Monday, July 31, 2017

Pulse Seismic Inc.

Sound bite for Twitter and StockTwits is: Small Cap stock. It is hard to get a fix on the price, but it does seem a bit high. It would seem that investors expect that it is recovering. The stock is classified as industrial, but it is also a technology firm. It is risky, but could also do well in the longer term for shareholders. See my spreadsheet on Pulse Seismic Inc.

I do not own this stock of Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I went to the Globe and Mail site of G&M and from Globe Investor section I selected the Stock Filter. I asked for companies that were priced between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.

Dividends have been paid on and off since 2003 some 14 years ago. They suspend dividends when they are not earning enough to cover them. This is probably prudent on their part. They might be a good stock for building a portfolio, but if you are living off your dividends, it may be of too high risk.

One good thing about this stock is their very good debt ratios. They have no long term debt so Long Term Debt/Market Cap Ratio is 0. The Liquidity Ratio and the Debt Ratios are 8.93 and 7.12 respectively where good ratios are 1.50 and above. Leverage and Debt/Equity Ratios for 2016 are 1.16 and 0.16. These are also very good ratios. This means that the stock can get through bad times and since they service the oil and gas industry, this can only be a very good thing.

I really cannot get a Price/Earnings Ratio fix on this stock. There are too many earnings losses to make anything meaningful from past P/E Ratios. The current P/E Ratio is 256.00 because the EPS is expected to be just $0.01 for 2017. The P/E Ratio for 2018 is 15.06. This is based on the current stock price $2.56 and 2018 EPS of $0.17. This would be a reasonable P/E Ratio. It is neither very high nor very low.

I get a current Graham Price of $0.36 and a Graham Price of $1.50 for 2018. The 10 year low, median and high median P/GP Ratios are 1.97, 2.50 and 2.94. The current Price/Graham Price Ratio is 7.06 and this is much too high. The Graham price for 2018 is 1.71. The P/GP Ratio for 2018 is in absolute terms rather high but compared to P/GP Ratios for this stock is says that the stock is relatively cheap.

I get a 10 year Price/Book Value per Share of $1.81. The current P/B Ratio is 4.38 a values some 141% above the 10 year median P/B Ratio. The problem is that the BVPS has been declining by 11% per year over the past 5 years. The P/B Ratio of 4.38 is based on BV of $32.3M and BVPS of $0.58. This stock price testing suggests that the stock price is relatively high.

The 10 year median Price/Sales (or Revenue) Ratio is 3.17. The current P/S Ratio is 7.46 based on 2017 Revenue estimate of $19M, Revenue per Share of 0.34 and a stock price of $2.56. The current ratio is some 135% higher than the 10 year median and this suggests that the stock price is relatively high. The main problem is the Revenue has been declining since 2012.

When I look at analysts' recommendations, I find only one analysts and he gives this stock a Hold recommendation. The 12 month stock price is $2.85. This implies a total return of 11.33% all from capital gains as dividends have been suspended.

On Stock House there is a Press Release from this company about their second quarterly report. It starts with highlights of the second quarter. An Aiken Contributor on Aiken Advocate gives some technical analysis, but this does not help too much in understand this stock. Rover Staff on The Stock Rover shows that the trend for this stock is relatively weak.

Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse's 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is here Pulse Seismic Inc.

The last stock I wrote about was about was Dorel Industries Inc. (TSX-DII.B, OTC-DIIBF)... learn more. The next stock I will write about will be TECSYS Inc. (TSX-TCS, OTC-TCYSF)... learn more on Wednesday, August 2, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks August 2017... learn more on August 1, 2017 around 5 pm.

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.

No comments:

Post a Comment