Monday, May 8, 2017

McCoy Global Inc.

Sound bite for Twitter and StockTwits is: Small cap industrial. I will continue to hold on to my shares and probably buy some more when I have more dividend income in my TFSA account. I expect it to do well in the long term, but I also expect volatility in dividends. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). This is a small cap stock I bought for TFSA. When I bought it, it was a dividend paying small cap. I decided to try out McCoy. They had just restored their dividend. Because it was rather cheap, 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 stock suspended its dividend again in 2016. I would suspect from its history, that when they can they will probably restore the dividends. When dividends were paid, they were moderate being in the 2% range generally. I did not invest much in the company, but my loss is at 23% per year. The dividends I have received have covered some 8.7% of the cost of my stock.

Analysts seem to think that the company has hit bottom and that it will start to recover this year. However, the company does service the energy business, so who knows what will happen. The company has been around for a while having been started in 1914 and it went public in 1996, so I do not think that it will disappear.

The debt ratios are good for this company. They do not have much debt and the Total Liabilities/Market Cap Ratio is just 0.18. The Liquidity Ratio has always been good with a 5 year median of 3.81 and a current one of 9.48. The Debt Ratio is 6.93. These ratios are quite high and quite good. Leverage and Debt/Equity Ratios are low and also very good at 1.17 and 0.17 respectively. Good debt ratios help companies survive the bad times.

The 5 year low, median and high median Price/Earnings per Share Ratios are 5.23, 8.43 and 10.18. The 10 year values are 5.63, 8.27 and 10.19. The Historical values are 2.23, 8.48 and 10.92. These are quite low values but rather consistent. Unfortunately, the 2017 EPS estimate is expected to be negative, so there is no testing via P/E Ratios currently.

I get a Graham price of $1.71. The 10 year low, median and high median Price/Graham Price Ratios are 0.44, 0.72 and 0.95. The current P/GP Ratio is 1.12 based on a stock price of $1.91. This would indicate a high current stock price. However, last year the Graham Price was $5.62. However, a P/GP Ratio of 1.12 is not a high ratio.

The 10 year Price/Book Value per Share Ratio is 1.24. The current P/B Ratio is $0.88 based on BVPS of $2.16 and a stock price of $1.91. The current ratio is some 28% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. Also a stock is considered cheap when the stock price is below the BVPS. This is probably the best and the only valid stock price test that can be done on this stock at this time.

When I look at analysts' recommendations I find Buy, Strong Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 months stock price consensus is $2.24. This implies a total return of 17.28% with the gain all coming from capital gains.

The CNW Group says on Yahoo Finance that this company will release the first quarterly report for 2017 on May 11, 2017. Don Majors on Sports Perspectives talks about the fact that Zacks Investment Research has forecast that this company will earn $0.04 per share for 2017. This is down from their previous forecast of $0.05 earnings for the 2017. In this Press Release on CNW, the company talks about their acquisition of 3PS Inc.

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.

The last stock I wrote about was about was Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more. The next stock I will write about will be TFI International (TSX -TFII, OTC-TFIFF)... learn more on Wednesday, May 10, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 4... learn more on Tuesday, May 9, 2017 around 5 pm.

Also, on my book blog I have put a review of the book Heroes of Empire by Edward Berenson learn more...

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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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