I do not own this stock (TSX-IFC). TD Waterhouse put out a report on good dividend paying stocks to own. This was a stock they named. I had not heard of it before, so I decided to investigate it. TD reports is at TD Waterhouse. (Note that this company used to be ING Group)
The company has only been paying dividends only since 2005. The growth in dividends over the past 5 years is 8.16%. The most recent dividend increase, at the beginning of 2011 was 8.8%. In the past they have increase their dividends at the beginning of the year. They have not yet announced their increase for 2012, but this is not due until March 2012.
The 5 year median dividend yield 3.1% and the current one is 2.6%. The Dividend Payout Ratios are good at 37.5% for earnings and 28.5% for cash flow. The potential return in 10 years’ time, if you purchase this stock today, is 5.64%.
Growth has been just ok. However, this is a general insurance company and you can expect to see more volatility in earnings and cash flows that what you would see in other insurance companies, like life insurance. The upside to this is that this stock can offer some really good entry points for buying.
Growth in Cash Flow is best with a 5 year growth at 11% per year. The worse is in earnings, which is down 9% per year over the past 5 years. Growth in both revenues and book value are mediocre. Revenue growth over past 5 years is 4.6% per year and book value growth over the past 5 years is 4.8% per year.
The Liquidity Ratio has fluctuated, but the current one at 18.05 is extremely good. On the other hand, the current Asset/Liability Ratio is mediocre at 1.27. This is lower than the 5 year median ratio of 1.37. The Leverage and Debt/Equity Ratios are a little high at 5.27 and 4.14. These are also higher than the 5 year median ratios of 3.76 and 2.76.
The Return on Equity has fluctuated, but the one for the last quarter ending September 30th is good at 12.7%. The ROE for the end of the 2010 financial year was only a bit better at 13.7%.
When I look at insider trading, I find that there has been $1.9M of insider selling and a minimal amount of insider buying. This company does not seem to have stock options for insiders, but they do have a similar long term stock incentive plan. There are a lot of insiders under this plan, and they generally have more stock incentive shares than stock shares.
There are 414 institutions that hold some 41% of the shares of this company. There has been buying and selling over the past 3 months, however, they have increased their exposure to this company by3.6% over the past 3 months.
The 5 year median high and low Price/Earnings Ratios are 11.96 and 14.94. On a relative basis, the current P/E of 10.07 would be low. (The 10 year median P/E is 10.13.) I get a current Graham Price of $60.58 and the current stock price of $56.70 is some 6.4% lower. The median and high difference between the Graham Price is the stock being 12.2% lower and 10.8% higher, respectively. This points the stock price above the median one, but below the high one, relatively.
I get a 10 year median Price/Book Value of 1.69 and a current one of 1.96. This puts the current ratio some 16% above the long term one. I get a 5 year median Dividend Yield of 3.09% and a current one of 2.61%. The low yield over the past 7 years is 2.32%.
All these tests, except for the P/E Ratio, show a reasonable, but not great stock price. Since the P/E ratio is based on earning estimates, I think the price is reasonable, but not great.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy. With this Buy recommendation comes with a 12 months stock price of $66.98. A Hold recommendation comes with a 12 month stock price of $64. Analysts agree that this is a well-run company. Many think that earnings are going to soar in 2012 and this is the reason for the low P/E Ratio.
A number of analysts mention the recent growth by 40% when they acquired a Canadian subsidiary of a French company, AXA Canada. I have not invested in any general insurance companies. I took a look at this because of the TD report I mentioned. Dividend is ok at 2.6%. I have always thought of general insurance companies a rather volatile as far as earnings go. However, if you are patient and wait for the next down turn in the general insurance industry, you could probably pick this company up cheaply.
Intact Financial Corporation (www.intactfc.com) is the largest provider of property and casualty insurance in Canada. Intact offers home, auto and business insurance through Intact Insurance, Novex Group Insurance, Belairdirect, GP Car and Home and BrokerLink. Its web site is here Metro. See my spreadsheet at ifc.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, January 13, 2012
Thursday, January 12, 2012
Metro Inc 2
I own this stock (TSX-MRU.A). I bought this stock in 2004. I have made a total return of 18.23% per year. The portion of this return attributable to dividends would be only 1.35%. This is quite typical of grocery stocks. Dividend yields are usually always low, but dividend increases are good.
Over the past year there has been insider trading, but mostly insider selling to the tune of $16.3M and minimal inside buying. It would appear that insiders are selling off stock options. All insiders, except for directors, have more stock options than shares. Metro is also buying back shares.
There are 139 institutions that own some 36% of this company. Over the past 3 months they have reduced their exposure to this company marginally (by less than 1%).
The 5 year median high and low Price/Earnings Ratios are 9.08 and 13.18 respectively. The current price of $52.41 has a P/E of 12.27. This shows a relatively high stock price. I get a Graham Price of $49.40. The current stock price is some 6.1% higher. The median difference between the Graham Price and the stock price is the stock price being 6.98% higher. This difference points to a relatively reasonable stock price.
I get a 10 year median Price/Book Value Ratio of 2.16 and a current P/B Ratio of 2.06, some 3% lower. This lower P/B Ratio points to a reasonable stock price. The 5 year median Dividend Yield is 1.6%. The current dividend yield is only 1.47%, a value 8% lower. This difference points to a relatively high stock price. The 10 year median dividend yield on high stock prices is 1.33%. This says that the stock price has been relatively higher.
My stock price tests are mixed, but I believe that they point to a relatively high price, although the stock has, in the past been relatively higher.
So, what do the analysts say? I find recommendations of Strong Buy, Buy, Hold, Underperform and Sell. The consensus recommendation would be a Buy. There are more recommendations on the buy side, than the underperform/sell side. One Buy comes with a 12 month stock price of $56. One analyst said that the company is cost-focused.
Another analyst said that this company is well-run, but he felt that the whole industry is suffering from margin compression, which he does not like. This is similar to my worry about lack of increase in revenues discussed in my posting of yesterday.
See a recent reports from G&M, with one dated November 16, 2011 and another one dated the same day.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro. See my spreadsheet at mru.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Over the past year there has been insider trading, but mostly insider selling to the tune of $16.3M and minimal inside buying. It would appear that insiders are selling off stock options. All insiders, except for directors, have more stock options than shares. Metro is also buying back shares.
There are 139 institutions that own some 36% of this company. Over the past 3 months they have reduced their exposure to this company marginally (by less than 1%).
The 5 year median high and low Price/Earnings Ratios are 9.08 and 13.18 respectively. The current price of $52.41 has a P/E of 12.27. This shows a relatively high stock price. I get a Graham Price of $49.40. The current stock price is some 6.1% higher. The median difference between the Graham Price and the stock price is the stock price being 6.98% higher. This difference points to a relatively reasonable stock price.
I get a 10 year median Price/Book Value Ratio of 2.16 and a current P/B Ratio of 2.06, some 3% lower. This lower P/B Ratio points to a reasonable stock price. The 5 year median Dividend Yield is 1.6%. The current dividend yield is only 1.47%, a value 8% lower. This difference points to a relatively high stock price. The 10 year median dividend yield on high stock prices is 1.33%. This says that the stock price has been relatively higher.
My stock price tests are mixed, but I believe that they point to a relatively high price, although the stock has, in the past been relatively higher.
So, what do the analysts say? I find recommendations of Strong Buy, Buy, Hold, Underperform and Sell. The consensus recommendation would be a Buy. There are more recommendations on the buy side, than the underperform/sell side. One Buy comes with a 12 month stock price of $56. One analyst said that the company is cost-focused.
Another analyst said that this company is well-run, but he felt that the whole industry is suffering from margin compression, which he does not like. This is similar to my worry about lack of increase in revenues discussed in my posting of yesterday.
See a recent reports from G&M, with one dated November 16, 2011 and another one dated the same day.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro. See my spreadsheet at mru.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, January 11, 2012
Metro Inc
I own this stock (TSX-MRU.A). I bought this stock in 2004. I have made a total return of 18.23% per year. The portion of this return attributable to dividends would be only 1.35%. This is quite typical of grocery stocks. Dividend yields are usually always low, but dividend increases are good.
This stock is on the dividend lists that I follow of Dividend Achievers (see resources) and Dividend Aristocrats (see indices). It is considered to be a dividend paying growth stock. These stocks are characterized by low dividend yields, high dividend growth and good capital gains.
I have had this stock for 8 years and the yield on my original investment is 4.36%. The dividend growth over the last 5 and 10 years has been at 11.8% and 15.4% per year, respectively. The last dividend increase for the 2011 financial year was for 13.2%. The 5 year median dividend yield is 1.6%.
The dividend yield has always been quite low on this stock and with this comes very low Dividend Payout Ratios. The DPRs for Earnings is 19.4 and for cash flow is 13%. The 5 year median DPR for earnings is 19% and for Cash Flow is 12%.
Mostly growth is good. The exception is growth in Revenue. Revenue growth over the past 5 and 10 years is up by 1% and 8.9% per year, respectively. Revenue growth per share is up 3.5% and 8.8% per year, respectively. The reason for the difference in revenue and revenue per share over the past 5 years is that the company has been buying back stock, so there are fewer shares now than 5 years ago.
Future revenue growth over the next two years is not expected to be very high either. This could be a problem as it is revenue growth that ultimately fuels a company’s growth. Without growth in earnings and cash flow, you cannot grow dividends.
For total return over the past 5 and 10 years, growth has been at 7.4% and 19.3% respectively. The portion of the return attributable to dividends is 1.5% and 2.2%, respectively. Earnings, Cash Flow and Book Value growth are all good. For example, EPS growth over the past 5 and 10 years is at 11.3% and 12% per year, respectively.
Liquidity Ratios are fine. The current one is 1.16 which is low but ok. It is better than the 5 year median one of 1.09. The Asset/Liabilities ratio has always been very good. The current one is at 2.07 and this ratio has a 5 year median value of 1.94. The Leverage and Debt/Equity Ratios are fine at 1.93 and 0.93. They are better than the 5 year median values of 2.06 and 1.06, respectively. (See my site for further information on Debt Ratios.)
The Return on Equity Ratios has generally been good and the one for the end of the financial year ending in September is 15%. The 5 year median ROE is 15%. The ROE based on the Comprehensive Income is also good at 15%. The good range for the ROE is the 10% to 15% range. A lot of companies are now reporting the Comprehensive Income. For more information on this, see Wikipedia.
I have been pleased with the performance of this stock. It is classified as a consumer staple stock. I started to invest in such stock once I had invested in enough utilities and financial stocks. However, I am keeping an eye on the revenues.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro. See my spreadsheet at mru.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
This stock is on the dividend lists that I follow of Dividend Achievers (see resources) and Dividend Aristocrats (see indices). It is considered to be a dividend paying growth stock. These stocks are characterized by low dividend yields, high dividend growth and good capital gains.
I have had this stock for 8 years and the yield on my original investment is 4.36%. The dividend growth over the last 5 and 10 years has been at 11.8% and 15.4% per year, respectively. The last dividend increase for the 2011 financial year was for 13.2%. The 5 year median dividend yield is 1.6%.
The dividend yield has always been quite low on this stock and with this comes very low Dividend Payout Ratios. The DPRs for Earnings is 19.4 and for cash flow is 13%. The 5 year median DPR for earnings is 19% and for Cash Flow is 12%.
Mostly growth is good. The exception is growth in Revenue. Revenue growth over the past 5 and 10 years is up by 1% and 8.9% per year, respectively. Revenue growth per share is up 3.5% and 8.8% per year, respectively. The reason for the difference in revenue and revenue per share over the past 5 years is that the company has been buying back stock, so there are fewer shares now than 5 years ago.
Future revenue growth over the next two years is not expected to be very high either. This could be a problem as it is revenue growth that ultimately fuels a company’s growth. Without growth in earnings and cash flow, you cannot grow dividends.
For total return over the past 5 and 10 years, growth has been at 7.4% and 19.3% respectively. The portion of the return attributable to dividends is 1.5% and 2.2%, respectively. Earnings, Cash Flow and Book Value growth are all good. For example, EPS growth over the past 5 and 10 years is at 11.3% and 12% per year, respectively.
Liquidity Ratios are fine. The current one is 1.16 which is low but ok. It is better than the 5 year median one of 1.09. The Asset/Liabilities ratio has always been very good. The current one is at 2.07 and this ratio has a 5 year median value of 1.94. The Leverage and Debt/Equity Ratios are fine at 1.93 and 0.93. They are better than the 5 year median values of 2.06 and 1.06, respectively. (See my site for further information on Debt Ratios.)
The Return on Equity Ratios has generally been good and the one for the end of the financial year ending in September is 15%. The 5 year median ROE is 15%. The ROE based on the Comprehensive Income is also good at 15%. The good range for the ROE is the 10% to 15% range. A lot of companies are now reporting the Comprehensive Income. For more information on this, see Wikipedia.
I have been pleased with the performance of this stock. It is classified as a consumer staple stock. I started to invest in such stock once I had invested in enough utilities and financial stocks. However, I am keeping an eye on the revenues.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro. See my spreadsheet at mru.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, January 10, 2012
Year 2011 and Last Quarter
How did the TSX do last year? Over the past 5 years, the TSX has declined 7.4%. This is the 4th such occurrence of a 5 year decline in the TSX since 1956. For 2011, the TSX declined 11%. The 5 year compound return on the TSX is a negative 1.52% per year.
For the TSX it is hard to get any long term data on dividends. However, the TSX site does provide some current information. See TSX Money site and go Indices & Constituents. If you click on the S&P/TSX Composite Index you will get some current information. One piece is current dividend yield which is running around 2.8%. If that was also the dividend yield for last year, it would imply a loss of 8.2% for the TSX last year.
Today, Thursday, January 12th, one commentator said including dividends, the TSX is down 8.7% in 2011.)
I have read a number of studies on this subject and none seem to agree with each other. I had read a study in the past the said that dividends add 2% return to the TSX over the long term and considering the dividend yield is current 2.8%, this sounds reasonable. Do not forget that dividend yield and the stock market go in the opposite direction. So, as the stock market goes up, the dividend yield will go down and visa versa. Also, Boom and Echo twitted a link on this subject for S&P 500. See Dividends.
So, how did I do? Over the past 5 years my portfolio’s return is 4.72% per year. The part of my return attributable to income is 67% per year. Since I am taking money out each year, my portfolio has increased at the rate of 1.84% per year. The difference between the 1.84% per year and the 4.72% a year is the money I have taken out each year, which is around 3% per year.
Last year my portfolio’s total return was 4.92%. I took out 3%. The part of my total returns attributable to dividends last year was 70%. (This compares to 25% in 2010 and 14% in 2009.) This would mean my stocks were up 1.92 %.)
Today, I am updating my spreadsheet on dividends. I have marked in blue those stocks I hold that have increased their dividends in the last quarter of 2011. These stocks are:
AltaGas Ltd (TSX-ALA);
Alimentation Couche Tard (TSX-ATD.B)
Emera Inc. (TSX-EMA)
McCoy (TSX-MCB)
Toronto Dominion Bank (TSX-TD)
Toromont Industries Ltd. (TSX-TIH)
AltaGas Ltd changed from an income trust in 2010 and reduced their dividends by some 38%. In 2011 they made their first increase after this change. The dividend was increased by 4.5% in the 4th quarter of 2011. Prior to the change from an income trust this company had a habit of yearly dividend increases. Current dividend yield is good at 4.34%.
For my last blog entries on this stock in April 2011, click here or here.
Alimentation Couche Tard has a habit of yearly increasing their dividends. The 5 year growth in dividends is 12.5% per year. In the 4th quarter they increased their dividends by 20%. This is the second increase for 2011. However, the dividend yield is low on this stock at 1%.
For my last blog entries on this stock in August 2011, click here or here.
Emera Inc. also increases their dividend yearly, and increases over the past 5 years were at 5.5% per year. The 5 year median dividend yield was 4.4%. Their dividend increase for 2011 occurred in the last quarter of 2011 and was for 3.8%.
For my last blog entries on this stock in June 2011, click here or here.
McCoy Corp is a rather risky small cap stock that pays dividends. I used it to soak up the small amount of cash I had left in the TFSA after my main purchase. Dividends are a little inconsistent as they stopped them entirely in 2010. It was a prudent move on their part not to pay dividends they could not afford. However, with the dividend increases in the last quarter of 2011, dividends are the highest they have ever been. Dividends are currently at a great yield of 5.1%.
For my last blog entry on this stock in May 2011, click here.
Toromont Industries Ltd. had a dividend increase of 10%. If you look at some charts, the stock seemed to fall off a cliff in June and decreased their dividends. However what happened was that they spun off Enerflex. Their dividends were not decreased if you held on to Enerflex. (Personally I was not interested in holding as a stock and have sold off the shares I received.)
For my last blog entries on this stock in March 2011, click here or here.
Toronto Dominion Bank ended their last financial year of October 2011 with another dividend increase. This is the second increase for this bank in that financial year. This last increase was for 3%. The total increase in dividends for this last financial year was 11.5%. The current yield for TD is 3.56%. Before this latest crisis, TD had a good track record of dividend increases.
For my last blog entries on this stock in December 2011, click here or here.
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. See my website for stocks followed and investment notes. Follow me on twitter.
For the TSX it is hard to get any long term data on dividends. However, the TSX site does provide some current information. See TSX Money site and go Indices & Constituents. If you click on the S&P/TSX Composite Index you will get some current information. One piece is current dividend yield which is running around 2.8%. If that was also the dividend yield for last year, it would imply a loss of 8.2% for the TSX last year.
Today, Thursday, January 12th, one commentator said including dividends, the TSX is down 8.7% in 2011.)
I have read a number of studies on this subject and none seem to agree with each other. I had read a study in the past the said that dividends add 2% return to the TSX over the long term and considering the dividend yield is current 2.8%, this sounds reasonable. Do not forget that dividend yield and the stock market go in the opposite direction. So, as the stock market goes up, the dividend yield will go down and visa versa. Also, Boom and Echo twitted a link on this subject for S&P 500. See Dividends.
So, how did I do? Over the past 5 years my portfolio’s return is 4.72% per year. The part of my return attributable to income is 67% per year. Since I am taking money out each year, my portfolio has increased at the rate of 1.84% per year. The difference between the 1.84% per year and the 4.72% a year is the money I have taken out each year, which is around 3% per year.
Last year my portfolio’s total return was 4.92%. I took out 3%. The part of my total returns attributable to dividends last year was 70%. (This compares to 25% in 2010 and 14% in 2009.) This would mean my stocks were up 1.92 %.)
Today, I am updating my spreadsheet on dividends. I have marked in blue those stocks I hold that have increased their dividends in the last quarter of 2011. These stocks are:
AltaGas Ltd (TSX-ALA);
Alimentation Couche Tard (TSX-ATD.B)
Emera Inc. (TSX-EMA)
McCoy (TSX-MCB)
Toronto Dominion Bank (TSX-TD)
Toromont Industries Ltd. (TSX-TIH)
AltaGas Ltd changed from an income trust in 2010 and reduced their dividends by some 38%. In 2011 they made their first increase after this change. The dividend was increased by 4.5% in the 4th quarter of 2011. Prior to the change from an income trust this company had a habit of yearly dividend increases. Current dividend yield is good at 4.34%.
For my last blog entries on this stock in April 2011, click here or here.
Alimentation Couche Tard has a habit of yearly increasing their dividends. The 5 year growth in dividends is 12.5% per year. In the 4th quarter they increased their dividends by 20%. This is the second increase for 2011. However, the dividend yield is low on this stock at 1%.
For my last blog entries on this stock in August 2011, click here or here.
Emera Inc. also increases their dividend yearly, and increases over the past 5 years were at 5.5% per year. The 5 year median dividend yield was 4.4%. Their dividend increase for 2011 occurred in the last quarter of 2011 and was for 3.8%.
For my last blog entries on this stock in June 2011, click here or here.
McCoy Corp is a rather risky small cap stock that pays dividends. I used it to soak up the small amount of cash I had left in the TFSA after my main purchase. Dividends are a little inconsistent as they stopped them entirely in 2010. It was a prudent move on their part not to pay dividends they could not afford. However, with the dividend increases in the last quarter of 2011, dividends are the highest they have ever been. Dividends are currently at a great yield of 5.1%.
For my last blog entry on this stock in May 2011, click here.
Toromont Industries Ltd. had a dividend increase of 10%. If you look at some charts, the stock seemed to fall off a cliff in June and decreased their dividends. However what happened was that they spun off Enerflex. Their dividends were not decreased if you held on to Enerflex. (Personally I was not interested in holding as a stock and have sold off the shares I received.)
For my last blog entries on this stock in March 2011, click here or here.
Toronto Dominion Bank ended their last financial year of October 2011 with another dividend increase. This is the second increase for this bank in that financial year. This last increase was for 3%. The total increase in dividends for this last financial year was 11.5%. The current yield for TD is 3.56%. Before this latest crisis, TD had a good track record of dividend increases.
For my last blog entries on this stock in December 2011, click here or here.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, January 9, 2012
Automodular Corp.
If you have a Tax Free Savings Account (TFSA), and everyone should, you will find that you have bits of money in this account that is not doing much for you. This is because you can invest a maximum of $5,000 a year and this is not much. After you bought the stock you want using your yearly deposit, there will be money left over. Also, if you are buying dividend paying stock, you will have dividends.
There are several ways of handling this. One way is to use DRIPs, where you use the dividends to buy more shares in your company. For a review of this see My Own Adviser’s write up on this subject at Dividend Ninja and his site.
DRIPs are a good idea, but I have been there and done that. I used DRIPs to build up shares in my stocks when I first started to invest. I had to keep track of the Adjusted Cost Basis (ACB) of my stocks and I ended up with odd number of shares in my stocks that are harder to sell. It wasn’t particularly fun. It was rather boring, but it also was profitable for me.
What I do now is invest in some dividend paying small cap, like this stock. I just bought this stock (TSX-AM), for my TFSA. This is a risky stock in several ways. It is a small cap so it will not be traded much or in good volumes. It is dependent on one large company as a customer and that is Ford. However, investing in such stock can be a lot more fun in soaking up your bits of cash than doing other things.
This is a small cap that got hammered in the 2000 recession. This happened to a lot of small caps. This stock has slowly been coming back. A lot of small caps have never recovered. Dividends have been an on and off affair for this stock for a while. They issued no dividends from 2004 to 2009. Then they did a special dividend in 2010. They restarted dividends in 2011 and now have full quarterly dividends.
The dividend rate is current great at 9%. In the last couple of years, dividend income has been a big part of the return. Beside the great dividend, the next great think about this stock is the debt ratios. The current Liquidity Ratio is 2.60 and the Asset/Liability Ratio is 3.71. For these ratios, you are looking for ones at or above 1.50. The current Leverage and Debt/Equity Ratios are also very good, with current ones at 1.37 and 0.37, respectively.
As far as growth goes it was mixed in 2010 with Revenues and Cash Flows up smartly, but the EPS was negative. So far in 2011, revenues are down a bit and cash flow is up a bit, but the real winner is a better EPS than this company has had for some time. They are also trying to get other customers rather than just relying on Ford Oakville plant.
The 5 year median low and high Price/Earnings Ratios are 1.18 and 3.98. These are very low ratios. Mostly this is because there were a number of years with negative earnings. The current P/E ratio of 4.11 is also very low. The yield has always been high on this stock, but even for this stock, a 9% yield is high, but it has been up in this neighborhood before. However, the median yield when it was last paying dividends was 6.3%.
The 5 year median Price/Book Value is low at just 0.97. That is a book value higher than the stock price. The current one of 1.19 is higher, but it is still, in absolute terms low. I get a Graham Price of $4.35. This is 49% above the current stock price. This in itself shows a good stock price. However, it has been better, but the median difference between the Graham Price and Stock price is the stock price 26% lower. So, on a relatively basis, the stock price is good.
In any event, the current stock price of $2.22 seems low.
Needless to say, there are not many analysts following this stock. I found one who said it was a buy because the shares are cheap given the company's earnings and dividends. He thinks it will be a market beater in 2012. He said it was also a Buy because it is debt-free. Automodular should be bought for long term gains and dividends. However, it is also risky because of limited customers.
It is interesting who owns this stock. The CEO owns some 21% of the shares. There are 3 institutions that hold 44% of the shares. Two of these are The Bank of Nova Scotia and Bissett Investment Management (of Franklin Templeton Investments Corp).
See a G&M article on this company dated April 2011.
Automodular Corporation is a supplier of sub-assembly, sequencing and transportation services to the automotive industry - Ford's Oakville Assembly Plant and the renewable energy industry. The Company has three operating facilities. Its web site is here Automodular. See my spreadsheet at am.htm.
I follow a number of these small cap stocks. They include:
Pulse Seismic (TSX-PSD)
TECSYS Inc (TSX-TCS)
Wi-Lan (TSX-WIN)
McCoy (TSX-MCB)
EnerCare (TSX-ECI)
I own TECSYS and McCoy currently. See my site stocks followed to look up my reviews on these stocks.
So how well have I done on this. The first stock I bought was Matrikon Inc. This was dividend paying small Tech cap. One problem with small cap tech stocks is that they can be bought out if successful. I made two purchases on this stock, one in 2009 and one in 2010 totaling $1,047.98. I had to sell because of a buy out in June 2010. My total return was $1,822.01 a 74% increase in value.
The next stock I bought was Pareto Corp. This was to replace Matrikon and then a separate purchase in January 2011. Total purchase was $3,007.98. Total return on this stock was $4,659.01 when I was forced to sell in buyout on February 2011. This was a 55% increase in value.
Next I used some of the money to buy Davis and Henderson Corp (TSX-DH) and what was left over ($403.99) and some extra money in May 2011($412.99) and a total of $816.98 to buy McCoy Corp (MCB) as a filler stock. The value of this stock is currently at $655. This 20% decrease in value. (I, of course, expect this to do better in the future. I didn’t buy more this time as I only have $274.19 in the account, the MCB is going currently at $3.20 a share.)
I was reading a report on Automodular Corp and decided to try it.
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. See my website for stocks followed and investment notes. Follow me on twitter.
There are several ways of handling this. One way is to use DRIPs, where you use the dividends to buy more shares in your company. For a review of this see My Own Adviser’s write up on this subject at Dividend Ninja and his site.
DRIPs are a good idea, but I have been there and done that. I used DRIPs to build up shares in my stocks when I first started to invest. I had to keep track of the Adjusted Cost Basis (ACB) of my stocks and I ended up with odd number of shares in my stocks that are harder to sell. It wasn’t particularly fun. It was rather boring, but it also was profitable for me.
What I do now is invest in some dividend paying small cap, like this stock. I just bought this stock (TSX-AM), for my TFSA. This is a risky stock in several ways. It is a small cap so it will not be traded much or in good volumes. It is dependent on one large company as a customer and that is Ford. However, investing in such stock can be a lot more fun in soaking up your bits of cash than doing other things.
This is a small cap that got hammered in the 2000 recession. This happened to a lot of small caps. This stock has slowly been coming back. A lot of small caps have never recovered. Dividends have been an on and off affair for this stock for a while. They issued no dividends from 2004 to 2009. Then they did a special dividend in 2010. They restarted dividends in 2011 and now have full quarterly dividends.
The dividend rate is current great at 9%. In the last couple of years, dividend income has been a big part of the return. Beside the great dividend, the next great think about this stock is the debt ratios. The current Liquidity Ratio is 2.60 and the Asset/Liability Ratio is 3.71. For these ratios, you are looking for ones at or above 1.50. The current Leverage and Debt/Equity Ratios are also very good, with current ones at 1.37 and 0.37, respectively.
As far as growth goes it was mixed in 2010 with Revenues and Cash Flows up smartly, but the EPS was negative. So far in 2011, revenues are down a bit and cash flow is up a bit, but the real winner is a better EPS than this company has had for some time. They are also trying to get other customers rather than just relying on Ford Oakville plant.
The 5 year median low and high Price/Earnings Ratios are 1.18 and 3.98. These are very low ratios. Mostly this is because there were a number of years with negative earnings. The current P/E ratio of 4.11 is also very low. The yield has always been high on this stock, but even for this stock, a 9% yield is high, but it has been up in this neighborhood before. However, the median yield when it was last paying dividends was 6.3%.
The 5 year median Price/Book Value is low at just 0.97. That is a book value higher than the stock price. The current one of 1.19 is higher, but it is still, in absolute terms low. I get a Graham Price of $4.35. This is 49% above the current stock price. This in itself shows a good stock price. However, it has been better, but the median difference between the Graham Price and Stock price is the stock price 26% lower. So, on a relatively basis, the stock price is good.
In any event, the current stock price of $2.22 seems low.
Needless to say, there are not many analysts following this stock. I found one who said it was a buy because the shares are cheap given the company's earnings and dividends. He thinks it will be a market beater in 2012. He said it was also a Buy because it is debt-free. Automodular should be bought for long term gains and dividends. However, it is also risky because of limited customers.
It is interesting who owns this stock. The CEO owns some 21% of the shares. There are 3 institutions that hold 44% of the shares. Two of these are The Bank of Nova Scotia and Bissett Investment Management (of Franklin Templeton Investments Corp).
See a G&M article on this company dated April 2011.
Automodular Corporation is a supplier of sub-assembly, sequencing and transportation services to the automotive industry - Ford's Oakville Assembly Plant and the renewable energy industry. The Company has three operating facilities. Its web site is here Automodular. See my spreadsheet at am.htm.
I follow a number of these small cap stocks. They include:
Pulse Seismic (TSX-PSD)
TECSYS Inc (TSX-TCS)
Wi-Lan (TSX-WIN)
McCoy (TSX-MCB)
EnerCare (TSX-ECI)
I own TECSYS and McCoy currently. See my site stocks followed to look up my reviews on these stocks.
So how well have I done on this. The first stock I bought was Matrikon Inc. This was dividend paying small Tech cap. One problem with small cap tech stocks is that they can be bought out if successful. I made two purchases on this stock, one in 2009 and one in 2010 totaling $1,047.98. I had to sell because of a buy out in June 2010. My total return was $1,822.01 a 74% increase in value.
The next stock I bought was Pareto Corp. This was to replace Matrikon and then a separate purchase in January 2011. Total purchase was $3,007.98. Total return on this stock was $4,659.01 when I was forced to sell in buyout on February 2011. This was a 55% increase in value.
Next I used some of the money to buy Davis and Henderson Corp (TSX-DH) and what was left over ($403.99) and some extra money in May 2011($412.99) and a total of $816.98 to buy McCoy Corp (MCB) as a filler stock. The value of this stock is currently at $655. This 20% decrease in value. (I, of course, expect this to do better in the future. I didn’t buy more this time as I only have $274.19 in the account, the MCB is going currently at $3.20 a share.)
I was reading a report on Automodular Corp and decided to try it.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, January 6, 2012
Canada Bread Co
I do not own this stock (TSX-CBY). I started to follow this stock some years ago because it was recommended by MPL Communications. You can see some of their advice at their site at Advice for Investors.
I had not really thought of this stock as a dividend paying stock as they had not changed their dividends since 1991. However, mid 2011, dividends suddenly spiked some 233%. Yes, that is right; they were increased by 233%. However dividends remain low with a dividend yield of just 1.8% and Dividend Payout Ratios at 16.5% of earnings and around 10% of Cash Flow. This is a consumer staple stock. These stocks tend to have low dividends, but it is hardly a dividend paying stock if it takes 20 years to raise their dividends. Another problem with this stock is that it owned, almost 90% by Maple Leaf Foods.
In November of 2011, The Investment Reporter, an MPL Communications newsletter, said this stock was a good buy for long term gains and dividends. This stock is down over the past 5 years, as are a lot of stocks. However, over the past 10 years ending in 2011, the total return on this stock is up 8.24% per year, with the dividend portion of this return at .9% per year.
As far as growth goes, the 10 year figures are all better than the 5 year ones. Revenue per shares is up 7.4% and 13.5% per year over the past 5 and 10 years. Earnings per Share are up 11.6% per year over the past 10 years, but are down 4% per year over the past 5 years.
Cash Flow is up in the same manner as the Revenue per shares. Book Value is up 8% and 11% per year over the past 5 and 10 years. However, Book Value has decreased by 15% between the end of 2010 and the third quarter of 2011, mainly due to new IFRS accounting rules.
What about the current stock price? The 5 year median high and low Price/Earnings ratios are 13.33 and 20.91. The current stock price of $43.01 looks low considering it has a P/E Ratio of just 12.47. The low and median difference between the Graham Price and the stock price is the stock price being 9.8% lower and 13% higher. So with a Graham Price of $45.13 the stock price at 4.7% lower looks good also.
I get a 10 year median Price/Book Value Ratio of 2.01. The current one at 1.66 is 82% of the 10 year median price and points to a good current stock price. This is in spite of the fact that the Book Value has gone down 15% because of the new accounting rules. No need to look at relative dividend yield, as yield is relatively high due to the recent big increase.
There is no insider trading over the past year. Maple Leaf Foods own 90% of the shares. Insiders all seem to hold a few thousand shares each. There are also some 5 institutions that hold 2% of the outstanding shares. There has been no buying or selling by these institutions over the past 3 months.
Not surprisingly, I can only find one analyst that follows this stock. The analyst’s recommendation is a Buy. A 12 months stock price of $54 is given. An analyst commented on this stock in October 2011, saying it was a buy because it is a stable business in uncertain times. He also suggested by Maple Leaf could possible take over the rest of the shares they do not own. However, this has been mentioned over the past few years and nothing has occurred.
There is a fairly recent blog entry on this stock at Canadian Dividend Stock. See blog.
Canada Bread is a leading manufacturer and marketer of value-added flour based products, including fresh bread, rolls, bagels and sweet goods, frozen partially baked or par-baked breads and bagels, and specialty pasta and sauces. The Company markets products under a number of leading brand names, including Dempster’s, Olafson’s, POM, Ben’s and Olivieri. Canada Bread has operations in Canada, the United States and the United Kingdom. The Company is 89.8% owned by Maple Leaf Foods Inc. Its web site is here Canada Bread. See my spreadsheet at cby.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
I had not really thought of this stock as a dividend paying stock as they had not changed their dividends since 1991. However, mid 2011, dividends suddenly spiked some 233%. Yes, that is right; they were increased by 233%. However dividends remain low with a dividend yield of just 1.8% and Dividend Payout Ratios at 16.5% of earnings and around 10% of Cash Flow. This is a consumer staple stock. These stocks tend to have low dividends, but it is hardly a dividend paying stock if it takes 20 years to raise their dividends. Another problem with this stock is that it owned, almost 90% by Maple Leaf Foods.
In November of 2011, The Investment Reporter, an MPL Communications newsletter, said this stock was a good buy for long term gains and dividends. This stock is down over the past 5 years, as are a lot of stocks. However, over the past 10 years ending in 2011, the total return on this stock is up 8.24% per year, with the dividend portion of this return at .9% per year.
As far as growth goes, the 10 year figures are all better than the 5 year ones. Revenue per shares is up 7.4% and 13.5% per year over the past 5 and 10 years. Earnings per Share are up 11.6% per year over the past 10 years, but are down 4% per year over the past 5 years.
Cash Flow is up in the same manner as the Revenue per shares. Book Value is up 8% and 11% per year over the past 5 and 10 years. However, Book Value has decreased by 15% between the end of 2010 and the third quarter of 2011, mainly due to new IFRS accounting rules.
What about the current stock price? The 5 year median high and low Price/Earnings ratios are 13.33 and 20.91. The current stock price of $43.01 looks low considering it has a P/E Ratio of just 12.47. The low and median difference between the Graham Price and the stock price is the stock price being 9.8% lower and 13% higher. So with a Graham Price of $45.13 the stock price at 4.7% lower looks good also.
I get a 10 year median Price/Book Value Ratio of 2.01. The current one at 1.66 is 82% of the 10 year median price and points to a good current stock price. This is in spite of the fact that the Book Value has gone down 15% because of the new accounting rules. No need to look at relative dividend yield, as yield is relatively high due to the recent big increase.
There is no insider trading over the past year. Maple Leaf Foods own 90% of the shares. Insiders all seem to hold a few thousand shares each. There are also some 5 institutions that hold 2% of the outstanding shares. There has been no buying or selling by these institutions over the past 3 months.
Not surprisingly, I can only find one analyst that follows this stock. The analyst’s recommendation is a Buy. A 12 months stock price of $54 is given. An analyst commented on this stock in October 2011, saying it was a buy because it is a stable business in uncertain times. He also suggested by Maple Leaf could possible take over the rest of the shares they do not own. However, this has been mentioned over the past few years and nothing has occurred.
There is a fairly recent blog entry on this stock at Canadian Dividend Stock. See blog.
Canada Bread is a leading manufacturer and marketer of value-added flour based products, including fresh bread, rolls, bagels and sweet goods, frozen partially baked or par-baked breads and bagels, and specialty pasta and sauces. The Company markets products under a number of leading brand names, including Dempster’s, Olafson’s, POM, Ben’s and Olivieri. Canada Bread has operations in Canada, the United States and the United Kingdom. The Company is 89.8% owned by Maple Leaf Foods Inc. Its web site is here Canada Bread. See my spreadsheet at cby.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, January 5, 2012
Wajax Corp
First of all, I have to admit that I did not cover all the stocks that I follow in 2011. I guess my pace was too slow. So, until the annual statements for December 2011 come in on the stocks that I own, I will pick up the pace and review one per day.
The first one I want to talk about is Wajax Corp. I have not previously followed this stock and I do not own this stock (TSX-WJX). However, TD Waterhouse put out a report on good dividend paying stocks to own. This was a stock they named. I had not heard of it before, so I decided to investigate it. TD reports is at TD Waterhouse.
This company was an income trust under Wajax Income Fund (WJX.UN). When they decided to switch to a corporation, the dividend was decreased almost 60%. This was in 2009. The dividend was held level in 2010 and since 2011 they have been increasing their dividends. They did 2 dividend increases in 2011. The first was for 20% and the second was for 11%. I think that this bodes well for the futures as far as dividends go, although the 5 year grown in dividends is a negative 7% per year.
The Dividend Payout Ratios over the past 5 years ending in 2011 have a median value of 90% for earnings and 65% for Cash Flow. However, these values are expected to be around 57% and 65% respectively for 2011 and then 65% and 82% respectively for 2012. Lots of companies decreased dividends when they were no longer income trust companies. They had to, to bring their DPRs into line. (See my site for information on Dividend Payout Ratios).
As far as total return goes, this company had returns at 13% and 39% per year over the past 5 and 10 years. The dividend portion of these returns attributable to dividends was 10% and 15% per year. That means that over the past 5 and 10 years 97% and 41% of the return was in dividends. This is likely to be different in the future because this company is now a corporation.
For other growth rates, the last annual statement is dated December 2010. Other growth rates were not as good as dividends and total returns. The growth in revenue per share was basically 0%. Analysts expect the growth for revenues per share to be a healthy 21% for 2011.
Earnings per share growth have been much better at 10% and 22% per year over the past 5 and 10 years. EPS growth is expected to be around 13.5% for 2011. Cash Flow per share has been fairly good at 7.4% and 9% over the past 5 and 10 years. Unfortunately, analysts feel that CF will be lower this year by almost 19%. Usually this close to the annual statement time analysts estimates tend to get more accurate, but they have been known to far off the mark also.
Book Value per share has not grown over the past 5 and 10 years. BV does not tend to grow under income trust companies as they pay too much in distributions. However, BV grew 12% from the end of 2010 to September 2011.
Now I should go on to look at the stock price. The 5 year low and high median Price/Earnings Ratios are 5.82 and 10.89. The current P/E of 10.73 would look high relatively speaking, but the P/E ratios on this stock are quite low and 10.73 is not a high P/E in absolute terms.
I get a current Graham Price of $33.56. The stock price of $39.93 is some 18% higher. On this stock the high difference between the Graham Price and the stock price is the stock price being some 3.5% lower. By this measure the stock price is high. Ideally, a good stock price is at or below the Graham Price, so whatever way you look at this, the stock price seems high on this measure.
I get a 10 year Price/Book Value Ratio of 1.76 and the current one is 2.95, a value some 68% higher and this would point to a rather high stock price. Although the current dividend yield at 6% is good, the 5 year median dividend yield is 12.5%. By this measure, the stock price is high. However, when companies go from income trusts to corporations, it is expected that the dividend yields would go lower.
As far as insider trading goes, there has been a minimal amount of insider buying over the past year, but so small as to not say much to us. There was been no insider selling over the past year. There are 33 institutions that hold 22% of the shares of this company. Over the past 3 months there was been some buying and selling and these institutions have minimally increased their stake in this company (a less than a 1% increase).
When I look at analysts’ recommendations, I see Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. One Buy recommendations comes with a 12 month stock price of $51. A consensus 12 months stock price is around $46. One Buy recommendation says they feel that the P/E Ratio for this stock should be 14.5, which is an reasonable assumption.
This is an Industrial Products stock and would have a medium risk level. A number of analysts with buy recommendations mention the good dividend yield. One analyst mentions the good balance sheet. The current debt Ratios are certainly good. The Liquidity Ratio is 1.76 (although the 5 year median on this ratio is lower at 1.69. The Asset/Liability Ratio is 1.62. The current Leverage and Debt/Equity Ratios at 2.60 and 1.60 are also good.
At the moment I am not looking to buy any stock, but this stock certainly looks good and I can see why the TD Waterhouse put it on a good dividend paying stock list.
There was also an article on this stock in the G&M in October 2011.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization’s customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax. See my spreadsheet at wjx.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
The first one I want to talk about is Wajax Corp. I have not previously followed this stock and I do not own this stock (TSX-WJX). However, TD Waterhouse put out a report on good dividend paying stocks to own. This was a stock they named. I had not heard of it before, so I decided to investigate it. TD reports is at TD Waterhouse.
This company was an income trust under Wajax Income Fund (WJX.UN). When they decided to switch to a corporation, the dividend was decreased almost 60%. This was in 2009. The dividend was held level in 2010 and since 2011 they have been increasing their dividends. They did 2 dividend increases in 2011. The first was for 20% and the second was for 11%. I think that this bodes well for the futures as far as dividends go, although the 5 year grown in dividends is a negative 7% per year.
The Dividend Payout Ratios over the past 5 years ending in 2011 have a median value of 90% for earnings and 65% for Cash Flow. However, these values are expected to be around 57% and 65% respectively for 2011 and then 65% and 82% respectively for 2012. Lots of companies decreased dividends when they were no longer income trust companies. They had to, to bring their DPRs into line. (See my site for information on Dividend Payout Ratios).
As far as total return goes, this company had returns at 13% and 39% per year over the past 5 and 10 years. The dividend portion of these returns attributable to dividends was 10% and 15% per year. That means that over the past 5 and 10 years 97% and 41% of the return was in dividends. This is likely to be different in the future because this company is now a corporation.
For other growth rates, the last annual statement is dated December 2010. Other growth rates were not as good as dividends and total returns. The growth in revenue per share was basically 0%. Analysts expect the growth for revenues per share to be a healthy 21% for 2011.
Earnings per share growth have been much better at 10% and 22% per year over the past 5 and 10 years. EPS growth is expected to be around 13.5% for 2011. Cash Flow per share has been fairly good at 7.4% and 9% over the past 5 and 10 years. Unfortunately, analysts feel that CF will be lower this year by almost 19%. Usually this close to the annual statement time analysts estimates tend to get more accurate, but they have been known to far off the mark also.
Book Value per share has not grown over the past 5 and 10 years. BV does not tend to grow under income trust companies as they pay too much in distributions. However, BV grew 12% from the end of 2010 to September 2011.
Now I should go on to look at the stock price. The 5 year low and high median Price/Earnings Ratios are 5.82 and 10.89. The current P/E of 10.73 would look high relatively speaking, but the P/E ratios on this stock are quite low and 10.73 is not a high P/E in absolute terms.
I get a current Graham Price of $33.56. The stock price of $39.93 is some 18% higher. On this stock the high difference between the Graham Price and the stock price is the stock price being some 3.5% lower. By this measure the stock price is high. Ideally, a good stock price is at or below the Graham Price, so whatever way you look at this, the stock price seems high on this measure.
I get a 10 year Price/Book Value Ratio of 1.76 and the current one is 2.95, a value some 68% higher and this would point to a rather high stock price. Although the current dividend yield at 6% is good, the 5 year median dividend yield is 12.5%. By this measure, the stock price is high. However, when companies go from income trusts to corporations, it is expected that the dividend yields would go lower.
As far as insider trading goes, there has been a minimal amount of insider buying over the past year, but so small as to not say much to us. There was been no insider selling over the past year. There are 33 institutions that hold 22% of the shares of this company. Over the past 3 months there was been some buying and selling and these institutions have minimally increased their stake in this company (a less than a 1% increase).
When I look at analysts’ recommendations, I see Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. One Buy recommendations comes with a 12 month stock price of $51. A consensus 12 months stock price is around $46. One Buy recommendation says they feel that the P/E Ratio for this stock should be 14.5, which is an reasonable assumption.
This is an Industrial Products stock and would have a medium risk level. A number of analysts with buy recommendations mention the good dividend yield. One analyst mentions the good balance sheet. The current debt Ratios are certainly good. The Liquidity Ratio is 1.76 (although the 5 year median on this ratio is lower at 1.69. The Asset/Liability Ratio is 1.62. The current Leverage and Debt/Equity Ratios at 2.60 and 1.60 are also good.
At the moment I am not looking to buy any stock, but this stock certainly looks good and I can see why the TD Waterhouse put it on a good dividend paying stock list.
There was also an article on this stock in the G&M in October 2011.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization’s customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax. See my spreadsheet at wjx.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, January 4, 2012
Calian Technologies Ltd 2
I own this stock (TSX-CTY). This is the stock I am buying for my TFSA purchase this year. This is a small tech stock, so it is riskier than a lot of dividend paying stocks that I own. This stock has very good dividends. The 5 year median dividend yield is 4.42%. The current dividend yield is 5.96%.
When I look at insider trading, I find that over the past year there has been $3M of insider selling, mainly by officers of the company. For this company, it is only the directors that have more stock options than shares. (This is the reverse of most companies giving out stock options.)
There are 9 institutions that own 40% of the shares of this company. Over the past 3 months 1 of these institutions sold a very minor amount of these shares. (What was sold was less than 1% of outstanding shares owned by these institutions.)
I get 5 year median low Price/Earnings Ratio of 8.82 and 5 year median high P/E of 11.82. These are rather low P/E ratios. On a relative basis, the current P/E Ratio of 9.93 shows that the $17.57 stock price is reasonable.
I get a Graham Price of $18.07. The current stock price of $17.57 is 2.9% lower. The median difference between the Graham Price and the stock price is the stock price being 14% higher. The low difference between the Graham Price and the stock price is the stock price being 9.5% lower. So, here again, we have a test that shows that the stock price is reasonable.
The 10 year median Price/Book Value Ratio is 2.23 and the current P/B Ratio is 2.14. The current ratio is 95% of the 10 year median and shows a relatively reasonable stock price. The current dividend yield is 5.96%. This is 34% above the 5 year median dividend yield of 4.42. Ever since they are started to pay dividends, the dividend have been increasing faster than the stock price. This means that the yield has been steadily going up.
The dividend increases have been increasing faster than any other growth including EPS and CF per share growth. At some point this will have to change. It may be doing that now as the first increase of the 2012 financial year was just 4% and the lowest increase this stock has had.
When I look at analysts’ recommendations, there appears to be only one analyst following this stock. The recommendation is a Buy. This makes senses as the price is a reasonable, but not great one. A point to make is that the company gets a lot of business from the government. A number of analysts remarked on the fact that they thought the company was well run. Another point is that this is a small cap stock and it might be a bit illiquid. That is there are not a lot of buyers and sellers and the bit and ask can vary a lot.
I still like this stock and have purchased more for my TFSA account. However, I do not have much invested in this company.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian. See my spreadsheet at cty.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at insider trading, I find that over the past year there has been $3M of insider selling, mainly by officers of the company. For this company, it is only the directors that have more stock options than shares. (This is the reverse of most companies giving out stock options.)
There are 9 institutions that own 40% of the shares of this company. Over the past 3 months 1 of these institutions sold a very minor amount of these shares. (What was sold was less than 1% of outstanding shares owned by these institutions.)
I get 5 year median low Price/Earnings Ratio of 8.82 and 5 year median high P/E of 11.82. These are rather low P/E ratios. On a relative basis, the current P/E Ratio of 9.93 shows that the $17.57 stock price is reasonable.
I get a Graham Price of $18.07. The current stock price of $17.57 is 2.9% lower. The median difference between the Graham Price and the stock price is the stock price being 14% higher. The low difference between the Graham Price and the stock price is the stock price being 9.5% lower. So, here again, we have a test that shows that the stock price is reasonable.
The 10 year median Price/Book Value Ratio is 2.23 and the current P/B Ratio is 2.14. The current ratio is 95% of the 10 year median and shows a relatively reasonable stock price. The current dividend yield is 5.96%. This is 34% above the 5 year median dividend yield of 4.42. Ever since they are started to pay dividends, the dividend have been increasing faster than the stock price. This means that the yield has been steadily going up.
The dividend increases have been increasing faster than any other growth including EPS and CF per share growth. At some point this will have to change. It may be doing that now as the first increase of the 2012 financial year was just 4% and the lowest increase this stock has had.
When I look at analysts’ recommendations, there appears to be only one analyst following this stock. The recommendation is a Buy. This makes senses as the price is a reasonable, but not great one. A point to make is that the company gets a lot of business from the government. A number of analysts remarked on the fact that they thought the company was well run. Another point is that this is a small cap stock and it might be a bit illiquid. That is there are not a lot of buyers and sellers and the bit and ask can vary a lot.
I still like this stock and have purchased more for my TFSA account. However, I do not have much invested in this company.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian. See my spreadsheet at cty.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, January 3, 2012
Calian Technologies Ltd
I own this stock (TSX-CTY). This is the stock I am buying with my TFSA money this year. This is a small tech stock, so it is riskier than a lot of dividend paying stocks that I own. This stock has very good dividends. The 5 year median dividend yield is 4.42%. The current dividend yield is 5.96%.
They have only been paying dividends for 8 years, but the increase to in dividends over this period is 24% per year. The 5 year dividend increase is also 24% per year. They often raise the dividends more than once in a financial period which ends at September 30th each year. For the financial period that will end September 30, 2012, they have already raised the dividends 4%.
Their dividend payout ratios are good. The 5 year median DPR for earnings is 42.5% and for cash flow is 36.3%. However, the DPR ratios for the financial year ending in September 2011, the DPR for earnings was higher at 56.7% and the DPR for CF was 51.3%. This are still good rates.
Total return over the past 5 and 10 years has been great. The total return for the last 5 and 10 years is 16.5% per year and 30% per year, respectively. The portion of this total return attributable to dividends is 6% and 6.7%, respectively. This means that 37% and 22%, respectively, of its total return is attributable to dividends. However, do not forget that future returns may not be as good as past returns.
The worse growth for this company is revenues per share. This has only grown at the rate of 6.3% and 9% per year over the past 5 and 10 years. Earnings are better with growth at 17% per year over the past 5 and 9 years. My longer term earnings are just for 9 years as this company lost money in 2001. This is not surprising as a lot of tech companies had problems in 2000 and 2001.
The growth in cash flow is not bad with the 5 and 9 year growth rate at 14% and 8.8% per year, respectively. (They also had negative cash flow in 2001, so my longer term period is 9 years.) Growth is also good for Book Value with growth for the last 5 and 10 years at 8.7% and 11% per year, respectively.
Return on Equity has generally been quite good. The ROE for the financial year ending in September 2011 is 20.9%. The 5 year median ROE is the same at 20.9%. The ROE based on Comprehensive Income is slightly lower at 18.9% at the end of September 2011. The 5 year median for this ROE is 19.8%. For further information on comprehensive income and it uses, see Wikipedia.
The last thing to talk about today is debt ratios. Debt Ratios are very good on this stock. The current Liquidity Ratio is 2.77. The current Asset/Liability Ratio is 3.27. For these ratios, anything at 1.50 and better is considered good. The current Leverage and Debt/Equity Ratios are correspondingly low (and therefore good) at 1.44 and 0.44 respectively.
There is one negative remark that I like to say and that is I think that they give a lot of stock options out. Also they have an employee stock purchase plan. Under the stock option plan, they issued ¼ of 1% of the outstanding shares this year. Under the stock option plan, they issued 1% of the outstanding shares last year. The number of shares outstanding went down both years as the company purchased shares on the open market. On the other hand, the CEO owns more than $1M in shares in this company.
Tomorrow, I will continue talking about this company, mostly in connection with the current stock price, but also what analysts say about it.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian. See my spreadsheet at cty.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
They have only been paying dividends for 8 years, but the increase to in dividends over this period is 24% per year. The 5 year dividend increase is also 24% per year. They often raise the dividends more than once in a financial period which ends at September 30th each year. For the financial period that will end September 30, 2012, they have already raised the dividends 4%.
Their dividend payout ratios are good. The 5 year median DPR for earnings is 42.5% and for cash flow is 36.3%. However, the DPR ratios for the financial year ending in September 2011, the DPR for earnings was higher at 56.7% and the DPR for CF was 51.3%. This are still good rates.
Total return over the past 5 and 10 years has been great. The total return for the last 5 and 10 years is 16.5% per year and 30% per year, respectively. The portion of this total return attributable to dividends is 6% and 6.7%, respectively. This means that 37% and 22%, respectively, of its total return is attributable to dividends. However, do not forget that future returns may not be as good as past returns.
The worse growth for this company is revenues per share. This has only grown at the rate of 6.3% and 9% per year over the past 5 and 10 years. Earnings are better with growth at 17% per year over the past 5 and 9 years. My longer term earnings are just for 9 years as this company lost money in 2001. This is not surprising as a lot of tech companies had problems in 2000 and 2001.
The growth in cash flow is not bad with the 5 and 9 year growth rate at 14% and 8.8% per year, respectively. (They also had negative cash flow in 2001, so my longer term period is 9 years.) Growth is also good for Book Value with growth for the last 5 and 10 years at 8.7% and 11% per year, respectively.
Return on Equity has generally been quite good. The ROE for the financial year ending in September 2011 is 20.9%. The 5 year median ROE is the same at 20.9%. The ROE based on Comprehensive Income is slightly lower at 18.9% at the end of September 2011. The 5 year median for this ROE is 19.8%. For further information on comprehensive income and it uses, see Wikipedia.
The last thing to talk about today is debt ratios. Debt Ratios are very good on this stock. The current Liquidity Ratio is 2.77. The current Asset/Liability Ratio is 3.27. For these ratios, anything at 1.50 and better is considered good. The current Leverage and Debt/Equity Ratios are correspondingly low (and therefore good) at 1.44 and 0.44 respectively.
There is one negative remark that I like to say and that is I think that they give a lot of stock options out. Also they have an employee stock purchase plan. Under the stock option plan, they issued ¼ of 1% of the outstanding shares this year. Under the stock option plan, they issued 1% of the outstanding shares last year. The number of shares outstanding went down both years as the company purchased shares on the open market. On the other hand, the CEO owns more than $1M in shares in this company.
Tomorrow, I will continue talking about this company, mostly in connection with the current stock price, but also what analysts say about it.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian. See my spreadsheet at cty.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, December 30, 2011
First Capital Realty
I do not own this stock (TSX-FCR). I was asked to take a look at this Real Estate stock, so I am. First of all, most Real Estate stocks are having a hard time. It would be ideal for the dividend increases to at least keep up with inflation. Some are not, including this stock which over the last 5 years has not.
The 5 year growth in dividends is just 1.03% per year. Inflation is currently running around 2% per year. (Long Term inflation tends to be around 3 %.) The reason for this is that there has been no distribution increases since 2008. The 10 year growth in dividends is better at 3.63% per year.
Since Real Estate stocks tend to growth their number of shares outstanding, the values as a shareholder you want to be concerned with is always values per shares. One of the problems I see with this stock is lack of growth in Revenue. The 5 year growth is 4.8% per year. However, the 10 year growth is a negative 6.7% per year. That is revenue is less now than 10 years ago.
The thing with this stock is that it was doing well until 1999 when it lost money. It also had negative earnings in 2000. The stock was severely punished. This is the reason the 10 year total return is at 19.7% per year. The distribution portion of this stock was some 9.2%. The 5 year grow is not as good at 6.7% per year, with distribution contributing 5.7% per year.
Another problem with the stock is that Funds from Operations (FFO) is down slightly over the past 10 years. Over the past 5 years, it is up by 1.6% per year. The thing is that distributions have grown from 61% of FFO to an expected 83% for this year.
Although only 1999 and 2000 had negative earnings, earnings have only gone down over the last 5 and 10 years, by 3.6 and 9.6% per year, respectively. Cash flow is up over the past 5 years at 4.5% per year, but it is down by 6.9% per year over the past 10 years. They only had one year of negative cash flow in 2000. Although, for Real Estate stock, FFO rather than earnings are looked at, cash flow does count.
Book Value has gone down over the past 5 and 10 years. However, this should improve with the new account rules of IFRS. Another thing that might improve, for all Real Estate, stock is earnings. However, the Return on Equity for this stock has been very low with a 5 year ROE of just 3.6%. (Do not forget that this is relatively low for a Real Estate company. It will improve under the new accounting rules, but it will also improve for all other Real Estate companies.)
In comparison, Canadian Real Estate has a 5 year median ROE of 12.9% and RioCan Real Estate has a 5 year median ROE of 9.9%. The ROE on this stock ranges from 3.2% to 7.7% over the past 10 years. Canadian Real Estate ranges from 7.7% to 12.9% over the past 10 years. RioCan range ranges from 6.1% to 14.1% over the past 10 years.
As far as debt ratios go, the Asset/Liability Ratio has often been low with a 5 year median ratio of just 1.42. However, the latest one is better at 1.61. Leverage and Debt/Equity Ratios have been a bit high, but are at probably normal Real Estate stock levels currently at 2.65 and 1.65.
The insider trading report shows some $3M of insider selling and minor insider buying. All insiders but directors have lots more stock options than shares. I cannot find any information on institutions holding this stock, so they probably do not.
The current Price/FFO Ratio is 18. The 10 year median low P/FFO is 10 and the high is 14, so this price looks a bit high. Current distribution yield is 4.63% and the 5 year median is 5.45%, a distribution some 15% higher. So by this measure the price is on the high side.
The Price/Book Value Ratio is currently at 1.38 and this is 80% lower than the 10 year median P/B Ratio of 1.73. This ratio points to a good price, but Book Value has increased significantly (81%) due to new account rules, so not a fair measurement. I cannot really compare stock price to Graham Price as it looks like this will change substantially with new calculations of the EPS under the new accounting rules.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold recommendations with the Buy being the consensus recommendation. One buy recommendation comes with a 12 month stock price of $20. Another has a 12 month stock price of $18. One Analyst says he is cautious on shopping centers because retail sales remain soft, but does own shares in First Capital Realty Inc.
The site Canadian Dividend Stock mentions this company as a top Canadian REIT.
I am not personally interested in this stock as I already have RIOCAN and Canadian Real Estate Investment Trust REITs.
Because of the New Year’s holidays, my next blog entry will be Tuesday, January 3rd, 2012.
First Capital Realty is Canada's leading owner, developer and operator of supermarket and drugstore anchored neighborhood and community shopping centers, located predominantly in growing metropolitan areas. Its web site is here First Capital Realty. See my spreadsheet at fcr.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
The 5 year growth in dividends is just 1.03% per year. Inflation is currently running around 2% per year. (Long Term inflation tends to be around 3 %.) The reason for this is that there has been no distribution increases since 2008. The 10 year growth in dividends is better at 3.63% per year.
Since Real Estate stocks tend to growth their number of shares outstanding, the values as a shareholder you want to be concerned with is always values per shares. One of the problems I see with this stock is lack of growth in Revenue. The 5 year growth is 4.8% per year. However, the 10 year growth is a negative 6.7% per year. That is revenue is less now than 10 years ago.
The thing with this stock is that it was doing well until 1999 when it lost money. It also had negative earnings in 2000. The stock was severely punished. This is the reason the 10 year total return is at 19.7% per year. The distribution portion of this stock was some 9.2%. The 5 year grow is not as good at 6.7% per year, with distribution contributing 5.7% per year.
Another problem with the stock is that Funds from Operations (FFO) is down slightly over the past 10 years. Over the past 5 years, it is up by 1.6% per year. The thing is that distributions have grown from 61% of FFO to an expected 83% for this year.
Although only 1999 and 2000 had negative earnings, earnings have only gone down over the last 5 and 10 years, by 3.6 and 9.6% per year, respectively. Cash flow is up over the past 5 years at 4.5% per year, but it is down by 6.9% per year over the past 10 years. They only had one year of negative cash flow in 2000. Although, for Real Estate stock, FFO rather than earnings are looked at, cash flow does count.
Book Value has gone down over the past 5 and 10 years. However, this should improve with the new account rules of IFRS. Another thing that might improve, for all Real Estate, stock is earnings. However, the Return on Equity for this stock has been very low with a 5 year ROE of just 3.6%. (Do not forget that this is relatively low for a Real Estate company. It will improve under the new accounting rules, but it will also improve for all other Real Estate companies.)
In comparison, Canadian Real Estate has a 5 year median ROE of 12.9% and RioCan Real Estate has a 5 year median ROE of 9.9%. The ROE on this stock ranges from 3.2% to 7.7% over the past 10 years. Canadian Real Estate ranges from 7.7% to 12.9% over the past 10 years. RioCan range ranges from 6.1% to 14.1% over the past 10 years.
As far as debt ratios go, the Asset/Liability Ratio has often been low with a 5 year median ratio of just 1.42. However, the latest one is better at 1.61. Leverage and Debt/Equity Ratios have been a bit high, but are at probably normal Real Estate stock levels currently at 2.65 and 1.65.
The insider trading report shows some $3M of insider selling and minor insider buying. All insiders but directors have lots more stock options than shares. I cannot find any information on institutions holding this stock, so they probably do not.
The current Price/FFO Ratio is 18. The 10 year median low P/FFO is 10 and the high is 14, so this price looks a bit high. Current distribution yield is 4.63% and the 5 year median is 5.45%, a distribution some 15% higher. So by this measure the price is on the high side.
The Price/Book Value Ratio is currently at 1.38 and this is 80% lower than the 10 year median P/B Ratio of 1.73. This ratio points to a good price, but Book Value has increased significantly (81%) due to new account rules, so not a fair measurement. I cannot really compare stock price to Graham Price as it looks like this will change substantially with new calculations of the EPS under the new accounting rules.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold recommendations with the Buy being the consensus recommendation. One buy recommendation comes with a 12 month stock price of $20. Another has a 12 month stock price of $18. One Analyst says he is cautious on shopping centers because retail sales remain soft, but does own shares in First Capital Realty Inc.
The site Canadian Dividend Stock mentions this company as a top Canadian REIT.
I am not personally interested in this stock as I already have RIOCAN and Canadian Real Estate Investment Trust REITs.
Because of the New Year’s holidays, my next blog entry will be Tuesday, January 3rd, 2012.
First Capital Realty is Canada's leading owner, developer and operator of supermarket and drugstore anchored neighborhood and community shopping centers, located predominantly in growing metropolitan areas. Its web site is here First Capital Realty. See my spreadsheet at fcr.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
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