Brookfield Asset Management Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price is probably cheap to reasonable. Stock price testing is showing the stock price from cheap to expensive. A negative is the lower increase for 2019 in dividends at 6.67% than for the last 5 years at 8.81% per year. The company has a complex structure. See my spreadsheet on Brookfield Asset Management Inc.

I do not own this stock of Brookfield Asset Management Inc (TSX-BAM.A, NYSE-BAM). I used to own an earlier version of this stock as Hees International, then Edper Group and then EdperBrascan back in 1987 to 1999. I bought this stock as Hees International in 1987 and more in 1988, 1989 and 1990. At first dividends were semi-annual and there was some good dividend increases. There was a much lower dividend increase in 1991. Between 1991 and when I sold in 1999 there was no dividend increases. The stock was going nowhere at that time, so I sold. There have been a lot of name changes and amalgamations since I had this stock.

When I was updating my spreadsheet, I noticed that the estimates I got last year showed that Revenue and Earnings would be lower in 2018, but they went higher. The 12 month Revenue and Earnings I got by using the second quarterly results of 2018 showed increasing Revenue and Earnings. For 2017, the 12 month Revenue was $40,786M and Earnings was $1.34. Estimates for 2018 for Revenue was $34,197M and Earnings was $1.50. Revenue came in at $56,771M and earnings at $3.40. The 12 month Revenue was $51,248 and Earnings was $2.65. So, the estimates were way off, but the 12 month values to the end of the second quarter showed the right way.

I have tracked dividends on this stock for some 31 years. They started off good (5% and above), then went to moderate (2 to 5% ranges) and now are low (under 2%). The current dividend is 1.15%, with 5, 10 and historical median dividend yields at 1.46%, 1.61% and 2.01%. These yields are in US$.

Dividend growth has been low (under 8%) to Moderate (8% to 14% ranges) over the years. It has been moderate over the past 5 years at 8.8% per year. The last increase was lower at 6.7% and it was for 2019. You can see from the following charts that increases are higher but yields are lower. The company has been reporting in US$ since 2002, so it is only in the earliest 5 years that the reporting was in CDN$ for these charts.

The Dividend Payout Ratios are good. As the yields have come down and the increases have gone up, the DPR has gone down. The DPR for EPS for 2018 is 18% with 5 year coverage at 22%. The DPR for CFPS for 2018 is 9% with 5 year coverage at 11%.

Debt Ratios are all fine. The Long Term Debt/Market Cap Ratio for 2018 is good at 0.17. The Liquidity Ratio at 1.61 for 2018 is good. The Debt Ratio at 1.61 is good. Leverage and Debt/Equity Ratios at 2.64 and 1.64 are fine.

The Total Return per year is shown below for years of 5 to 31 to the end of 2018 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	14.37%	15.65%	13.74%	1.91%
2008	10	7.00%	18.19%	15.36%	2.83%
2003	15	10.37%	16.53%	13.48%	3.05%
1998	20	5.32%	16.97%	13.43%	3.54%
1993	25	4.23%	16.39%	12.02%	4.36%
1988	30	4.13%	11.15%	8.19%	2.97%
1987	31	4.53%	12.39%	8.83%	3.56%

The Total Return per year is shown below for years of 5 to 31 to the end of 2018 in US$.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	8.81%	9.89%	8.18%	1.71%
2008	10	5.84%	19.13%	15.60%	3.53%
2003	15	9.97%	16.65%	13.10%	3.55%
1998	20	5.97%	18.20%	14.08%	4.12%
1993	25	4.11%	16.28%	11.89%	4.39%
1988	30	3.67%	10.65%	7.70%	2.95%
1987	31	4.37%	12.44%	8.66%	3.78%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.61, 14.02 and 15.44. The corresponding 10 year ratios are 11.70, 12.90 and 14.86. The historical ratios are 11.14, 13.24 and 15.18. The current P/E Ratio is 27.63 based on a stock price of $72.27 and 2019 EPS estimate of $2.63 ($2.03 U$). This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a Graham Price of $76.80. The 10 year low, median, and high median Price/Graham Price Ratios are 0.77, 0.86 and 1.01. The current P/GP Ratio is 0.95 based on a stock price of $73.27. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 0.74 based on a Book Value of $72,324M, Book Value per Share of $75.66 and a stock price of $55.67. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get similar results in CDN$.

I get an historical median dividend yield of 2.01%. The current dividend is 1.15% based on dividends of $0.64 and a stock price of $55.67. The current yield is 42% below the historical ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You get similar results in CDN$.

However, since the long term trend is a lower yield, it is interesting to look at the 10 year median yield which is 1.61%. The current yield at 1.15% is still much lower at 29% lower. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You get similar results in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.13. The current P/S Ratio is 0.88 based on 2019 Revenue estimate of $60.237M, Revenue per Share of $63.02 and a stock price of $55.67. The current P/S Ratio is some 22% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get similar results in CDN$.

Results of stock price testing is that the stock price is probably cheap to reasonable. The best test is the P/S Ratio test and it is showing here as cheap (but just over the line to cheap). The P/B Ratios testing is showing this stock as cheap. A good test generally is the dividend yield test. This is showing the stock price as expensive, but there is a downward trend to a lower yield. However, a negative is that the latest increase, which is for 2019, is lower at 6.67% than the 5 year increase per year at 8.81%.

Is it a good company at a reasonable price? A lot of people like this company and their spin offs. I must say that their set up seems quite complex and I find this a negative. However, they have delivered a fair return to their shareholders over time. The analysts’ recommendation of Strong Buy certainly conflicts with a stock price loss over the next year.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (6) and Hold (1). The consensus would be a Strong Buy. The 12 months stock price is $59.96 ($45.90 US$). This implies a total loss of 17.02% with a capital loss of 18.16% and dividends of 1.14%.

See what analysts are saying on Stock Chase. Some say it is at a record high. Reuben Gregg Brewer on Motley Fool says to buy Brookfield for growth not for its dividend. A writer on Simply Wall Street talks about institutional ownership of this company at 66%. Data on Market Stock Alerts says this stock has a Buy Signal. Kenny Obasanjo on Mitchell Messenger talks about AdvisorNet Financial Inc buying more shares in this company.

Brookfield Asset Management Inc owns and manages commercial property, power, and infrastructure assets. Its investment focus includes Real Estate, Infrastructure, Renewable Power and Private Equity. Located around the world, its assets are concentrated in the United States, Canada, Brazil, and Australia. Its web site is here Brookfield Asset Management Inc.

The last stock I wrote about was about was Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. The next stock I will write about will be CCL Industries Inc (TSX-CCL.B, OTC-CCDBF) ... learn more on Friday, November 1, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – David Rosenberg.... learn more on Thursday, October 31, 2019 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.

Molson Coors Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The positive is a recent big hike in dividends. This shows the management has a positive view of the future. However, I do worry about the debt and also the high ratio of intangible and goodwill assets. See my spreadsheet on Molson Coors Canada.

I do not own this stock of Molson Coors Canada (TSX-TPX.B, NYSE-TAP). In 2008 I did a spreadsheet on this stock as it has recently been recommended and generally, beer companies make good money. Labatt’s was one of the original companies that I purchased and I did very well with it before it was bought out.

When I was updating my spreadsheet, I noticed that they had a very big increase in dividends this year of 39% after 3 years of no increases. This is a positive result. A negative is that the Intangible Assets/Market Cap ratio is high. For 2018 it is 1.06 and at present is 1.07. If you add Goodwill with Intangible Assets you get an Intangible Assets/Market Cap Ratio of 1.70. This is not good.

Dividends are paid in US$ and this means for Canadian investors, the dividends will fluctuate with changes in currency exchange rates. The dividend yield for this stock is in the moderate range (2% to 4% ranges). In CDN$, the current dividend yield is 4.00%, with 5, 10 and historical yields at 2.09%, 2.32% and 2.13%.

As you can see from the charts below, the dividend growth in CDN$ is generally higher, especially in the later time periods, than the US$ dividend growth. This has to do with currency exchange rates. Dividend growth is low (under 8%) to Moderate (8% to 14% range).

The Dividend Payout Ratios are good. The DPR for EPS in 2018 in US$ is 32% with 5 year coverage at 31%. The DPR for CFPS for 2018 in US$ is 15% with 5 year coverage at 21%. I did this in US$ as the statement reporting currency is US$.

Debt Ratios are of a mixed quality. I think the Liquidity Raito is far too low. Lately, the long term debt has been going down, but the Long Term Debt/Market Cap Ratio has been going up. This is because the stock price is falling. The ratio for 2018 is 0.70 with a current one of 0.68. The Liquidity Ratio for 2018 is 0.64. This means that current assets cannot cover current liabilities. If you add in Cash Flow after dividends it is still quite low at 1.10. The Debt Ratio is good at 1.84. The Leverage and Debt/Equity Ratios are 2.23 and 1.21. These are fine.

The Total Return per year is shown below for years of 5 to 22 to the end of 2018 in CDN$ for TPX.B. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	10.45%	8.77%	5.62%	3.15%
2008	10	9.19%	5.47%	3.07%	2.39%
2003	15	9.38%	6.48%	3.50%	2.97%
1998	20	7.78%	11.92%	7.97%	3.95%
1996	22	7.05%	10.78%	7.24%	3.54%

The Total Return per year is shown below for years of 5 to 25 to the end of 2018 in US$ for TAP.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	5.08%	2.86%	0.00%	2.86%
2008	10	7.99%	4.46%	1.79%	2.67%
2003	15	9.68%	7.43%	4.73%	2.69%
1998	20	8.86%	5.62%	3.50%	2.12%
1993	25	7.81%	11.44%	8.25%	3.19%
1990	28	6.95%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.01, 14.12 and 16.61. The corresponding 10 year ratios are 11.50, 13.90 and 16.42. The corresponding historical ratios are 12.01, 15.11 and 18.21. The current P/E Ratio is 12.87 based on a stock price of $73.07 and 2019 EPS estimate of $5.82 ($4.43 US$). This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $102.86. The 10 year low, median, and high median Price/Graham Price Ratios are 0.75, 0.87 and 1.02. The current P/GP Ratio is 0.73 based on a stock price of $73.07. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.13. The current P/B Ratio is 0.90 based on Book Value of $13,899M, Book Value of $61.56 and a stock price of $55.64. The current ratio is some 20% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

I get an historical median dividend yield of 1.88%. The current dividend yield is 4.10% based on dividends of $2.28 and a stock price of $55.64. The current yield is 118% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 2.43. The current P/S Ratio is 1.19 based on 2019 Revenue estimate of $10,397M, Revenue per Share of $46.93 and a stock price of $55.64. The current ratio is 51% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

Results of stock price testing is that the stock price is that the stock price is cheap to below the median. All my testing is showing the stock price from cheap to below the median. It would seem like a good price. I did some testing using US$ as this stock is mostly a US stock and it reports in US$.

Is it a good company at a reasonable price? It is probably a defensive stock. However, I do worry about the debt level and the beer market is probably a mature market. It is getting into cannabis products but lots of companies are doing this. They are not all going to be successful in this endeavor.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3), Hold (7), Underperform (2) and Sell (4). The consensus would be a Hold. The 12 months stock price if $59.00 US$. This implies a total return of $10.14% with 4.10% from dividends and 6.04% from capital gains.

The recommendations are certainly all over the place. It probably depends on how you look at this stock as either a defensive stock or if you are looking for growth. It is probably a defensive stock, but it will not probably not be a growth stock. I am using the current currency exchange rate of 1.3132 US$ to CDN$. There is a difference in prices and yield and this is probably because of low trading value for the CDN stock.

See what analysts are saying on Stock Chase. Analysts seem negative about stock. Andrew Button on Motley Fool says this is a good defensive stock to have in a recession. A writer on Simply Wall Street says information I do not have. He says they had it had an earning in the past year which I cannot find. He also said that there was a dividend cut in the past which I cannot find and I have some 28 years of data. Because dividends are paid in US$, they can fluctuate because of current exchange. Daniel Strauss on Market Insider talks about a drop in stock price because of missed earnings call. Armina Ligaya on CTV News talks about a joint venture with pot producer Hexo Corp.

Molson Coors Brewing Company, as one of the largest global brewers, Molson Coors works to deliver extraordinary brands that delight the world's beer drinkers. From Coors Light, Miller Lite, Carling, Staropramen and Sharp's Doom Bar to Leinenkugel's Summer Shandy, Blue Moon Belgian White, Hop Valley, Creemore Springs Premium Lager and Crispin Cider, Molson Coors offers a beer for every beer lover. Molson Coors operates through Molson Coors Canada, MillerCoors, Molson Coors Europe and Molson Coors International. Its web site is here Molson Coors Canada.

The last stock I wrote about was about was Pason Systems Inc (TSX-PSI, OTC-PSYTF) ... learn more. The next stock I will write about will be Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more on Wednesday, October 29, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Kevin Prins.... learn more on Tuesday, October 29, 2019 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.

Pason Systems Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. They have good debt ratios. The company seems to see better times as they raised the dividends 1918 and this year after two years of flat dividends. A negative is the lack of growth in the Book Value. See my spreadsheet on Pason Systems Inc.

I do not own this stock of Pason Systems Inc (TSX-PSI, OTC-PSYTF). I read a report on this stock in the Buy and Sell Advisor in September 2013. I had not heard of this dividend growth company before so I decided to investigate it.

When I was updating my spreadsheet, I noticed both revenue and EPS are higher than estimates. Revenue estimate was $297M and it came in as $306M. EPS estimate was $0.60 and it came in as $0.73. However, the estimates for Revenue for 2019 and 2020 were $319M and $344M last year, but have been lowered this year to $296M and $291M. The estimates for EPS have also been lowered. Last year estimates for 2019 and 2020 were of $0.77and $1.01. This year estimates for 2019 and 2020 are $0.76 and $0.86.

This stock has very good debt ratios which is very good. A negative is the non-existent growth in Book Value. They started to raise the dividends again in 2018.

This company started to pay dividends in 2003. They did a 50% increase in 2013. Since then, there has been no increase or low increases. The most recent increase was for 5.6% and it occurred in 2019. See dividend increases per year in chart below for the 5, 10 and 15 year periods.

The dividend yields in the past were low (under2%), but recently they have been moderate (2% to 4% ranges). The current dividend yield is 4.96%, with 5, 10 and historical dividend yields at 3.56%, 2.98% and 2.38%.

The Dividend Payout Ratios are currently too high, but are improving. The DPR for EPS for 2018 is 96% with 5 year coverage at 195%. The DPR for 2019 is expected to be 97%. The DPR for CFPS for 2018 is 47% with 5 year coverage at 50%.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2018 is 0.00. (It is too low to get a ratio.). The Liquidity Ratio for 2018 is 5.82 with 5 year median also at 5.82. The Debt Ratio for 2018 is 6.10 with 5 year median at 7.82. The Leverage and Debt/Equity Ratios for 2018 are 1.20 and 0.20 respectively with 5 year medians at the same value.

The Total Return per year is shown below for years of 5 to 22 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

The stock price is down again this year and it is down year to date by 16%.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	2.13%	-1.27%	-4.46%	3.19%
2008	10	13.93%	5.88%	2.67%	3.21%
2003	15	19.18%	10.46%	7.36%	3.09%
1998	20		21.65%	17.47%	4.18%
1996	22		21.12%	17.41%	3.70%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.86, 21.00 and 26.15. The corresponding 10 year ratios are 19.22, 23.89 and 28.55. The corresponding historical ratios are 13.33, 19.64 and 24.27. The current 20.16 based on a stock price of $15.32 and 2019 EPS estimate of $0.76. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $8.77. The 10 year low, median, and high median Price/Graham Price Ratios are 1.85, 2.23 and 2.64. The current P/GP Ratio is 1.75 based on a stock price of $15.32. 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 3.62. The current P/B Ratio is 3.41 based on Book Value of $386M, Book Value per Share of $4.50 and a stock price of $15.32. The current ratio is 5.8% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.38%. The current dividend yield is 4.96% based on dividends of $0.76 and a stock price of $15.32. The current dividend is 108% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 5.09. The current P/S Ratio is 4.12 based on 2019 Revenue estimate of $296M, Revenue per Share of $3.45 and a stock price of $15.32. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is cheap to reasonable. My testing is showing the stock price as either cheap or below the median. I do not see any particular problem with any of the above tests.

Is it a good company at a reasonable price? This company supports companies in the oil and gas industry and therefore is of a high risk. Sometimes these support companies do better than companies producing oil and gas. The price seems to be from cheap to reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (3) and Hold (1). The consensus would be a Buy. The 12 month stock price is $20.10. This implies a total return of 36.16% with 31.20% from capital gains and 4.96% from dividends based on a current price of $15.32.

See what analysts are saying on Stock Chase . There are few entries with the most recent one being positive. Ambrose O'Callaghan on Motley Fool thinks this is current a good dividend stock to buy. A writer on Simply Wall Street talks about institutional ownership. A writer on Simply Wall Street thinks this company can afford their dividends. A JWN staff JWN Energy talks about this company buying a stake in a technology company.

Pason Systems Inc is an oilfield specialist with fully integrated drilling data solutions. A host of products allow customers to collect, manage, report, and analyze drilling data for performance optimization and cost control. The company operates in three geographic segments: Canada, the United States, and International (Latin America, Offshore, the Eastern Hemisphere, and the Middle East). Its web site is here Pason Systems Inc.

The last stock I wrote about was about was North West Company (TSX-NWC, OTC-NWTUF) ... learn more. The next stock I will write about will be Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more on Monday, October 28, 2019 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.

North West Company

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably reasonable. Debt ratios are currently good, but debt is increasing. Dividend increases currently lower than in the past. They have a long history of paying dividends. See my spreadsheet on North West Company.

I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). 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 Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011. The

When I was updating my spreadsheet, I noticed that the debt is increasing. So far this year the increase is 42%. In 208 it was 17% and in 2017 it was 37%. The Long Term Debt/Market Cap is still fine at 0.38 currently.

Talk about dividends yields and growth. The dividends are in the moderate range (2% to 4% ranges). The current dividend is 4.69%. The 5, 10 and historical median dividend yields are 4.49%, 4.64% and 4.82%. For a while the dividend yields were higher because this company was an income trust between 1997 and 2011. The dividend yields have varied over time.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 was 72% with 5 year coverage at 83%. The DPR for CFPS for 2019 was 36% with 5 year coverage at 37%.

Debt Ratios are fine. The Long Term Debt/Market Cap ratio for 2019 is 0.24. The Liquidity Ratio for 2019 is 2.13 with 5 year median also at 2.13. The Debt Ratio for 2019 was 1.70 with 5 year median at 1.82. The Leverage and Debt/Equity Ratios for 2019 is 2.50 and 1.47 with 5 year medians at 2.20 and 1.20.

The Total Return per year is shown below for years of 5 to 27 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	4.24%	8.49%	4.07%	4.42%
2008	10	2.20%	12.06%	6.40%	5.67%
2003	15	6.47%	17.12%	9.32%	7.80%
1998	20	12.04%	18.62%	9.97%	8.65%
1993	25	9.93%	12.07%	7.03%	5.04%
1991	27	8.87%	11.33%	6.76%	4.57%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.43, 18.54 and 20.66. The corresponding 10 year ratios are 15.43, 17.65 and 19.75. The corresponding historical ratios are 9.9, 12.82 and 15.19. The current P/E Ratio is 17.38 based on a stock price of $28.15 and 2020 EPS estimate of $1.62. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $17.34. The 10 year low, median, and high median Price/Graham Price Ratios are 1.47, 1.68 and 1.84. The current P/GP ratio is 1.62 based on the stock price of $28.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 3.56. The current P/B Ratio is 3.41 based on Book Value of $402M, Book Value per Share of $8.38 and a stock price of $28.15. The current ratio is some 4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.82%. The current dividend yield is 4.69% based on dividends of $1.32 and a stock price of $18.15. The current yield is 3% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.71. The current P/S Ratio is 0.65 based on 2020 Revenue estimate of $2,097M, Revenue per Share of $45.01 and a stock price of $28.15. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. Most of the testing shows this. The exception is the dividend yield test. However, yield has varied a lot with this stock because it started as a corporation, the became an income trust and then back to a corporation. What is perhaps telling is the last of recent divided increases. There were no increases in 2019 and so far in this financial period an increase of 3.1%. This shows that management’s short term expectations are low.

Is it a good company at a reasonable price? The company seems to be a good dividend payer. They have been paying dividends each year for the past 30 years that I know of. I would expect slow growth in dividends in the future. It could be considered to be a defensive stock like Aditya Raghunath talks about in a Motley Fool write up below. The stock price is probably reasonable.

When I look at analysts’ recommendations, I find Buy (1) and Hold (4) recommendations. The consensus would be a Hold. The 12 months stock price consensus is $31.00. This implies a total return of 14.81% with 10.12% from capital gains and 4.69% from dividends.

See what analysts are saying on Stock Chase. Not a good pick by some analysts and they question the buying of a small regional airline. Aditya Raghunath on Motley Fool thinks this is a great defensive stock. Simply Wall Street says the company pays out more than the free cash flow . A writer on Market Stock Alerts says the current Price Option Signal is a Sell. A news release by the company on Newswire says the company can increase the level of non-Canadian ownership control..

The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company operates business in Northern Canada, Western Canada, rural Alaska, the South Pacific islands, and the Caribbean, with around two thirds of the company's total revenue coming from the Canadian market. Its web site is here North West Company.

The last stock I wrote about was about was Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more. The next stock I will write about will be Pason Systems Inc (TSX-PSI, OTC-PSYTF) ... learn more on Friday, 25, 2019 around 5 pm possibly. I am going on Holidays on October 20, 2019.

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.

Equitable Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The company has been doing well lately with good growth in Revenue and Earnings. I also looked at the long term return to date as the stock is up 80% so far this year. See my spreadsheet on Equitable Group Inc.

I do not own this stock of Equitable Group Inc (TSX-EQB, OTC-EQGPF). I had read a glowing report on investing on this company in 2013, so I decided to check it out. It was interesting as it was loaning money to new immigrants, a class of people who generally have a difficult time getting loans and mortgages from our regular banks. It sounded intriguing.

When I was updating my spreadsheet, I noticed that the spreadsheet is filled with green ink because this company has been doing well. The only exception is cash flow and as with banks, the cash flow can be negative. For example, the Revenue per share is up by 13% per year over the past 5 years and the 5 year running average for the latest 5 year period is up by 16% per year. Also, the EPS is up by 11% per year over the past 5 years and the 5 year running average for the latest 5 year period is up by 14% per year.

Dividends are in the low range (below2%). The current dividend is 1.24%, with 5, 10 and historical median dividend yields at 1.50%, 1.65% and 1.50%. The dividends are growing at a moderate rate (8% to 14% range). As shown in the chart below, the dividends growth is increasing. The last dividend increase was for 2019 and it was for 6.5%. However, they generally do more than one increases each year.

The Dividend Payout Ratios are very low. The DPR for EPS for 2018 is 11% with 5 year coverage at 10%.

Debt Ratios are fine. Since this is a bank type stock, you do not look at Long Term Debt/Market Cap Ratio but you look at the Long Term Debt/Long Term Assets Ratio. For this stock the ratio is 0.75 and this is good. I do calculate the Liquidity Ratio, which is 6.60 for 2018 with 5 year median of 4.83. However, this is not an important one for his sort of stock. The Debt Ratio is important and it is 1.05 which is fine for this sort of stock.

The Total Return per year is shown below for years of 5 to 15 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.60%	4.64%	3.10%	1.54%
2008	10	10.13%	20.11%	17.54%	2.58%
2003	15	9.84%	7.80%	6.44%	1.36%

Because this stock has gone up 80% this year, it is worthwhile looking at the Total Return to date. This shows much better total returns than the chart above which is to the end of 2018. The stock hit a low at the end of 2018.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.60%	11.37%	10.20%	1.17%
2008	10	10.13%	19.09%	17.51%	1.58%
2003	15	9.84%	12.24%	11.01%	1.23%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 5.43, 6.43 and 7.70. The corresponding 10 year ratios are 5.46, 6.62 and 7.64. The corresponding historical ratios are 5.67, 6.99 and 8.43. The current P/E Ratio is 9.04 based on a stock price of $106.72 and 2019 EPS estimate of 11.80. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $143.68. The 10 year low, median, and high median Price/Graham Price Ratios are 0.45, 0.53 and 0.62. The current P/GP Ratio is 0.74 based on a stock price of $106.72. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 0.98. The current P/B Ratio is 1.37 based on a stock price of $106.72, Book Value of $1,287M and a Book Value per Share of $77.73. The current ratio is some 39% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.50%. The current dividend yield is 1.24% based on dividends of $1.32 and a stock price of $106.72. The current yield is 18% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 3.21. The current P/S Ratio is 3.82 based on 2019 Revenue estimate of $463M, Revenue per Share of $27.97 and a stock price of $106.72. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably getting or is expensive. Most of the testing shows that the stock price is expensive. The ones that I like best of P/S Ratio and dividend yield show that it is relatively reasonable but above the median. However, the scores do show that the price is close to expensive.

Is it a good company at a reasonable price? This certainly looks like a good long term investment if you are willing to take on the risk. This is considered to be a high risk stock. The stock price is on the pricey side.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $105.29. This implies a loss of 0.10% with a capital loss of 1.34% and dividends of 1.24%.

See what analysts are saying on Stock Chase. They have various view and most like the company. Ambrose O'Callaghan on Motley Fool thinks that the stock is too pricey. A writer on Simply Wall Street talks about what the beta means for this stock. A writer on Simply Wall Street talks about the recent big price increase for this stock. A writer on Market Stock Alerts says the company is showing a weak buy signal.

Equitable Group Inc is a Canadian company that operates business through Equitable Bank, the company's subsidiary. The company also runs a digital bank under the EQ Bank brand. The company operates business across Canada, with the majority of mortgage principal coming from Ontario, Alberta, and Quebec. Its web site is here Equitable Group Inc.

The last stock I wrote about was about was Medtronic PLC (NYSE-MDT) ... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Friday, October 18, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Steve Hawkins.... learn more on Thursday, October 17, 2019 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.

Medtronic PLC

Sound bite for Twitter and StockTwits is: Dividend Growth Health Care. It is probably on the expensive side. Debt Ratios are very good and with a decreasing debt. EPS expectation seem to be going down. Last dividend increase was lower than for the last 5 years. See my spreadsheet on Medtronic Inc.

I do not own this stock of Medtronic PLC (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. This is one of the few US stocks that I follow. This stock has the financial year ending at the end of April each year. So, the financial year I am talking about is the one ending in April 2019.

When I was updating my spreadsheet, I noticed analysts still expect good increases in EPS, but not as high as previously thought. Last year the EPS estimates for 2020 and 2021 were $4.15 and $4.56 for EPS. This year, the estimates for 2020 and 2021 were $3.99 and $4.54. So lower for both years, but a lot lower for 2020 and 2021 is close. The 2019 EPS estimate was $3.79, but it came in at $3.41. Another notable thing is that the Debt Ratios are very good.

The dividend yield ranges from low (below 2%) to moderate (2% to 4% range). The current dividend is 2.01% with the 5, 10 and historical medians at 2.11%, 2.37% and 0.82%. The historical one is low because dividend yields were under1% until 2009. In 2009 there was a 50% increase in dividends. The dividend growth used to be in the Good range (15% and above), but is now in the moderate range (8% range to 14% range). See the chart below.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 is 59% with 5 year coverage at 62%. The DPR for CFPS for 2019 is 33% with 5 year coverage at 39%. Debt has been decreasing, as it was higher and with a ratio of 0.32 in 2016.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2019 is 0.21. The Liquidity Ratio is very good and high at 2.59. The Debt Ratio is also very good and high at 2.27. The Leverage and Debt/Equity Ratios are also very good and low at 1.79 and 0.79.

The Total Return per year is shown below for years of 5 to 29 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.30%	12.02%	9.65%	2.37%
2008	10	10.31%	13.70%	11.22%	2.48%
2003	15	13.74%	5.72%	4.27%	1.45%
1998	20	14.64%	5.84%	4.61%	1.23%
1993	25	16.66%	15.67%	13.30%	2.37%
1989	29	16.74%	17.94%	15.21%	2.74%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 26.02, 29.02 and 32.17. The corresponding 10 year ratios are 19.44, 22.17 and 24.90. The corresponding historical ratios are 22.67, 26.44 and 31.28. The current P/E Ratios is 26.96 based on a stock price of $107.58 and an EPS of $3.99. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $58.07. The 10 year low, median, and high median Price/Graham Price Ratios are 1.29, 1.51 and 1.73. The current P/GP Ratio is 1.85 based on a stock price of $107.58. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.28. The current P/B Ratio is 2.86 based on a Book Value of $50,363M, Book Value per Share of $37.56 and a stock price of $107.58. The current ratio is some 26% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.82%. The current yield is 2.01% based on Dividends of $2.16 and a stock price of $107.58. The current yield is 145% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap

However, there is a problem with the dividend yield testing. They made a conscious effort to raise the yield on this stock in 2009 when they increased the dividend by 50%. The yield since then is 2.11%. This yield is 5% above the current yield of 2.01%. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 3.35. The current P/S Ratio is 4.58 based on 2020 Revenue estimate of $31,492M, Revenue per Share of $23.49 and a stock price of $107.58. The current ratio is some 37% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. The dividend yield testing is the only test that says it is relatively reasonable. I noted one problem with this test above. Another problem is that the Dividend Payout Ratio has been increasing a lot. Dividends are growing faster than EPS. On the other hand, analysts expect that the EPS will be increasing nicely in the future. On the other hand, the most recent dividend increase was lower than the average for the past 5 years at 8%, with the 5 year increase at 12.30% per year.

Is it a good company at a reasonable price? This stock would seem to be a good one for both the dividend yield and growth and the capital gains shareholders have earned. For the 15 and 10 year capital gains that were low at 4.27% and 4.61%, the starting P/E Ratios were 30.38 and 94.73. I think that the stock price is probably expensive currently.

When I look at analysts’ recommendations, I find Strong Buy (12), Buy (7) and Hold (9). The consensus would be a Buy. The 12 month stock price consensus is $117.77. This implies a total return of 11.48% with 9.47% from capital gains and 2.01% from dividends.

See what analysts are saying on Stock Chase. Analysts like this company. Keith Speights on Motley Fool says the company has been raising dividends for 42 years.. A writer on Simply Wall Street says this stock has an intrinsic value of $93.95 which is close to the current value of $107.89, so current value is fair. A writer on Simply Wall Street says the view from 25 analysts is positive for this stock. Markets Insider Automation on Markets Insider says what Wall Street expects from this stock in the third quarter.

Medtronic Public Limited Company, headquartered in Dublin, Ireland, is among the world's largest medical technology, services, and solutions companies - alleviating pain, restoring health, and extending life for millions of people around the world. Its web site is here Medtronic Inc.

The last stock I wrote about was about was Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. The next stock I will write about will be Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more on Wednesday, October 16, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Lorne Steinberg.... learn more on Tuesday, October 15 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.

Canadian Pacific Railway

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably on the expensive side. The good news is that the dividend increase done in 2019 was for 27.7%. It has a low DPR for EPS and CFPS. See my spreadsheet on Canadian Pacific Railway.

I do not own this stock of Canadian Pacific Railway (TSX-CP, NYSE-CP). I am following this stock because it is a dividend growth stock. It is one that was on Mike Higgs' list. It is a stock I held from 1987 to 1999 so I am following it. I also held it 2006 to 2011. I decided in 2011 to have only one railway stock and chose CN as my railway stock.

When I was updating my spreadsheet, I noticed estimates have gone up. Last year the estimates for 2019 and 2010 were $7,776M and $8,329M for Revenue and the current estimates for 2019 and are $7,858 and $8,337. Last year the estimate for EPS for were $15.90 and $18.00 and the current estimates for these years are $17.70 and $18.60. The last dividend increase was for 27.7% for 2019.

The dividend yield for this stock is low (under 2%). The current dividend yield is 1.16%. The 5, 10 and historical median dividend yields are 0.95%, 1.02% and 1.40%. Dividend increases are in the moderate range (8% to 14% ranges). See the chart below. Currently, for this stock the yields on original investment after 5, 10, 15, 20, and 25 years would be 1.49%, 6.55%, 8.35%, 18.30%, and 26.91%

The Dividend Payout Ratios are good. The DPR for EPS for 2018 was 18% with 5 year coverage at 16%. The 10 year median DPR for EPS is 22%. The DPR for CFPS for 2018 was 13% with 5 year coverage at 12%. The 10 year median DPR for CFPS is 13%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 was 0.24. The Liquidity Ratio for 2018 was 057% with a 5 year median of 0.75. If you add in cash flow after dividends, the ratio is 1.78% with 5 year median of 2.12. The Debt Ratio for 2018 was 1.45 with 5 year median also at 1.45. The Leverage and Debt/Equity Ratios for 2018 was 3.20 and 2.20 respectively. The 5 year medians were at 3.00 and 2.00 respectively. These are a little high, but not abnormally high for this sort of company.

The Total Return per year is shown below for years of 5 to 24 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	11.61%	52.86%	50.19%	2.67%
2008	10	9.37%	21.09%	19.44%	1.64%
2003	15	10.95%	14.76%	13.44%	1.32%
1998	20	10.24%	16.50%	15.17%	1.33%
1994	24		14.98%	14.00%	0.98%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.87, 18.54 and 21.21. The corresponding 10 year ratios are 14.98, 17.90 and 20.94. The corresponding historical ratios are 11.54, 13.79 and 16.67. The current P/E Ratio is 16.17 based on a stock price of $186.14 and 2019 EPS estimate of $17.70. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $143.28. The 10 year low, median, and high median Price/Graham Price Ratios are 1.58, 2.00 and 2.37. The current P/E Ratio is 2.00 based on a stock price of $286.14. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get a 10 year median Price/Book Value per Share Ratio of 4.05. The current P/B Ratio is 5.35 based on Book Value of $7,157M, $51.55 and a stock price of $186.14. The current P/B Ratio is 37% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.40%. The current dividend yield is 1.16% based on dividends of $2.12 and a stock price of $186.14. The current dividend is 17% below the historical median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 4.26. The current P/S Ratio is 5.06 based on 2019 Revenue estimate of $7,858, Revenue per Share of $56.60 and a stock price of $186.14. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is certainly not cheap and it could be a bit pricey. Both the Dividend Yield test and the P/S Ratio testing show that the stock price is above the median. The P/B Ratio testing show that it is expensive. This is because the Book Value’s growth has been weak. Part of the reason is the change in accounting rules in 2010. Also, the Net Income is increasing at a higher rate than the Comprehensive Income. Still the P/S Ratio testing show the stock price close to be expensive also.

Is it a good company at a reasonable price? This is certainly a good dividend growth stock. Personally, I would like to see a higher yield. They have room to move the dividend higher and there was a big increase this year at 27.7%. However, DPR is still low for 219 at 17%.

When I look at analysts’ recommendations, I find Strong Buy (9), Buy (8) Hold (11) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $329.22. This implies a total return of 16.22% with 15.06% from capital gains and 1.16% from dividends.

See what analysts are saying on Stock Chase. They like it but one analyst thinks it might be running out of gas. Kay Ng on Motley Fool thinks that CP has better value than CN. A writer on Simply Wall Street says the ROE for this company is higher than average in the transportation industry. A writer on Simply Wall Street says that the stock price is close to the stock’s intrinsic value. Marion Hillson on The Enterprise Leader talks about National Bank Financial decreasing this stocks target price recently..

Canadian Pacific is a CAD 7.3 billion railroad operating on 12,500 miles of track across most of Canada and in the Midwestern and Northeastern United States; it is the second-smallest Class I railroad by revenue and route miles. Its web site is here Canadian Pacific Railway.

The last stock I wrote about was about was Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more. The next stock I will write about will be Medtronic PLC (NYSE-MDT) ... learn more on Tuesday, October 15, 2019 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.

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Materials Stock. The only hint about what the stock might be worth is the recent private placement at $0.10 and warrant to buy more within 24 months at $0.15. This company has no revenue and only earnings losses. See my spreadsheet on Trigon Metals Inc.

I own this stock of Trigon Metals Inc (TSX-TM, OTC-PNTZF). I originally brought this stock in 2000 as Tathacus Resources Ltd. because it was doing interesting things. It was part of a basket of small caps that I was buying at that time. There was a reverse takeover (RTO) of this company on April 28, 2011 by Pan Terra Industries Inc. Symbol PNT. On May 2, 2012 there was a name change from Pan Terra Industries (PNT) to Kombat Copper Inc. (KBT). It is worth less than $10 fee to sell, so I am holding.

When I was updating my spreadsheet, I noticed the company still has no revenue. They issued more shares and outstanding shares when up by 68%. The new shares were via private placement in October 2018 at $0.15 a share. Shares outstanding have gone up by 32% per year over the past 5 years and 53% per year over the past 10 years. Any green on the spreadsheet just denote less bad results and not anything positive.

This stock, of course, has no dividends.

Debt Ratios are not good and having a negative book value is a vulnerability. The Long Term Debt/Market Cap Ratio for 2018 is 0.27. They only took on long term debt for the first time in 2018. Because of the rise in the stock price, the current Long Term Debt/Market Cap Ratio is 0.18. The Liquidity Ratio for 2018 is 1.44, with5 year median also at 1.44. The Debt Ratio is 0.56. This means that assets cannot cover the liabilities and they have a negative book Value. However, the book value just turned negative last year. With a negative book value, the Leverage and Debt/Equity Ratios cannot be calculated.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Tot Ret	Cap Gain
2013	5	-43.03%	-43.03%
2008	10	-38.69%	-38.69%
2003	15	-33.11%	-33.11%
1998	20	-26.04%	-26.04%
1997	21	-18.99%	-18.99%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative as is the corresponding 10 year ratios and the historical ratios. This testing cannot be done. Since they have no earnings, I cannot get a Graham Price, so this testing cannot be done.

I get a 10 year median Price/Book Value per Share Ratio of 3.70. However, the current P/B Ratio is negative. So, this testing cannot be done. I cannot do any dividend yield testing as there is no dividend. There are no revenues, so I cannot do any Price/Sales (Revenue) Ratio testing.

Results of stock price testing is that the stock price is that it is impossible to judge the stock price on any basis that I know of. However, there was a recent private placement at $0.10 with a warrant to buy shares at $0.15 within 24 months. Private placements are usually for better deal than you would find on the open market. This will give an idea of what the shares might be worth.

When I look at analysts’ recommendations, I find there are no analysts following this stock.

Juniorbullalive has a post on Stockhouse Bullboard about mines in Namibia. The CEO of trigon Metals provides an update. The company on Globe Newswire talk about a recent private placement. A writer on Simply Wall Street talks about insider buying shares in the company.

Trigon Metals Inc together with its subsidiaries engages in the acquisition, exploration, development, and maintenance of mines and mineral properties in the African country of Namibia. It operates through the development of its Namibian mining and exploration permits segment. The company's project includes Kombat Mine, Gross Otavi and Harasib. Its web site is here Trigon Metals Inc.

The last stock I wrote about was about was Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Friday, October 11, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Michael Cooke.... learn more on Thursday, October 10, 2019 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.

Logistec Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price maybe currently expensive. The last dividend increase was for only 3%. Because this is lower than recent past increases, this is a cautionary note. Debt seems to be increasing rapidly, so this gives a cautionary note. See my spreadsheet on Logistec Corp.

I do not own this stock of Logistec Corp (TSX-LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger’s all-star spreadsheet for March 2017.

When I was updating my spreadsheet, I noticed the lack of clarity on their site as to who was the Chairman of the Board. For the board of directors, they give picture and you have to run your cursor over the picture to see who people are. None showed as chairman and bio on the person I have as Chairman did not say he was still or ever the chairman. I had to google this information. I do not see why they cannot just tell you this sort of information. This is annoying to say the least.

Another thing I notice was that long term debt is increasing rapidly. Last four years increases were 88.05%, 29.23%, 105.25%, and 66.97%. The last increase is for the first two quarters of 2019. The Long Term Debt/Market Cap Ratio is not high at 0.54, but the big increases in debt might be.

The dividend yield on Class B shares are low (under 2%). The current dividend yield is 1.09% with 5, 10 and historical median dividend yields at 0.76%, 0.96% and 1.92%. The current dividend yield for Class A shares are also low, with a current dividend yield of 0.91% and 5, 10 and historical dividend yields at 0.69%, 0.82% and 1.73%. The dividend growth was low (under 8%) until recently and then the growth became moderate (8% to 14% ranges). See the charts below.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 for Class B shares is 26% with 5 year coverage at 24%. The DPR for CFPS for 2018 for Class B shares is 14% with 5 year coverage at 18%. The DPR for EPS for 2018 for Class A shares is 26% with 5 year coverage at 22%. The DPR for CFPS for 2018 for Class B shares is 14% with 5 year coverage at 18%.

Debt Ratios are fine but all are moving in the wrong direction. The Long Term Debt/Market Cap Ratio for 2018 is 0.30 with the 10 year median at 0.14. The Liquidity Ratio for 2018 is 1.65 with 5 year median at 2.25. The Debt Ratio for 2018 is 1.71 with 5 year median at 2.33. The Leverage and Debt/Equity Ratios for 2018 are 2.43 and 1.42 with 5 year medians at 1.77 and 0.76.

The Total Return per year is shown below for years of 5 to 22 to the end of 2018 for Class B Subordinate Voting Shares. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.53%	11.05%	9.49%	1.56%
2008	10	8.12%	26.26%	23.77%	2.49%
2003	15	7.78%	18.37%	15.71%	2.66%
1998	20	6.28%	11.88%	10.23%	1.65%
1996	22	5.94%	15.75%	12.11%	3.64%

The Total Return per year is shown below for years of 5 to 20 to the end of 2018 for Class A with 30 votes per share.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.53%	9.68%	8.24%	1.44%
2008	10	8.12%	25.37%	23.06%	2.31%
2003	15	7.78%	17.73%	15.27%	2.46%
1998	20	6.28%	11.28%	9.77%	1.51%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.81, 17.77 and 20.72. The corresponding 10 year ratios are 8.52, 11.12 and 14.38. The corresponding historical median ratios are 8.81, 10.73 and 12.32. The current P/E Ratio is 21.57 based on a stock price of $37.65 and last 12 month EPS of $1.75. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $27.95. The 10 year low, median, and high median Price/Graham Price Ratios are 0.80, 1.11 and 1.39. The current P/GP ratio is 1.35 based on a stock price of $37.65. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.10. The current P/B Ratio is 1.89 based on a stock price of $37.65, Book Value of $252M and Book Value per Share of $19.89. The current ratio is some 10% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 1.92%. The current dividend yield is 1.09% based on dividends of $0.41 and a stock price of $37.65. The current yield is some 43% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.94. The current P/S Ratio is 0.76 based on the last 12 months of revenue of $624M, Revenue per Share of $49.28 and a stock price of $37.65. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably expensive. The stock price testing done on the dividend yield shows this stock as expensive and this might be the only really valid test. This might be supported by the most recent dividend increase which was this year and for only 3%.

The problem with analyzing this company is that they have Class A and Class B stocks which have not only their own share price but also their own EPS and dividends. This complicates testing using EPS and makes you wonder how good that testing is.

Is it a good company at a reasonable price? I think that this is an interesting company but they really complicate things with their separate classes of shares with their own earnings. I do not like complex when it comes to companies to invest in. It is hard to say about the price. It may be expensive, then maybe not. I could be wrong. If you look at start P/E for the total returns for the past 5, 10, 15, and 20 years, they are 12.88, 5.10, 131.08 and 11.52. For the high P/E start for year 15, the EPS dropped 90% in that year and then fully the next year. EPS went from $0.41 to $0.04 to $0.59. So mostly the start P/Es were lower than the current one.

When I look at analysts’ recommendations, I find no analysts following this stock. The Morningstar Quant Report gives it 3 stars out of a possible 5 stars and says that it is currently fairly valued. The Wall Street Journal gave it an analyst’s rating of Hold with one analyst. But it also gives a target price of $7.50 which makes no sense.

See what analysts are saying on Stock Chase. They are no well followed but the company is liked. James Watkins-Strand on Motley Fool likes this company but thinks it is a bit expensive. A writer on Simply Wall Street talks about institutional ownership. A writer on Simply Wall Street thinks the ROE is low and unimpressive. Jay Miller on Crain’s Cleveland Business talks about this company the new operator for Port of Cleveland.

Logistec Corp provides specialized cargo handling and other services to a wide variety of marine, industrial, and municipal customers. It has cargo-handling facilities in eastern North America, short-line rail transportation services, and marine agency services to foreign shipowners and operators serving the Canadian market. Its web site is here Logistec Corp.

The last stock I wrote about was about was Teck Resources Ltd (TSX-TECK.B, NYSE-TECK)... learn more. The next stock I will write about will be Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Wednesday, October 09, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Peter Hodson.... learn more on Tuesday, October 08, 2019 around 5 pm.

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