock on Stock Chase . They had problems last year because of drought and the stock was oversold. The company says they will not cut dividends. On Seeking Alpha you often get transcripts and this one is the Q1 2016 Earnings Conference Call of May 5, 2016. I find analysis more interesting and Cameron Conway did one last year at Seeking Alpha.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here andhere.
The last stock I wrote about was about was Progressive Waste Solutions Ltd (TSX-BIN, NYSE-BIN)... learn more . Tomorrow on my other blog I will write about Me and CDZ... learn more on Tuesday, May 17, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Art of Risk by Kayt Sukel learn more...
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland. Its web site is here Ag Growth International .
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
The Art of Risk by Kayt Sukel
This book's full title is The Art of Risk: The New Science of Courage, Caution and Chance. Kayt Sukel has her own web site for this book here. There is a blog on her site.
I am interested in risk because I make my living investing in the stock market. I did not really learn anything new from this book, so that was a bit of a disappointment. I have always understood myself very well. I also get prepared by investigating stocks I invest in. Why I continued reading this book was because it was an easy read with some interesting stories
People at Good Reads mostly liked it. But they did not seem to get much more out of the book than I did. There is a review at Kirkus. Reviewer ends up saying about the book and risk that it was "Not an in-depth trip but an enjoyable tour".
Kayt Sukel talks at TedMed about risk. This is a bit off topic, but in this video Kayt Sukel talks about another of her books about Sex at Chicago Ideas Week. This is Your Brain on Sex is the name of the book. This is a video of Kayt Sukel being interviewed on radio. There is also a nice review by Meredith Knight on Scientific American.
An index of the books I have reviewed are on my website at Books. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
I own this stock of Ag Growth International (TSX-AFN, OTC- AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company. This company has had some problems lately, but none of it has changed my mind about keeping this stock.
This company used to be an income trust. Prior to changing to a corporation, this stock was increasing their dividends. After the change, the dividends have remained flat. The last year of a dividend increase was 2011. As under an income trust, the dividends are still paid monthly.
This company has not been able to afford its dividends since 2010. It has been a long slow recovery since the last recession and this has affected a lot of companies. Year 2015 was not a good year for this company as it had an earnings loss. The company did better for the first quarter of 2016. Analysts expect that the company will do better in 2016 and be able to cover the dividend with earnings. They do not expect the company to cut the dividends.
Outstanding shares have been increasing. The outstanding shares have increased by 3.3% and 3.8% per year over the past 5 and 10 years. So as a shareholder, I am more interested in the per share growth to judge if the company has growth. For example, Revenue is up by 11.4% and 18.3% per year over the past 5 and 10 years. Revenue per Share is up by 7.8% and 14% per year over the past 5 and 10 years. There is a difference in growth and the real growth is the per share growth. It is still quite good.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.22, 21.44 and 28.08. The corresponding 10 year values are 13.02, 18.86 and 24.27. I have 12 years of data and over this period the median values even lower at 10.83, 16.00 and 21.17. The current P/E Ratio is 15.51 based on a stock price of $38.15 and 2016 EPS estimate of $2.46. This stock price testing suggests that the stock price is reasonable and below the median.
I get a Graham Price of $28.28. The 10 years Price/Graham Price Ratios are 1.11, 1.53 and 1.96. The current P/GR Ratio is 1.30 based on a stock price of $38.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Price/Book Value per Share Ratio of 2.56. The current P/B Ratio is 2.46 based on a stock price of $38.15 and BVPS of $15.49. The current P/B Ratio is some 3.9% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
You cannot really do a test based on dividend yield because this company used to be an income trust. However, the 5 year median Dividend Yield is 5.78% and the current Dividend Yield at 6.29% is some 8.8% higher. The current Dividend Yield is based on dividends of $2.40 and a stock price of $38.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year P/S Ratio is 1.66. The current P/S Ratio is 0.99 based on 2016 Revenue estimate of $561M, Revenue per Share estimate of $38.45and stock price of $38.15. The current P/S Ratio is some 40% lower than the 10 year P/S Ratio. This stock price testing suggests that the stock price is relatively cheap.
The 10 year Price/Cash Flow per Share Ratio is 10.75. The current P/CF Ratio is 8.79 based on 2016 estimate for CFPS of $4.34. The current ratio is 18% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. The current ratio would have to be 20% lower than the 10 year ratio for the stock price to be considered cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. There is more Buy than Hold recommendations and the consensus recommendation is a Buy. The 12 month stock price consensus is $37.79. This is a stock price below the current price and implies a total return of 5.35% with 6.29% from dividends and a capital loss of $0.94%.
See what analysts are saying about this stock on Stock Chase . They had problems last year because of drought and the stock was oversold. The company says they will not cut dividends. On Seeking Alpha you often get transcripts and this one is the Q1 2016 Earnings Conference Call of May 5, 2016. I find analysis more interesting and Cameron Conway did one last year at Seeking Alpha.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here andhere.
The last stock I wrote about was about was Progressive Waste Solutions Ltd (TSX-BIN, NYSE-BIN)... learn more . Tomorrow on my other blog I will write about Me and CDZ... learn more on Tuesday, May 17, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Art of Risk by Kayt Sukel learn more...
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland. Its web site is here Ag Growth International .
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
The Art of Risk by Kayt Sukel
This book's full title is The Art of Risk: The New Science of Courage, Caution and Chance. Kayt Sukel has her own web site for this book here. There is a blog on her site.
I am interested in risk because I make my living investing in the stock market. I did not really learn anything new from this book, so that was a bit of a disappointment. I have always understood myself very well. I also get prepared by investigating stocks I invest in. Why I continued reading this book was because it was an easy read with some interesting stories
People at Good Reads mostly liked it. But they did not seem to get much more out of the book than I did. There is a review at Kirkus. Reviewer ends up saying about the book and risk that it was "Not an in-depth trip but an enjoyable tour".
Kayt Sukel talks at TedMed about risk. This is a bit off topic, but in this video Kayt Sukel talks about another of her books about Sex at Chicago Ideas Week. This is Your Brain on Sex is the name of the book. This is a video of Kayt Sukel being interviewed on radio. There is also a nice review by Meredith Knight on Scientific American.
An index of the books I have reviewed are on my website at Books. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Friday, May 13, 2016
Progressive Waste Solutions Ltd.
Sound bite for Twitter and StockTwits is: Stock is relatively expensive. It is probably a good time for me to sell this stock. It is estimated that BIN will end up with 30% of the new company after the merger. See my spreadsheet on Progressive Waste Solutions Ltd.
I no longer own this stock of Progressive Waste Solutions Ltd (TSX-BIN, NYSE-BIN). I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. I bought more in 2010. I sold this stock today. BIN is merging with a US company of Waste Connections, Inc. (NYSE: WCN). This is not the company I bought and also they are going to lower their dividends. The new company will have dividend yields to match WCN, which is less 1%. I replaced this company with WSP Global Inc. (TSX-WSP, OTC- WSPOF)
I did well with this stock. I earned total return of 10.68% per year with 2.37% per year from dividends and 8.31% per year from capital gain. I had this stock for some 8.5 years and the dividends paid $4.57 per share again my average price of $24.88 per share.
This company is merging with Waste Connections, Inc. (NYSE: WCN). One of the things that BIN has said is that they will harmonize their dividends with the WCN. WCN's dividend yield is 0.85% currently. BIN just reduced their dividends by some 35%, but since the dividend yield is currently at 1.02% with this cut, I would expect further cuts.
Also, I would expect, since BIN is the junior partner that future dividends will be in US$. The problems with receiving dividends in US$, is that you never quite know how much you will be getting because they are constantly changing with the currency exchange. BIN already reports in US$ so this will not change.
It is really hard to know how this company will change in the future because of the merger. It is considered a Tax Inversion. In theory, BIN is taking over WCN and the Head Office will be in Canada. This is a risk that the merger will not occur, but this is probably small.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.18, 22.58 and 26.08. The corresponding 10 year ratios are 19.36, 23.12 and 28.11. The historical ratios are 21.06, 26.62 and 33.20. The current P/E Ratio is 30.53 based on a stock price of $43.12 and 2016 EPS estimate of $1.09. This testing would suggest that the stock price is relatively expensive or getting there.
I get a Graham price of $20.72. The 10 year low, median and high median Price/Graham Price Ratios are 1.29, 1.49 and 1.75. The current P/GP Ratio is 2.08 based on a stock price $43.12. This stock price testing suggests that the stock is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.00. The current P/B Ratio is 3.19 a value some 60% higher. The current P/B Ratio is based on BVPS of $13.51 and a stock price of $43.12. This stock price testing suggests that the stock price is relatively expensive.
You cannot really test on dividend yield. This is for a couple of reasons. This stock used to be an income trust and as such had quite high dividend yields. The dividends have recently been cut. Currently the dividend yield at 1.02% is based on dividends of $0.44 and a stock price of $43.12. Even without the dividend cut, the yield would be 1.53%, which would still be one of the lowest levels for this stock.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. There are more Hold recommendations, but the consensus recommendation is a Buy. The 12 month stock price is $33.30 US$. The current stock price is $33.34 which is almost the same.
Sylvia Delisle on Risers and Fallers talks about recent changes to analysts' recommendations. This press release on EIN News talks about BIN's first quarterly results and about voting for proposed combination with Waste Connections Inc. Alpha Gen Capital talks about the merger with WCN on Seeking Alpha. See some analysts' comments on Stock Chase. David Paddon of the The Canadian Press wrote an article for CTV News about the merger with WCN.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here and here.
Yesterday on my other blog I wrote about Sectors I Invest In... learn more . The next stock I will write about will be Ag Growth International (TSX-AFN, OTC-AGGZF)... learn more on Monday, May 16 around 5 pm.
Progressive Waste Solutions Ltd. are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. The fund operates through its subsidiaries. Its web site is here Progressive Waste Solutions Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I no longer own this stock of Progressive Waste Solutions Ltd (TSX-BIN, NYSE-BIN). I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. I bought more in 2010. I sold this stock today. BIN is merging with a US company of Waste Connections, Inc. (NYSE: WCN). This is not the company I bought and also they are going to lower their dividends. The new company will have dividend yields to match WCN, which is less 1%. I replaced this company with WSP Global Inc. (TSX-WSP, OTC- WSPOF)
I did well with this stock. I earned total return of 10.68% per year with 2.37% per year from dividends and 8.31% per year from capital gain. I had this stock for some 8.5 years and the dividends paid $4.57 per share again my average price of $24.88 per share.
This company is merging with Waste Connections, Inc. (NYSE: WCN). One of the things that BIN has said is that they will harmonize their dividends with the WCN. WCN's dividend yield is 0.85% currently. BIN just reduced their dividends by some 35%, but since the dividend yield is currently at 1.02% with this cut, I would expect further cuts.
Also, I would expect, since BIN is the junior partner that future dividends will be in US$. The problems with receiving dividends in US$, is that you never quite know how much you will be getting because they are constantly changing with the currency exchange. BIN already reports in US$ so this will not change.
It is really hard to know how this company will change in the future because of the merger. It is considered a Tax Inversion. In theory, BIN is taking over WCN and the Head Office will be in Canada. This is a risk that the merger will not occur, but this is probably small.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.18, 22.58 and 26.08. The corresponding 10 year ratios are 19.36, 23.12 and 28.11. The historical ratios are 21.06, 26.62 and 33.20. The current P/E Ratio is 30.53 based on a stock price of $43.12 and 2016 EPS estimate of $1.09. This testing would suggest that the stock price is relatively expensive or getting there.
I get a Graham price of $20.72. The 10 year low, median and high median Price/Graham Price Ratios are 1.29, 1.49 and 1.75. The current P/GP Ratio is 2.08 based on a stock price $43.12. This stock price testing suggests that the stock is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.00. The current P/B Ratio is 3.19 a value some 60% higher. The current P/B Ratio is based on BVPS of $13.51 and a stock price of $43.12. This stock price testing suggests that the stock price is relatively expensive.
You cannot really test on dividend yield. This is for a couple of reasons. This stock used to be an income trust and as such had quite high dividend yields. The dividends have recently been cut. Currently the dividend yield at 1.02% is based on dividends of $0.44 and a stock price of $43.12. Even without the dividend cut, the yield would be 1.53%, which would still be one of the lowest levels for this stock.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. There are more Hold recommendations, but the consensus recommendation is a Buy. The 12 month stock price is $33.30 US$. The current stock price is $33.34 which is almost the same.
Sylvia Delisle on Risers and Fallers talks about recent changes to analysts' recommendations. This press release on EIN News talks about BIN's first quarterly results and about voting for proposed combination with Waste Connections Inc. Alpha Gen Capital talks about the merger with WCN on Seeking Alpha. See some analysts' comments on Stock Chase. David Paddon of the The Canadian Press wrote an article for CTV News about the merger with WCN.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here and here.
Yesterday on my other blog I wrote about Sectors I Invest In... learn more . The next stock I will write about will be Ag Growth International (TSX-AFN, OTC-AGGZF)... learn more on Monday, May 16 around 5 pm.
Progressive Waste Solutions Ltd. are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. The fund operates through its subsidiaries. Its web site is here Progressive Waste Solutions Ltd.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, May 11, 2016
WSP Global Inc.
Sound bite for Twitter and StockTwits is: Price looks reasonable. The dividend yield is good, but it remains to be seen if this will turn into a dividend growth stock. There is a good possibility. They did increase dividends prior to changing to a corporation. See my spreadsheet on WSP Global Inc.
I own this stock of WSP Global Inc. (TSX-WSP, OTC- WSPOF). In September 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont and I bought more Genivar, now called WSP Global. I am considering replacing Progressive Waste Solutions (TSX-BIN, NYSE-BIN). So, I am looking at MacDonald, Dettwiler & Associates which is Tech as I have little in Tech and this stock which is an industrial as is Progressive Waste.
This company started out in 2006 as an income trust. It at first raised its dividends between 2006 and 2009, but afterwards kept the dividends flat. They could not really afford the dividend being paid as Dividend Payout Ratio for EPS was higher than 100% from 2012 to 2014.
I have done well on this stock, but then I have done well on all my stocks that converted from Income Trust to corporations. I have had this stock since 2011 or 4.6 years. My total return is 19.29%^ with 13.62% from capital gains and 5.67% from dividends. This unlikely to be repeated as dividend rates are lower and the lowering of dividend yields caused the stock price to go up. It was thought that dividend yields on income trusts that changed to corporations would be around 4 to 5%. This stock has a current yield of 3.68% based on dividends of $1.50 and a stock price of $40.76. Then again the dividend yield on this stock did not get as high as the dividend yield on other income trust stocks.
Some analysts feel that dividends will be cut. The company does not say this and DPR for EPS for 2015 was 73% and the DPR for CFPS for 2015 was 42%. The DPR for EPS for 2016 is expected to be 67% and the DPR for CFPS is expected to be 123%. The analyst's values for EPS/CF Ratio for 2016 would be 1.83. However, the 10 year median value for this ratio is 0.47 and the highest it has ever been is 0.70. So I have to wonder about the analysts' values for 2016 for CFPS.
The outstanding shares are increasing a lot. The 5 and 10 year growth in outstanding shares is 40.5% and 29.1% per year. There is nothing inherently wrong with increasing shares, but it does mean that I as a shareholder am much more interested in per share values to judge growth. Growth is non-existent to good.
The worse growth is in CFPS and the 5 and 8 year growth is at a negative 4.6% and a positive 1.6%. Cash Flow growth over the past 5 and 10 years is at 34% and 31.2% per year. The best growth is in Revenue and it has grown at 59.9% and 46.9% per year over the past 5 and 10 years. Revenue per Share growth is at 11.8% and 16.7% per year over the past 5 and 10 years.
I wish that the Liquidity Ratio was a bit higher. The Liquidity Ratio for 2015 was at 1.26 and its 5 year median value is 1.51. Other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.50, 19.46 and 23.42. The 9 year values are a bit lower at 14.51, 17.46 and 22.34. The current P/E Ratio is 18.36 based on a stock price of $40.76 and 2016 EPS estimate of $2.22. This stock price testing suggests that the stock price is reasonable and probably around the median.
I get a Graham Price of $37.67. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 1.08 and 1.31. The current P/GP Ratio is 1.08 based on a stock price of $40.76. This stock price testing suggests that the stock price is reasonable and probably around the median.
I get a 10 year Price/Book Value per Share Ratio of 1.51. The current P/B Ratio is 1.44 based on a stock price of $40.76 and BVPS of 28.27. The current ratio is some 4.2% lower than the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median. On an absolute basis, a P/B Ratio at 1.50 or lower is a good ratio for buying a stock.
Because this stock used to be an income trust, dividend yield testing is not a good idea. However, P/S Ratio and P/CF Ratio testing can be done. The 10 year P/S Ratio using Net Revenue is 1.09. The current P/S Ratio is 0.82 based on Net Revenue of $4,943M, Net Revenue per Share of $49.56 and a stock price of $40.76. The current ratio is some 24% lower than the 10 year median ratio.
The 10 year Price/Cash Flow per Share Ratio is 10.40. The current P/CF Ratio is 33.69 a value some 224% higher. Analysts seem to give a CFPS for 2016 that drops some 41%. If you compare the 12 month period to the end of 2015 and the 12 month period to the end of the first quarter, Cash Flow is up by 86%. So again, I wonder about the CFPS estimate for 2016.
There is a review of this company by The Dividend Guy on Seeking Alpha. I guess you have to be careful of what you read because he says that the cut their dividends in 2012, which is untrue. I have the stock and my dividends were not cut. The dividend yield never reached a low as 4.33% in 2013 and I do not know where he got the Dividend Payout Ratio of 60%. . Reading this report, I wondered at times if he was talking about WSP Global.
The thing with the dividends on YCharts is that I am not sure what they are showing. The yield has been dropping since 2012. He is correct that they did merge with Parsons Brinckerhoff. Also, this company used to be called Genivar and as that company they did have problems with inappropriate behavior in Quebec. See an article in the Financial Post.
Doug Watt of Motley Fool likes this company. See what analysts on Stock Chase think of this stock.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here and here.
Yesterday on my other blog I wrote about Update Notes for May 2016... learn more. The next stock I will write about will be Progressive Waste Solutions Ltd. (TSX-BIN, NYSE-BIN)... learn more on Friday, May 13, 2016 around 5 pm.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. WSP now has global coverage. Its web site is here WSP Global Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of WSP Global Inc. (TSX-WSP, OTC- WSPOF). In September 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont and I bought more Genivar, now called WSP Global. I am considering replacing Progressive Waste Solutions (TSX-BIN, NYSE-BIN). So, I am looking at MacDonald, Dettwiler & Associates which is Tech as I have little in Tech and this stock which is an industrial as is Progressive Waste.
This company started out in 2006 as an income trust. It at first raised its dividends between 2006 and 2009, but afterwards kept the dividends flat. They could not really afford the dividend being paid as Dividend Payout Ratio for EPS was higher than 100% from 2012 to 2014.
I have done well on this stock, but then I have done well on all my stocks that converted from Income Trust to corporations. I have had this stock since 2011 or 4.6 years. My total return is 19.29%^ with 13.62% from capital gains and 5.67% from dividends. This unlikely to be repeated as dividend rates are lower and the lowering of dividend yields caused the stock price to go up. It was thought that dividend yields on income trusts that changed to corporations would be around 4 to 5%. This stock has a current yield of 3.68% based on dividends of $1.50 and a stock price of $40.76. Then again the dividend yield on this stock did not get as high as the dividend yield on other income trust stocks.
Some analysts feel that dividends will be cut. The company does not say this and DPR for EPS for 2015 was 73% and the DPR for CFPS for 2015 was 42%. The DPR for EPS for 2016 is expected to be 67% and the DPR for CFPS is expected to be 123%. The analyst's values for EPS/CF Ratio for 2016 would be 1.83. However, the 10 year median value for this ratio is 0.47 and the highest it has ever been is 0.70. So I have to wonder about the analysts' values for 2016 for CFPS.
The outstanding shares are increasing a lot. The 5 and 10 year growth in outstanding shares is 40.5% and 29.1% per year. There is nothing inherently wrong with increasing shares, but it does mean that I as a shareholder am much more interested in per share values to judge growth. Growth is non-existent to good.
The worse growth is in CFPS and the 5 and 8 year growth is at a negative 4.6% and a positive 1.6%. Cash Flow growth over the past 5 and 10 years is at 34% and 31.2% per year. The best growth is in Revenue and it has grown at 59.9% and 46.9% per year over the past 5 and 10 years. Revenue per Share growth is at 11.8% and 16.7% per year over the past 5 and 10 years.
I wish that the Liquidity Ratio was a bit higher. The Liquidity Ratio for 2015 was at 1.26 and its 5 year median value is 1.51. Other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.50, 19.46 and 23.42. The 9 year values are a bit lower at 14.51, 17.46 and 22.34. The current P/E Ratio is 18.36 based on a stock price of $40.76 and 2016 EPS estimate of $2.22. This stock price testing suggests that the stock price is reasonable and probably around the median.
I get a Graham Price of $37.67. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 1.08 and 1.31. The current P/GP Ratio is 1.08 based on a stock price of $40.76. This stock price testing suggests that the stock price is reasonable and probably around the median.
I get a 10 year Price/Book Value per Share Ratio of 1.51. The current P/B Ratio is 1.44 based on a stock price of $40.76 and BVPS of 28.27. The current ratio is some 4.2% lower than the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median. On an absolute basis, a P/B Ratio at 1.50 or lower is a good ratio for buying a stock.
Because this stock used to be an income trust, dividend yield testing is not a good idea. However, P/S Ratio and P/CF Ratio testing can be done. The 10 year P/S Ratio using Net Revenue is 1.09. The current P/S Ratio is 0.82 based on Net Revenue of $4,943M, Net Revenue per Share of $49.56 and a stock price of $40.76. The current ratio is some 24% lower than the 10 year median ratio.
The 10 year Price/Cash Flow per Share Ratio is 10.40. The current P/CF Ratio is 33.69 a value some 224% higher. Analysts seem to give a CFPS for 2016 that drops some 41%. If you compare the 12 month period to the end of 2015 and the 12 month period to the end of the first quarter, Cash Flow is up by 86%. So again, I wonder about the CFPS estimate for 2016.
There is a review of this company by The Dividend Guy on Seeking Alpha. I guess you have to be careful of what you read because he says that the cut their dividends in 2012, which is untrue. I have the stock and my dividends were not cut. The dividend yield never reached a low as 4.33% in 2013 and I do not know where he got the Dividend Payout Ratio of 60%. . Reading this report, I wondered at times if he was talking about WSP Global.
The thing with the dividends on YCharts is that I am not sure what they are showing. The yield has been dropping since 2012. He is correct that they did merge with Parsons Brinckerhoff. Also, this company used to be called Genivar and as that company they did have problems with inappropriate behavior in Quebec. See an article in the Financial Post.
Doug Watt of Motley Fool likes this company. See what analysts on Stock Chase think of this stock.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see that report here and here.
Yesterday on my other blog I wrote about Update Notes for May 2016... learn more. The next stock I will write about will be Progressive Waste Solutions Ltd. (TSX-BIN, NYSE-BIN)... learn more on Friday, May 13, 2016 around 5 pm.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. WSP now has global coverage. Its web site is here WSP Global Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, May 9, 2016
MacDonald, Dettwiler & Associates
Sound bite for Twitter and StockTwits is: Maybe cheap to reasonable. I see problems like the debt ratios are not very good and would give them vulnerability in bad times. Also, insider selling does not look great. Net Insider Selling for 2015 and 2014 was at 0.22% and 0.23% of market cap. For the stocks I cover the NIS median is 0.02% and 75% of the stocks I cover have NIS at 0.11% or lower. See my spreadsheet on MacDonald, Dettwiler & Associates.
I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends. I am considering replacing Progressive Waste Solutions (TSX-BIN, NYSE-BIN). So, I am looking at this stock which is Tech as I have little in Tech and WSP Global Inc. which is an industrial as is Progressive Waste.
This stock just started to pay dividends in 2012. There has been only one dividend increase and that was in 2015 when the dividends were increased by 13.8%. Analysts that follow this stock do not seem to think there will be another increase until at least 2018. So we really do not know if this stock will progress into a dividend growth stock or not.
Because of the one dividend increase dividend growth is just 4.4% per year over the past 3 years. This is a rather low rate. Also dividend yields are rather low. The current yield is 1.7% based on dividends of $1.48 and a stock price of $89.10. The median dividend yield so far is 1.78%.
It would seem that the company can afford their dividends. The Dividend Payout Ratio for EPS for 2015 is 38.5% and 16% for CFPS. The DPR for EPS for 2016 is expected to be around 30% and for CFPS is expected to be around 18%. However, I note that in 2014 the DPR for EPS was 99%.
The Liquidity Ratio for 2015 was 0.98 and its 5 year median value is 0.79. If you add in cash flow after dividends it becomes 1.05 and has a 5 year median value of 0.87. The problem with low Liquidity Ratios is that it makes the company vulnerable in bad times. I prefer this ratio to be 1.50. When the Liquidity Ratio is below 1.00, it means that current assets cannot cover current liabilities.
The Debt Ratio is also low, but not below 1.00. The Ratio for 2015 is 1.44 and the 5 year median value is 1.44. For safety's sake I prefer this ratio also to be at least 1.50. The Leverage and Debt/Equity Ratios are not particular good either at 3.26 and 2.26.
The Return on Equity has been lower than 10% once in the past 5 years and 3 times in the past 10 years. However, the 5 year median ROE has been above 10% over the past 10 years.
There has been good growth in Revenue, Earnings and Cash Flow. However, the outstanding shares have been decreasing by 2.5% and 1% per year over the past 5 and 10 years because of buy backs. So when looking at growth you should focus on Revenue, Net Income and Cash Flow and not per share values to really see the growth for this company. For example, the Revenue growth is 25.2% and 9.8% per year and the Revenue per Share growth is 28.3% and 10.9% per year over the past 5 and 10 years. In both cases, the growth is good.
The 5 year median Price/Earnings per Share Ratios are 18.77, 22.50 and 26.10. The corresponding 10 years ratios are 18.21, 22.41 and 26.13. The corresponding historical ratios are 18.25, 22.41 and 26.13. They are fairly consistent. The current P/E Ratio is 18.33 based on a stock price of $89.10 and 2016 EPS estimate of $4.86. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The EPS estimate for 2016 is an increase of over last year of 27%. The first quarterly report is in and EPS have gone up but by only 1%.
I get a Graham Price of $56.84. The 10 years low, median and high median Price/Graham Price Ratios are 1.61, 1.95 and 2.32. The current P/GP Ratio is 1.58. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 3.83. The current P/GP Ratio is 3.06 a value some 10% lower. This stock price testing suggests that the stock price is relatively cheap.
The current Dividend Yield is 1.66%. The median Dividend Yield for this stock is 1.78% a value some 6.8% higher. This stock price testing suggests that the stock price is relatively reasonable but slightly above the median. Probably not a good test because there are so few years to test.
The 10 year P/S Ratio is 1.52 and the current P/S Ratio is 1.45 based on Revenue estimate for 2016 of $2233M and a stock price of $89.10. With some 36.25M shares outstanding, the Revenue per Share is $61.60. The current P/S Ratio is some 4.8% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Cash Flow per Share Ratio is 17.31. The current P/CF Ratio is 12.75 a value some 26% lower. This current P/CF Ratio is based on 2016 estimate of CFPS of $6.99 and a stock price of $89.10. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. There are more Holds than Buys, so the consensus recommendation is a Hold. The 12 months stock price consensus is $95.22. This implies a total return of 8.53% with 6.87% from capital gains and 1.66% from dividends.
In an interview, the current CEO says why he is leaving the company. He is not a US citizen. Doyle Publishing Ltd. on Seeking Alpha says to avoid this company. First because growth in revenue is not matched with growth in earnings, price is too high and it has lots of long term debt. My quibble with this analysis is that earnings tend to fluctuate and last year was not a good year for earnings. One bad earnings year does not get you to revenue and earnings growth not matching. There is an interesting and again negative view of this company at Vuru. They think stock is overvalued by $39.97 or 55.14%. Joseph Solitro of Motley Fool likes the price of this stock and feels that recent CFPS increases will allow it to raise the dividends in 2016.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more . The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more on Wednesday, May 11, 2016 around 5 pm.
MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends. I am considering replacing Progressive Waste Solutions (TSX-BIN, NYSE-BIN). So, I am looking at this stock which is Tech as I have little in Tech and WSP Global Inc. which is an industrial as is Progressive Waste.
This stock just started to pay dividends in 2012. There has been only one dividend increase and that was in 2015 when the dividends were increased by 13.8%. Analysts that follow this stock do not seem to think there will be another increase until at least 2018. So we really do not know if this stock will progress into a dividend growth stock or not.
Because of the one dividend increase dividend growth is just 4.4% per year over the past 3 years. This is a rather low rate. Also dividend yields are rather low. The current yield is 1.7% based on dividends of $1.48 and a stock price of $89.10. The median dividend yield so far is 1.78%.
It would seem that the company can afford their dividends. The Dividend Payout Ratio for EPS for 2015 is 38.5% and 16% for CFPS. The DPR for EPS for 2016 is expected to be around 30% and for CFPS is expected to be around 18%. However, I note that in 2014 the DPR for EPS was 99%.
The Liquidity Ratio for 2015 was 0.98 and its 5 year median value is 0.79. If you add in cash flow after dividends it becomes 1.05 and has a 5 year median value of 0.87. The problem with low Liquidity Ratios is that it makes the company vulnerable in bad times. I prefer this ratio to be 1.50. When the Liquidity Ratio is below 1.00, it means that current assets cannot cover current liabilities.
The Debt Ratio is also low, but not below 1.00. The Ratio for 2015 is 1.44 and the 5 year median value is 1.44. For safety's sake I prefer this ratio also to be at least 1.50. The Leverage and Debt/Equity Ratios are not particular good either at 3.26 and 2.26.
The Return on Equity has been lower than 10% once in the past 5 years and 3 times in the past 10 years. However, the 5 year median ROE has been above 10% over the past 10 years.
There has been good growth in Revenue, Earnings and Cash Flow. However, the outstanding shares have been decreasing by 2.5% and 1% per year over the past 5 and 10 years because of buy backs. So when looking at growth you should focus on Revenue, Net Income and Cash Flow and not per share values to really see the growth for this company. For example, the Revenue growth is 25.2% and 9.8% per year and the Revenue per Share growth is 28.3% and 10.9% per year over the past 5 and 10 years. In both cases, the growth is good.
The 5 year median Price/Earnings per Share Ratios are 18.77, 22.50 and 26.10. The corresponding 10 years ratios are 18.21, 22.41 and 26.13. The corresponding historical ratios are 18.25, 22.41 and 26.13. They are fairly consistent. The current P/E Ratio is 18.33 based on a stock price of $89.10 and 2016 EPS estimate of $4.86. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The EPS estimate for 2016 is an increase of over last year of 27%. The first quarterly report is in and EPS have gone up but by only 1%.
I get a Graham Price of $56.84. The 10 years low, median and high median Price/Graham Price Ratios are 1.61, 1.95 and 2.32. The current P/GP Ratio is 1.58. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 3.83. The current P/GP Ratio is 3.06 a value some 10% lower. This stock price testing suggests that the stock price is relatively cheap.
The current Dividend Yield is 1.66%. The median Dividend Yield for this stock is 1.78% a value some 6.8% higher. This stock price testing suggests that the stock price is relatively reasonable but slightly above the median. Probably not a good test because there are so few years to test.
The 10 year P/S Ratio is 1.52 and the current P/S Ratio is 1.45 based on Revenue estimate for 2016 of $2233M and a stock price of $89.10. With some 36.25M shares outstanding, the Revenue per Share is $61.60. The current P/S Ratio is some 4.8% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Cash Flow per Share Ratio is 17.31. The current P/CF Ratio is 12.75 a value some 26% lower. This current P/CF Ratio is based on 2016 estimate of CFPS of $6.99 and a stock price of $89.10. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. There are more Holds than Buys, so the consensus recommendation is a Hold. The 12 months stock price consensus is $95.22. This implies a total return of 8.53% with 6.87% from capital gains and 1.66% from dividends.
In an interview, the current CEO says why he is leaving the company. He is not a US citizen. Doyle Publishing Ltd. on Seeking Alpha says to avoid this company. First because growth in revenue is not matched with growth in earnings, price is too high and it has lots of long term debt. My quibble with this analysis is that earnings tend to fluctuate and last year was not a good year for earnings. One bad earnings year does not get you to revenue and earnings growth not matching. There is an interesting and again negative view of this company at Vuru. They think stock is overvalued by $39.97 or 55.14%. Joseph Solitro of Motley Fool likes the price of this stock and feels that recent CFPS increases will allow it to raise the dividends in 2016.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more . The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more on Wednesday, May 11, 2016 around 5 pm.
MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Friday, May 6, 2016
Thomson Reuters Corp.
Sound bite for Twitter and StockTwits is: Price probably reasonable. The stock price is only showing as reasonable using the dividend yield. However, using this test you are using current data not estimates. See my spreadsheet on Thomson Reuters Corp.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, just over 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre. So it is not one of my most brilliant long term buys.
As a Canadian I have done well with increases to dividends over the past 5 and 10 years. My dividends have gone up by 8.1% and 6.2% per year over these time periods. The dividend yield is good also, currently at 3.3% and the historical median dividend yield at 3.1%. The current dividend yield is based on dividends of $1.71 and a stock price of $51.72.
However, dividends are paid in US$. The US$ has gone up in regards to the CDN$ currency by 1.76% and 6.84% per year over the past 5 and 10 years. The dividends in US$ have only increased by 2.9% and 5.4% per year over the past 5 and 10 years. However, the dividend yield is very similar to the CDN$ dividend yield with the current yield at 3.3% and an historical median dividend yield at3.2%. The current dividend yield is based on dividends of $1.36 and a stock price of $41.26.
The Liquidity Ratio is low on this company and it has always been. The Liquidity Ratio for 2015 is 0.66 and has a 5 year median of 0.82. If you add in cash flow after dividends, the ratio is 0.99 with a 5 year median of 1.08. This gives this company vulnerability in bad times.
The Return on Equity is also rather low. It has only been at or above 10% three times in the last 5 years and 5 times in the last 10 years. I have had this stock for just over 30 years. My total return is 7.72% per year with 4.41% from capital gains and 3.31% from dividends. My stock cost me $13.91 and I have received $28.26 in dividends or 203% of the cost of my stock. My expectations are some 8% of total return per year and this stock is not that far off. It is just in comparison my utility stock has done much better.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year P/E Ratios are 20.41, 18.82 and 21.18. The corresponding historical P/E Ratios are 20.22, 22.63 and 25.25. It is interesting that P/E Ratios have been coming down on this stock. The current P/E Ratio is 30.09 based on a stock price of $51.72 and 2016 EPS estimate of $1.72 CDN$ ($1.37 US$). This stock price testing suggests that the stock is relatively expensive.
I get a Graham Price of $29.39 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.43 and 1.60. I get a current P/GP Ratio of 1.75 based on a stock price of $51.72. This stock price testing suggests that the stock is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.38 based on BVPS of $20.08 CDN$ and a stock price of $51.72. The current P/B Ratio is some 53% above the 10 year ratio. This stock price testing suggests that the stock is relatively expensive.
The only testing that suggests that the price might be reasonable is if we look at dividend yields. The current dividend yield is 3.3% based on dividends of $1.71 CDN$ and a stock price of $51.72. You can the same dividend yield of 3.3% with US$ with dividends at $1.36 US$ and a stock price of $41.26 US$. The historical median dividend yield is 3.12% and the current dividend yield is some 5.8% higher. This stock price testing suggests that the stock price is reasonable and below the median.
If I use US$ in these tests I get similar results.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $41.81 US$. This implies a total return of 4.63% with 1.33% from capital gains and 3.30% from dividends and based on a stock price of $41.26US$.
Joseph Solitro of Motley Fool thinks this company is a good buy. Stock price was similar then as it is now. Todd Miller of The Post talks about recent analysts ratings on this stock. There is an interesting article by The Investment Doctor in Seeking Alpha about the aggressive Thomson Reuters buyback.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
Yesterday on my other blog I wrote about Something to Buy May 2016... learn more . The next stock I will write about will be MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more on Monday, May 9, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Geography of Genius by Eric Weiner learn more...
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Thomson and Reuters amalgamated in 2008. Its web site is here Thomson Reuters Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, just over 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre. So it is not one of my most brilliant long term buys.
As a Canadian I have done well with increases to dividends over the past 5 and 10 years. My dividends have gone up by 8.1% and 6.2% per year over these time periods. The dividend yield is good also, currently at 3.3% and the historical median dividend yield at 3.1%. The current dividend yield is based on dividends of $1.71 and a stock price of $51.72.
However, dividends are paid in US$. The US$ has gone up in regards to the CDN$ currency by 1.76% and 6.84% per year over the past 5 and 10 years. The dividends in US$ have only increased by 2.9% and 5.4% per year over the past 5 and 10 years. However, the dividend yield is very similar to the CDN$ dividend yield with the current yield at 3.3% and an historical median dividend yield at3.2%. The current dividend yield is based on dividends of $1.36 and a stock price of $41.26.
The Liquidity Ratio is low on this company and it has always been. The Liquidity Ratio for 2015 is 0.66 and has a 5 year median of 0.82. If you add in cash flow after dividends, the ratio is 0.99 with a 5 year median of 1.08. This gives this company vulnerability in bad times.
The Return on Equity is also rather low. It has only been at or above 10% three times in the last 5 years and 5 times in the last 10 years. I have had this stock for just over 30 years. My total return is 7.72% per year with 4.41% from capital gains and 3.31% from dividends. My stock cost me $13.91 and I have received $28.26 in dividends or 203% of the cost of my stock. My expectations are some 8% of total return per year and this stock is not that far off. It is just in comparison my utility stock has done much better.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year P/E Ratios are 20.41, 18.82 and 21.18. The corresponding historical P/E Ratios are 20.22, 22.63 and 25.25. It is interesting that P/E Ratios have been coming down on this stock. The current P/E Ratio is 30.09 based on a stock price of $51.72 and 2016 EPS estimate of $1.72 CDN$ ($1.37 US$). This stock price testing suggests that the stock is relatively expensive.
I get a Graham Price of $29.39 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.43 and 1.60. I get a current P/GP Ratio of 1.75 based on a stock price of $51.72. This stock price testing suggests that the stock is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.38 based on BVPS of $20.08 CDN$ and a stock price of $51.72. The current P/B Ratio is some 53% above the 10 year ratio. This stock price testing suggests that the stock is relatively expensive.
The only testing that suggests that the price might be reasonable is if we look at dividend yields. The current dividend yield is 3.3% based on dividends of $1.71 CDN$ and a stock price of $51.72. You can the same dividend yield of 3.3% with US$ with dividends at $1.36 US$ and a stock price of $41.26 US$. The historical median dividend yield is 3.12% and the current dividend yield is some 5.8% higher. This stock price testing suggests that the stock price is reasonable and below the median.
If I use US$ in these tests I get similar results.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $41.81 US$. This implies a total return of 4.63% with 1.33% from capital gains and 3.30% from dividends and based on a stock price of $41.26US$.
Joseph Solitro of Motley Fool thinks this company is a good buy. Stock price was similar then as it is now. Todd Miller of The Post talks about recent analysts ratings on this stock. There is an interesting article by The Investment Doctor in Seeking Alpha about the aggressive Thomson Reuters buyback.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
Yesterday on my other blog I wrote about Something to Buy May 2016... learn more . The next stock I will write about will be MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more on Monday, May 9, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Geography of Genius by Eric Weiner learn more...
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Thomson and Reuters amalgamated in 2008. Its web site is here Thomson Reuters Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, May 4, 2016
Power Financial Corp.
Sound bite for Twitter and StockTwits is: Price is probably cheap. Life insurance companies are still having difficulties with very low interest rates. I expect that when rates pick up they will do better, but who knows when that will happen. This sort of economic situations can go on for longer than you ever expect. See my spreadsheet on Power Financial Corp.
I own this stock of Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.
This has been a dividend growth stock, but as with all insurance companies, they had a period lately when no dividend increases were made. This stock had a long one from 2010 to 2014. In 2015 they increased the dividends by 6.2%. The dividends increased again in 2016 by 5.4%.
Historically the dividend increases where higher. For example, between 1993 and 2008 the median increase was 18.5%. Currently life insurance companies are having a hard time with very low interest rates. However, since dividend increases has decrease, the dividend yield has gone up. When I bought my stock in 2001 and 2004, the dividend yields were 2.57% and 2.53% respectively. Now the dividend yield is 4.76%. This is based on dividends of $1.57 and a stock price of $32.99.
The stock I bought in 2001, some 14 years ago, is earning a dividend yield of 8.28% on my original purchase price. My dividend growth is 8.7% per year. If you bought this stock today with a dividend yield of 4.76% and growth of 5% per year, then in 14 years' time you could be earning a dividend yield of 9.42% on your original purchase price ($32.99).
My total return on this stock is mediocre, but I do expect to do better in the future. My total return is 7.63% with 3.21% from capital gains and 4.42% from dividends. I have received some $13.39 in dividends with a cost of $23.23, so my dividends have covered 57.6% of the cost of my stock.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.25, 11.50 and 13.16. The corresponding 10 year ratios are 10.37, 11.99 and 13.55. The corresponding historical ratios are 10.05, 12.05 and 14.97. The current P/E Ratio is 10.18 based on a stock price of $32.99 and 2016 EPS estimate of $3.24. This stock price testing suggests that the stock price is probably relatively cheap.
I get a Graham Price of $41.65. The 10 year Price/Graham Price Ratios are 0.82, 0.95 and 1.14. The current ratio is 0.79 based on a stock price of $32.99. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year Price/Book Value per Share Ratio of 1.70. The current P/B Ratio is 1.39 based on BVPS of $23.79 and a stock price of $32.99. The current P/B Ratio is some 18.6% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. On an absolute basis, a P/B Ratio of 1.50 or lower shows a cheap stock price.
The historical dividend yield is 3.18% and the current dividend yield of 4.76% is some 49.7% lower. This stock price testing suggests that the stock price is probably relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold, but the consensus recommendation would be a Buy. The 1`2 month stock price is $36.29. This implies a total return of $14.765 with 10.00% from capital gains and 4.76% from dividends.
Nelson Smith of Motley Fool gives 3 reasons to buy this stock. This article by Andy Holloway in the Financial Post talks about this company investing in FinTech. See what analysts are saying about this stock on Stock Chase.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here..
Yesterday on my other blog I wrote about Dividend Stocks May 2016... learn more . The next stock I will write about will be Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more on Friday, May 6, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Autistic Brain by Temple Grandin learn more...
This company is a holding and management company. Its operations provide a range of individual and corporate financial and fiduciary services in North America and Europe. It holds interest in the following companies: Great-West Lifeco, Great-West Life, London Life, Canada Life, Great-West Life & Annuity, Putnam Investments, IGM Financial, Investors Group Mackenzie Financial, and Pargesa Group. Its web site is here Power Financial Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.
This has been a dividend growth stock, but as with all insurance companies, they had a period lately when no dividend increases were made. This stock had a long one from 2010 to 2014. In 2015 they increased the dividends by 6.2%. The dividends increased again in 2016 by 5.4%.
Historically the dividend increases where higher. For example, between 1993 and 2008 the median increase was 18.5%. Currently life insurance companies are having a hard time with very low interest rates. However, since dividend increases has decrease, the dividend yield has gone up. When I bought my stock in 2001 and 2004, the dividend yields were 2.57% and 2.53% respectively. Now the dividend yield is 4.76%. This is based on dividends of $1.57 and a stock price of $32.99.
The stock I bought in 2001, some 14 years ago, is earning a dividend yield of 8.28% on my original purchase price. My dividend growth is 8.7% per year. If you bought this stock today with a dividend yield of 4.76% and growth of 5% per year, then in 14 years' time you could be earning a dividend yield of 9.42% on your original purchase price ($32.99).
My total return on this stock is mediocre, but I do expect to do better in the future. My total return is 7.63% with 3.21% from capital gains and 4.42% from dividends. I have received some $13.39 in dividends with a cost of $23.23, so my dividends have covered 57.6% of the cost of my stock.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.25, 11.50 and 13.16. The corresponding 10 year ratios are 10.37, 11.99 and 13.55. The corresponding historical ratios are 10.05, 12.05 and 14.97. The current P/E Ratio is 10.18 based on a stock price of $32.99 and 2016 EPS estimate of $3.24. This stock price testing suggests that the stock price is probably relatively cheap.
I get a Graham Price of $41.65. The 10 year Price/Graham Price Ratios are 0.82, 0.95 and 1.14. The current ratio is 0.79 based on a stock price of $32.99. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year Price/Book Value per Share Ratio of 1.70. The current P/B Ratio is 1.39 based on BVPS of $23.79 and a stock price of $32.99. The current P/B Ratio is some 18.6% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. On an absolute basis, a P/B Ratio of 1.50 or lower shows a cheap stock price.
The historical dividend yield is 3.18% and the current dividend yield of 4.76% is some 49.7% lower. This stock price testing suggests that the stock price is probably relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold, but the consensus recommendation would be a Buy. The 1`2 month stock price is $36.29. This implies a total return of $14.765 with 10.00% from capital gains and 4.76% from dividends.
Nelson Smith of Motley Fool gives 3 reasons to buy this stock. This article by Andy Holloway in the Financial Post talks about this company investing in FinTech. See what analysts are saying about this stock on Stock Chase.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here..
Yesterday on my other blog I wrote about Dividend Stocks May 2016... learn more . The next stock I will write about will be Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more on Friday, May 6, 2016 around 5 pm.
Also, on my book blog I have put a review of the book The Autistic Brain by Temple Grandin learn more...
This company is a holding and management company. Its operations provide a range of individual and corporate financial and fiduciary services in North America and Europe. It holds interest in the following companies: Great-West Lifeco, Great-West Life, London Life, Canada Life, Great-West Life & Annuity, Putnam Investments, IGM Financial, Investors Group Mackenzie Financial, and Pargesa Group. Its web site is here Power Financial Corp.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, May 2, 2016
Fortis Inc.
Sound bite for Twitter and StockTwits is: Price reasonable, below median. My analysis shows that the stock price is reasonable and mostly below the median. That points to a good time to buy. It is nice to buy stocks cheap, but this seldom happens for good stocks. The only test that says the price might be high is the P/E Ratio test and this test can be unreliable. See my spreadsheet on Fortis Inc.
I own this stock of Fortis Inc. (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.
How have I done? My total return is 12.98% per year with 7.95% per year from capital gains and 5.03% per year from dividends. I have received dividends of $19.86 per share and my share cost is $6.81. That means that my dividends have paid 292% of my share cost.
For my original stock purchase in 1987made about 28 years ago, I am making a dividend yield of 32.26%. The dividends have gone up by 5.33% per year. For my 1995 purchase made about 20 years ago, I am making a dividend yield of 21.87%. The dividends have gone up by 6.40% per year. This is the reason you buy dividend growth stocks for future income.
Dividend yield on this stock is moderate to good. The current dividend yield is 3.71% based on a stock price of $40.47 and dividends of $1.50. The 5 year median dividend is 3.33% and the historical median is 3.64%. Dividend growth is low to moderate. The 5 and 10 year dividend growth is at 4.49% and 9.02%.
I think that they can afford their dividends. The Dividend Payout Ratio for EPS was 54% in 2015. The 5 year median DPR for EPS is higher at 72%. It is expected to be around 70% in 2016. The DPR for CFPS was 24% in 2015 and the 5 year median is 27%. It is expected to be around 28% in 2016.
The Liquidity Ratio is low. For 2015 it was 0.70. This means that the current assets cannot cover the current liabilities. However, if you add in cash flow after dividends the ratio becomes 1.19. This gives the company some vulnerability in bad times. Other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.20, 18.72 and 20.24. The corresponding 10 year ratios are 16.32, 18.48 and 20.50. The corresponding historical ratios are 13.23, 15.50 and 17.72. The current P/E Ratio is 18.74 based on a stock price of $40.47 and 2016 EPS estimate of $2.16. The current stock price looks relatively reasonable and around the median.
I get a Graham Price of $37.30. The 10 year low, median and high median Price/Graham Price Ratios are 1.04, 1.16 and 1.26. The current P/GP Ratio is 1.09 based on a stock price of $40.47. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year Price/Book Value per Share Ratio is 1.51 and the current P/B Ratio is some 6.6% lower at 1.41. The current P/B Ratio is based on BVPS of $28.63 and a stock price of $40.47. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The current dividend yield is 3.71%. The historical median dividend yield is 3.64% a value some 1.8% lower. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month consensus stock price if $45.71. This implies a total return of 16.65% with 12.95% from capital gains and 3.71% from dividends. This is a good return for a utility.
Kay Ng of Motley Fool thinks that this stock is good if you want safe and growing dividend income. Nelson Smith of Motley looks at new technology and this company. See what some analysts are saying about this stock on Stock Chase.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more . The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Wednesday, May 4, 2016 around 5 pm.
Fortis is a diversified, international distribution utility holding company. Its regulated holdings include electric distribution utilities in five Canadian provinces and three Caribbean countries and a natural gas utility in British Columbia. Fortis owns and operates non-regulated generation assets across Canada and in Belize and Upper New York State. It also owns hotels and commercial office and retail space primarily in Atlantic Canada. Its web site is here Fortis Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Fortis Inc. (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.
How have I done? My total return is 12.98% per year with 7.95% per year from capital gains and 5.03% per year from dividends. I have received dividends of $19.86 per share and my share cost is $6.81. That means that my dividends have paid 292% of my share cost.
For my original stock purchase in 1987made about 28 years ago, I am making a dividend yield of 32.26%. The dividends have gone up by 5.33% per year. For my 1995 purchase made about 20 years ago, I am making a dividend yield of 21.87%. The dividends have gone up by 6.40% per year. This is the reason you buy dividend growth stocks for future income.
Dividend yield on this stock is moderate to good. The current dividend yield is 3.71% based on a stock price of $40.47 and dividends of $1.50. The 5 year median dividend is 3.33% and the historical median is 3.64%. Dividend growth is low to moderate. The 5 and 10 year dividend growth is at 4.49% and 9.02%.
I think that they can afford their dividends. The Dividend Payout Ratio for EPS was 54% in 2015. The 5 year median DPR for EPS is higher at 72%. It is expected to be around 70% in 2016. The DPR for CFPS was 24% in 2015 and the 5 year median is 27%. It is expected to be around 28% in 2016.
The Liquidity Ratio is low. For 2015 it was 0.70. This means that the current assets cannot cover the current liabilities. However, if you add in cash flow after dividends the ratio becomes 1.19. This gives the company some vulnerability in bad times. Other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.20, 18.72 and 20.24. The corresponding 10 year ratios are 16.32, 18.48 and 20.50. The corresponding historical ratios are 13.23, 15.50 and 17.72. The current P/E Ratio is 18.74 based on a stock price of $40.47 and 2016 EPS estimate of $2.16. The current stock price looks relatively reasonable and around the median.
I get a Graham Price of $37.30. The 10 year low, median and high median Price/Graham Price Ratios are 1.04, 1.16 and 1.26. The current P/GP Ratio is 1.09 based on a stock price of $40.47. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year Price/Book Value per Share Ratio is 1.51 and the current P/B Ratio is some 6.6% lower at 1.41. The current P/B Ratio is based on BVPS of $28.63 and a stock price of $40.47. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The current dividend yield is 3.71%. The historical median dividend yield is 3.64% a value some 1.8% lower. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month consensus stock price if $45.71. This implies a total return of 16.65% with 12.95% from capital gains and 3.71% from dividends. This is a good return for a utility.
Kay Ng of Motley Fool thinks that this stock is good if you want safe and growing dividend income. Nelson Smith of Motley looks at new technology and this company. See what some analysts are saying about this stock on Stock Chase.
I will have only one entry for this stock this year. However, I did a more complete report on this company in 2015 and you can see those reports here and here.
The last stock I wrote about was about was SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more . The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Wednesday, May 4, 2016 around 5 pm.
Fortis is a diversified, international distribution utility holding company. Its regulated holdings include electric distribution utilities in five Canadian provinces and three Caribbean countries and a natural gas utility in British Columbia. Fortis owns and operates non-regulated generation assets across Canada and in Belize and Upper New York State. It also owns hotels and commercial office and retail space primarily in Atlantic Canada. Its web site is here Fortis Inc.
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.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
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