On my other blog I am today writing about going to World Money Show Toronto continue...
I own this stock of Kombat Copper Inc. (TSXV-KBT, 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 Apr 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). The last time I looked my investment in this stock was worth $6.00. It is not worth selling and I am curious what will happen to this stock.
This is the fifth year in a row that this company has had no revenue. Needless to say they have had no profit or cash flow over this period. The company has only had a profit in 2004 and 2007 over the past 10 years. These years were before the reverse takeover. The last two times the company had a positive cash flow was in 2001 and 2007.
The only other thing I should remark on is that they have cash on hand that is equal to $.01 per share. There is not much else to say. I am still tracking this as I am curious about where the company will go.
They are distributing annual financial statements to shareholders, but the latest one on their site is the quarterly reports for 2012. However, they seem to have recent press releases on their side or at least ones dated in 2014. On their site they also have a presentation for investors dated September 2014.
Sound bit for Twitter and StockTwits is: Interesting diversion. See my spreadsheet at kbt.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Kombat Copper Inc. is a publicly traded Canadian exploration and development company. Its core operations are focused on copper resources in Namibia, one of the world's most prospective copper regions, where they have substantial assets in place Its web site is here Kombat.
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. Follow me on Twitter or StockTwits.
Wednesday, October 15, 2014
Tuesday, October 14, 2014
Teck Resources Ltd.
On my other blog I am today writing why the stock market might be treading lower. continue...
I do not own this stock of Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK). I bought this stock in 2008 and sold in 2009. I bought this stock because the company purchased Fording Canadian Coal Trust at exactly the wrong time and got into financial difficulties and the stock price dropped off a cliff as they had to cut dividends. When the stock recovered somewhat in 2009, I sold for a profit.
This stock is currently paying a dividend and has a yield of 5% and a 5 year median dividend yield of 2.29%. It is probably needless for me to say that the stock price has been dropping lately. The 5 and 10 year dividends have fallen 2.1% per year over the past 5 years and have grown at 24.6% per year over the past 10 years.
This company has had different dividend policies over its life, so it is hard to say what they will do in the future. For example, dividends were flat for a long time before they started to increase in 2004. They paid no dividends in 2009 and then restarted them in 2010.
This stock is down some 72% from its high in 2011. For 2014 it is down some 35% so far this year. Their problem really stems from their buying of Fording Coal in 2008. I had bought this stock at the end of 2008 when they last cut their dividend. I held it until mid-2009 and sold for a 240% profit. Of course it went much higher over the next few years, but I had made a profit so that was nice.
The last 2 years have not been very good for this company. Revenue, earnings and cash flow have very little growth over the past 5 years because of this and analysts expect the same for 2014. The 5 year growth for Revenue per Share is 2.8% per year, for EPS is 2.8% per year. For Cash Flow per Share there is a decrease of 9.6% per year.
The Total Return over the past 5 and 10 years is low because of what has happened recently to the stock price. The Total return over the past 5 years is a loss of 10.70% per year and over the past 10 years is an increase at 3.46% per year. The capital losses over the 5 and 10 years are at 13.33% per year and 0.25% per year. The Dividend portion of the total return over the past 5 and 10 years is at 2.62% and 3.71% per year.
The debt ratios are good for this company. However, the Return on Equity has been quite low for the past two years and is expected to be quite low for 2014. The ROE for 2013 was at 5.2%. The ROE on comprehensive income for 2013 was better at 7.1%.
When I look at analysts' recommendations I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus recommendation is a Hold as are most of the recommendations. The 12 month stock price is $27.30. This suggests that analysts expect a strong recovery in this stock as the 12 month stock price would give a total return of 56.58% from today's price of 18.01. The dividend portion of this return would be 5% and the capital gains would be 51.58%.
If you look just at Price/Earnings per Share Ratio, the current ratio is rather high for this stock at 20.94 as the company is not expected to earn much this year. The 2014 EPS estimate is just $0.86 a decrease of 48% from 2013's earnings. The second quarterly financials shows EPS declining.
However, other measures say a very different thing. Take the Graham price, which is at $24.94. The 10 year Price/Graham price Ratios are 0.64, 0.88 and 1.15. The current P/GP Ratio is 0.72. This stock price test suggests that the stock price is reasonable.
The historical high dividend yield is 3.10% and the current dividend yield at 5% is some 61% higher. This stock price test suggests that the stock price is cheap. The Price/Book Value per Share suggests the same thing as the 10 year P/B Ratio is 1.62 and the current P/B Ratio is 0.56 a value some 65% lower.
There is a recent MPL Communications Daily Advice email on this company. It talks about Teck's coal mines being cash-flow positive despite world-wide glut of coal. The Motley Fool thinks it is not worthwhile betting on Teck at this point.
Sound bit for Twitter and StockTwits is: Stock is relatively cheap. This is a volatile resource stock and I believe money can be made in the ups and down of the stock price. However, I do not see this stock as a long term buy. See my spreadsheet at tck.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is here Teck.
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. Follow me on Twitter or StockTwits.
I do not own this stock of Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK). I bought this stock in 2008 and sold in 2009. I bought this stock because the company purchased Fording Canadian Coal Trust at exactly the wrong time and got into financial difficulties and the stock price dropped off a cliff as they had to cut dividends. When the stock recovered somewhat in 2009, I sold for a profit.
This stock is currently paying a dividend and has a yield of 5% and a 5 year median dividend yield of 2.29%. It is probably needless for me to say that the stock price has been dropping lately. The 5 and 10 year dividends have fallen 2.1% per year over the past 5 years and have grown at 24.6% per year over the past 10 years.
This company has had different dividend policies over its life, so it is hard to say what they will do in the future. For example, dividends were flat for a long time before they started to increase in 2004. They paid no dividends in 2009 and then restarted them in 2010.
This stock is down some 72% from its high in 2011. For 2014 it is down some 35% so far this year. Their problem really stems from their buying of Fording Coal in 2008. I had bought this stock at the end of 2008 when they last cut their dividend. I held it until mid-2009 and sold for a 240% profit. Of course it went much higher over the next few years, but I had made a profit so that was nice.
The last 2 years have not been very good for this company. Revenue, earnings and cash flow have very little growth over the past 5 years because of this and analysts expect the same for 2014. The 5 year growth for Revenue per Share is 2.8% per year, for EPS is 2.8% per year. For Cash Flow per Share there is a decrease of 9.6% per year.
The Total Return over the past 5 and 10 years is low because of what has happened recently to the stock price. The Total return over the past 5 years is a loss of 10.70% per year and over the past 10 years is an increase at 3.46% per year. The capital losses over the 5 and 10 years are at 13.33% per year and 0.25% per year. The Dividend portion of the total return over the past 5 and 10 years is at 2.62% and 3.71% per year.
The debt ratios are good for this company. However, the Return on Equity has been quite low for the past two years and is expected to be quite low for 2014. The ROE for 2013 was at 5.2%. The ROE on comprehensive income for 2013 was better at 7.1%.
When I look at analysts' recommendations I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus recommendation is a Hold as are most of the recommendations. The 12 month stock price is $27.30. This suggests that analysts expect a strong recovery in this stock as the 12 month stock price would give a total return of 56.58% from today's price of 18.01. The dividend portion of this return would be 5% and the capital gains would be 51.58%.
If you look just at Price/Earnings per Share Ratio, the current ratio is rather high for this stock at 20.94 as the company is not expected to earn much this year. The 2014 EPS estimate is just $0.86 a decrease of 48% from 2013's earnings. The second quarterly financials shows EPS declining.
However, other measures say a very different thing. Take the Graham price, which is at $24.94. The 10 year Price/Graham price Ratios are 0.64, 0.88 and 1.15. The current P/GP Ratio is 0.72. This stock price test suggests that the stock price is reasonable.
The historical high dividend yield is 3.10% and the current dividend yield at 5% is some 61% higher. This stock price test suggests that the stock price is cheap. The Price/Book Value per Share suggests the same thing as the 10 year P/B Ratio is 1.62 and the current P/B Ratio is 0.56 a value some 65% lower.
There is a recent MPL Communications Daily Advice email on this company. It talks about Teck's coal mines being cash-flow positive despite world-wide glut of coal. The Motley Fool thinks it is not worthwhile betting on Teck at this point.
Sound bit for Twitter and StockTwits is: Stock is relatively cheap. This is a volatile resource stock and I believe money can be made in the ups and down of the stock price. However, I do not see this stock as a long term buy. See my spreadsheet at tck.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is here Teck.
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. Follow me on Twitter or StockTwits.
Friday, October 10, 2014
Linamar Corporation 2
I do not own this stock of Linamar Corporation (TSX-LNR, OTC-LIMAF). I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. In 2008 I read an article that recommended this company as a dividend stock with good value and so I started to follow this stock.
When I look at insider trading for the past year, I find $1.5M of insider buying and $0.8M of insider selling with $0.7M of net insider buying. These are very small amounts. There is some insider ownership with the CEO having shares worth around $169M and 5.9% of outstanding shares and the Chairman owning shares worth around $675.6M and 23.6% of outstanding shares.
In 2013 outstanding shares were increased by 56,000 or 0.09% for stock options. The book value of these options was at $1.2M and this number of shares was worth around 2.5M at the end of 2013. These are a very low numbers for stock options.
The 5 year low, median and high median Price/Earnings per Share Ratios were 6.45, 9.50 and 12.55. These are close to the 10 year corresponding values of 7.99, 9.95 and 12.31. The current P/E Ratio is 12.10 based on a stock price of $53.50 and 2014 EPS estimate of $4.42. This stock price test suggests that the stock price is relatively reasonable, but towards to high end of that range.
I get a Graham Price of $48.06. The 10 year low, median and high median Price/Graham Price Ratios are 0.59, 0.76 and 0.95. The current P/GP Ratio is 1.11. This stock price test suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.29 and the current P/B Ratio at 2.30 is some 79% higher. This is based on a BVPS of $23.22 and a stock price of $53.50. This stock price test suggests that the stock price is relatively expensive.
I get 5 year median dividend yield of 1.42% and this is some 47% higher than the current dividend yield of 0.75%. Also, the historical average and median dividend yields are 1.47% and 1.25% which are 49% and 40% higher than the current dividend yield of 0.75%. All this suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I get Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a buy. The 12 month consensus stock price is $71.30. This implies a total return of 34.02% with 33.27% from capital gains and 0.75% from dividends.
Sound bit for Twitter and StockTwits is: Buy when it crashes, relatively expensive now. This is an industrial stock and it has its ups and downs. If you want to make a decent dividend yield on your purchase price, buy this stock when it is at a low. Also, I would not buy any dividend growth stock with a dividend yield less than 1% as it would take too long to get to a decent dividend yield on your original purchase. See my spreadsheet at lnr.htm.
This is the second of two parts. The first part was posted on Thursday, October 09, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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. Follow me on Twitter or StockTwits.
When I look at insider trading for the past year, I find $1.5M of insider buying and $0.8M of insider selling with $0.7M of net insider buying. These are very small amounts. There is some insider ownership with the CEO having shares worth around $169M and 5.9% of outstanding shares and the Chairman owning shares worth around $675.6M and 23.6% of outstanding shares.
In 2013 outstanding shares were increased by 56,000 or 0.09% for stock options. The book value of these options was at $1.2M and this number of shares was worth around 2.5M at the end of 2013. These are a very low numbers for stock options.
The 5 year low, median and high median Price/Earnings per Share Ratios were 6.45, 9.50 and 12.55. These are close to the 10 year corresponding values of 7.99, 9.95 and 12.31. The current P/E Ratio is 12.10 based on a stock price of $53.50 and 2014 EPS estimate of $4.42. This stock price test suggests that the stock price is relatively reasonable, but towards to high end of that range.
I get a Graham Price of $48.06. The 10 year low, median and high median Price/Graham Price Ratios are 0.59, 0.76 and 0.95. The current P/GP Ratio is 1.11. This stock price test suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.29 and the current P/B Ratio at 2.30 is some 79% higher. This is based on a BVPS of $23.22 and a stock price of $53.50. This stock price test suggests that the stock price is relatively expensive.
I get 5 year median dividend yield of 1.42% and this is some 47% higher than the current dividend yield of 0.75%. Also, the historical average and median dividend yields are 1.47% and 1.25% which are 49% and 40% higher than the current dividend yield of 0.75%. All this suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I get Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a buy. The 12 month consensus stock price is $71.30. This implies a total return of 34.02% with 33.27% from capital gains and 0.75% from dividends.
Sound bit for Twitter and StockTwits is: Buy when it crashes, relatively expensive now. This is an industrial stock and it has its ups and downs. If you want to make a decent dividend yield on your purchase price, buy this stock when it is at a low. Also, I would not buy any dividend growth stock with a dividend yield less than 1% as it would take too long to get to a decent dividend yield on your original purchase. See my spreadsheet at lnr.htm.
This is the second of two parts. The first part was posted on Thursday, October 09, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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. Follow me on Twitter or StockTwits.
Thursday, October 9, 2014
Linamar Corporation
I do not own this stock of Linamar Corporation (TSX-LNR, OTC-LIMAF). I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. In 2008 I read an article that recommended this company as a dividend stock with good value. This stock used to be on the Investment reporter portfolio stock list as an average risk stock. However, it has been taken off this list.
This company raises their dividends infrequently. However, the 5 and 10 year increases are at 5.92% and 7.18% per year, but the current yield is low at just 0.7% and the 5 year median yield is also low, but decent at 1.42%. So this stock has a low yield and moderate increases.
This means that if you bought this stock today, in 15 years you could be making 1.7% on your money or in 20 years be making 2.2% on your money. However, people who bought this stock 5 years ago when it crashed and paid a average price in that year would be earning 4.5% return on their original purchase price.
The Dividend Payout Ratios are very low. The 5 year median DPR for EPS is at 9% and for CFPS at 6.2%. The DPR for 2013 for EPS is at 9% and for CFPS is at 4.4%. The DPRs for 2014 are expected to be roughly the same.
Shareholders have done well over the past 5 and 10 years with total returns at 32.25% and 14.27% per year over these periods. The portion of this return attributable to dividends is at 1.37% and 1.01% per year over these periods. The portion of this return attributable to capital gains is at 30.88% and 13.26% per year over these periods.
Outstanding shares have not really changed over the past 5 or 10 years. Shares are increased for Stock Options and decreased for Buy Backs. There has been good growth in Revenue, Earnings and Cash Flow. It is interesting that in all cases the 5 year running averages growth over the past 5 and 10 years is lower than growth over the past 5 and 10 years. This seems to be because growth in this company is volatile.
The Revenue per Share growth is 9.7% and 10% per year over the past 5 and 10 years. The Revenue per Share growth using 5 year running averages is lower at 6.1% and 8.2% per year.
Earnings per Share growth is at 27.4% and 20% per year over the past 5 and 10 years. However, if you look at EPS growth over the past 5 and 10 years using 5 year running averages the growth is just at 3.4% and 7% per year.
Cash Flow per Share growth is 12% and 11.9% per year over the past 5 and 10 years. CFPS growth over the past 5 and 10 years using 5 year running average is also lower at 5.2% and 7.7% per year.
The debt ratios on this stock are very good. The Liquidity Ratio is at 1.60, the Debt Ratio is at 2.06 and the Leverage and Debt/Equity Ratios at 1.94 and 0.94. This is probably because of insider ownership.
The Return on Equity has been above 10% in 9 of the 10 past years. They had one year of earnings loss in this period. The Return on Equity for 2013 is at 17% with the 5 year median at 11.1%. The ROE on comprehensive income for 2013 was 23.7% and the 5 year median ROE was at 8.1%. Over the past 2 years the ROE on comprehensive income was higher than for net income. This can point to the company's profits being of good quality.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. However, note that dividends are only raised infrequently. Shareholders have done well with this stock, but as for dividends you can see that it really pays to buy when stock is at a good price. I personally will not buy any stock with a dividend yield under 1%. It just takes too long to get a really decent return on your original investment. See my spreadsheet at lnr.htm.
This is the first of two parts. The second part will be posted on Friday, October 10, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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. Follow me on Twitter or StockTwits.
This company raises their dividends infrequently. However, the 5 and 10 year increases are at 5.92% and 7.18% per year, but the current yield is low at just 0.7% and the 5 year median yield is also low, but decent at 1.42%. So this stock has a low yield and moderate increases.
This means that if you bought this stock today, in 15 years you could be making 1.7% on your money or in 20 years be making 2.2% on your money. However, people who bought this stock 5 years ago when it crashed and paid a average price in that year would be earning 4.5% return on their original purchase price.
The Dividend Payout Ratios are very low. The 5 year median DPR for EPS is at 9% and for CFPS at 6.2%. The DPR for 2013 for EPS is at 9% and for CFPS is at 4.4%. The DPRs for 2014 are expected to be roughly the same.
Shareholders have done well over the past 5 and 10 years with total returns at 32.25% and 14.27% per year over these periods. The portion of this return attributable to dividends is at 1.37% and 1.01% per year over these periods. The portion of this return attributable to capital gains is at 30.88% and 13.26% per year over these periods.
Outstanding shares have not really changed over the past 5 or 10 years. Shares are increased for Stock Options and decreased for Buy Backs. There has been good growth in Revenue, Earnings and Cash Flow. It is interesting that in all cases the 5 year running averages growth over the past 5 and 10 years is lower than growth over the past 5 and 10 years. This seems to be because growth in this company is volatile.
The Revenue per Share growth is 9.7% and 10% per year over the past 5 and 10 years. The Revenue per Share growth using 5 year running averages is lower at 6.1% and 8.2% per year.
Earnings per Share growth is at 27.4% and 20% per year over the past 5 and 10 years. However, if you look at EPS growth over the past 5 and 10 years using 5 year running averages the growth is just at 3.4% and 7% per year.
Cash Flow per Share growth is 12% and 11.9% per year over the past 5 and 10 years. CFPS growth over the past 5 and 10 years using 5 year running average is also lower at 5.2% and 7.7% per year.
The debt ratios on this stock are very good. The Liquidity Ratio is at 1.60, the Debt Ratio is at 2.06 and the Leverage and Debt/Equity Ratios at 1.94 and 0.94. This is probably because of insider ownership.
The Return on Equity has been above 10% in 9 of the 10 past years. They had one year of earnings loss in this period. The Return on Equity for 2013 is at 17% with the 5 year median at 11.1%. The ROE on comprehensive income for 2013 was 23.7% and the 5 year median ROE was at 8.1%. Over the past 2 years the ROE on comprehensive income was higher than for net income. This can point to the company's profits being of good quality.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. However, note that dividends are only raised infrequently. Shareholders have done well with this stock, but as for dividends you can see that it really pays to buy when stock is at a good price. I personally will not buy any stock with a dividend yield under 1%. It just takes too long to get a really decent return on your original investment. See my spreadsheet at lnr.htm.
This is the first of two parts. The second part will be posted on Friday, October 10, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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. Follow me on Twitter or StockTwits.
Wednesday, October 8, 2014
Medtronic Inc. 2
On my other blog I am today writing about possible cheap dividend stocks for October 2014 continue...
I do not own this stock of Medtronic Inc. (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. Also, we just do not have the massive companies in Canada that the US has.
The insider trading record shows just $1.2M of insider selling and no insider buying. This is an extremely small amount of insider selling as compared to the market cap of this company. There is some insider ownership with the Chairman and CEO owning shares worth around $37M and the CFO owning shares worth around $12M.
For the year ending April 2014 outstanding shares were increased by 31M which is around 3.1% of the outstanding shares. This is a lot considering that most company increase outstanding shares for stock options around 0.50%. The corresponding value for 2013 and 2012 were an increase of shares by 10M and 1% and 4M and 0.40%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.91, 12.77 and 14.64. The corresponding 10 year Ratios are higher at 14.04, 19.10 and 21.58. The current P/E Ratio is 16.17 based on a stock price of $64.36 and 2015 EPS estimate of $3.98. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $41.50. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.65 and 2.05. The current P/GP Ratio is at 1.55 based on a stock price of $64.36. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Book Value per Share Ratio is 3.20 and the current P/B Ratio is 3.35 based on BVPS of $19.23 and a stock price of $64.36. The current P/B Ratio is just 4.5% higher than the 10 year P/B Ratio. This stock price test suggests that the stock price is relatively reasonable.
If you look at the 5 year median dividend yield it is 2.46% and the current dividend yield at 1.90% is lower by 23% than the 5 year median dividend yield. This is based on a Dividend of $1.22 and a stock price of $64.36. This suggests that the stock price is relatively expensive.
However, if you look at the historical average dividend yield which is just 1.54% and the historical median dividend yield, which is 0.72%, the story changes a lot. By historical measures of the dividend yield, the current stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation out be a Buy. The 12 month stock price consensus is $73.60. This implies a total return of 16.25% with 1.90% from dividends and 14.36% from capital gains.
Sound bit for Twitter and StockTwits is: Stock price is reasonable. See my spreadsheet at mdt.htm.
This is the second of two parts. The first part was posted on Tuesday, October 07, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic.
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. Follow me on Twitter or StockTwits.
The insider trading record shows just $1.2M of insider selling and no insider buying. This is an extremely small amount of insider selling as compared to the market cap of this company. There is some insider ownership with the Chairman and CEO owning shares worth around $37M and the CFO owning shares worth around $12M.
For the year ending April 2014 outstanding shares were increased by 31M which is around 3.1% of the outstanding shares. This is a lot considering that most company increase outstanding shares for stock options around 0.50%. The corresponding value for 2013 and 2012 were an increase of shares by 10M and 1% and 4M and 0.40%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.91, 12.77 and 14.64. The corresponding 10 year Ratios are higher at 14.04, 19.10 and 21.58. The current P/E Ratio is 16.17 based on a stock price of $64.36 and 2015 EPS estimate of $3.98. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $41.50. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.65 and 2.05. The current P/GP Ratio is at 1.55 based on a stock price of $64.36. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Book Value per Share Ratio is 3.20 and the current P/B Ratio is 3.35 based on BVPS of $19.23 and a stock price of $64.36. The current P/B Ratio is just 4.5% higher than the 10 year P/B Ratio. This stock price test suggests that the stock price is relatively reasonable.
If you look at the 5 year median dividend yield it is 2.46% and the current dividend yield at 1.90% is lower by 23% than the 5 year median dividend yield. This is based on a Dividend of $1.22 and a stock price of $64.36. This suggests that the stock price is relatively expensive.
However, if you look at the historical average dividend yield which is just 1.54% and the historical median dividend yield, which is 0.72%, the story changes a lot. By historical measures of the dividend yield, the current stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation out be a Buy. The 12 month stock price consensus is $73.60. This implies a total return of 16.25% with 1.90% from dividends and 14.36% from capital gains.
Sound bit for Twitter and StockTwits is: Stock price is reasonable. See my spreadsheet at mdt.htm.
This is the second of two parts. The first part was posted on Tuesday, October 07, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, October 7, 2014
Medtronic Inc.
I do not own this stock of Medtronic Inc. (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. Also, we just do not have the massive companies in Canada that the US has.
This is certainly a dividend growth company. The dividend yield is moderate and the growth in dividends is moderate to good. The current dividend yield is 1.88% and the 5 year median dividend yield is 2.46%. The 5 and 10 year dividend growth is at 8.35% and 14.47% per year.
As a Canadian, I am glad I have not been invested in this stock. For the 5 year periods ending in 2005 to the 5 year period ending in 2012, I would have lost money every year in total returns. For the 5 year period ending in 2012 the total return would be 0.56% per year. For the financial year ending in April 2013 I would have finally made some money with a total return of 13.18% per year.
The total returns to date for Canadians is at 12.77% and 2.22% per year over the past 5 and 10 years. The portion of this total return attributable to dividends would be 2% and 1.22% per year. The portion of this total return attributable to capital gains would be 10.77% and 1% per year. This is in CDN$.
The for total returns to date for Americans the 5 and 10 year total return would be at 9.95% and 4.39% per year. The portion of this total return attributable to dividends would be 2.04% and 1.77% per year. The portion of this total return attributable to capital gains would be 7.91% and 2.62% per year. This is in US$.
The stock price hit a high in 2008 and it took until 2014 to surpass this high. This, of course, points out clearly that you have to sure you at least pay a reasonable price for a stock to make any money. If you pay too much you could end up not making any money no matter how good the company is.
The outstanding shares have decreased by 2.3% and 1.9% per year over the past 5 and 10 years. Outstanding shares have increased due to Stock Options and they have decreased due to Buy Backs. Because outstanding shares have decreased, you need to be concerned with growth as well as per share growth. For example you should look at Revenue growth as well as Revenue per Share growth.
Also, the 5 year growth per year for this stock is lower than the 10 years growth per year as far as Revenues go. However, this reverses for Earnings and Cash Flow.
Revenue has grown at 3.1% and 6.5% per year over the past 5 and 10 years in US$. Revenue per Share has grown at 5.5% and 9.2% per year over the past 5 and 10 years in US$.
Earnings or Net Income growth is at 7.2% and 4.6% per year over the past 5 and 10 years in US$. Earnings per Share growth is at 9.4% and 6.6% per year over the past 5 and 10 years in US$.
Cash Flow gr5owth is at 5.6% and 8.7% per year over the past 5 and 10 years in US$. Cash Flow per Share growth is at 8% and 8.2% per year over the past 5 and 10 years in US$.
The Return on Equity has been over 10% each year over the past 10 years. The ROE for 2014 is 15.8% and the 5 year median ROE is at 19.4%. The ROE on comprehensive income for 2014 is just slightly lower at 15.2% and the 5 year median is 18.5%.
The debt ratios are very good on this stock. The Liquidity Ratio is 3.82 for 2014. The Debt Ratio is 2.05 for 2014 and the Leverage and Debt/Equity Ratios are 1.95 and 0.95 for 2014.
Sound bit for Twitter and StockTwits is: US Health Care dividend growth stock. See my spreadsheet at mdt.htm.
This is the first of two parts. The second part will be posted on Wednesday, October 8, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic.
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. Follow me on Twitter or StockTwits.
This is certainly a dividend growth company. The dividend yield is moderate and the growth in dividends is moderate to good. The current dividend yield is 1.88% and the 5 year median dividend yield is 2.46%. The 5 and 10 year dividend growth is at 8.35% and 14.47% per year.
As a Canadian, I am glad I have not been invested in this stock. For the 5 year periods ending in 2005 to the 5 year period ending in 2012, I would have lost money every year in total returns. For the 5 year period ending in 2012 the total return would be 0.56% per year. For the financial year ending in April 2013 I would have finally made some money with a total return of 13.18% per year.
The total returns to date for Canadians is at 12.77% and 2.22% per year over the past 5 and 10 years. The portion of this total return attributable to dividends would be 2% and 1.22% per year. The portion of this total return attributable to capital gains would be 10.77% and 1% per year. This is in CDN$.
The for total returns to date for Americans the 5 and 10 year total return would be at 9.95% and 4.39% per year. The portion of this total return attributable to dividends would be 2.04% and 1.77% per year. The portion of this total return attributable to capital gains would be 7.91% and 2.62% per year. This is in US$.
The stock price hit a high in 2008 and it took until 2014 to surpass this high. This, of course, points out clearly that you have to sure you at least pay a reasonable price for a stock to make any money. If you pay too much you could end up not making any money no matter how good the company is.
The outstanding shares have decreased by 2.3% and 1.9% per year over the past 5 and 10 years. Outstanding shares have increased due to Stock Options and they have decreased due to Buy Backs. Because outstanding shares have decreased, you need to be concerned with growth as well as per share growth. For example you should look at Revenue growth as well as Revenue per Share growth.
Also, the 5 year growth per year for this stock is lower than the 10 years growth per year as far as Revenues go. However, this reverses for Earnings and Cash Flow.
Revenue has grown at 3.1% and 6.5% per year over the past 5 and 10 years in US$. Revenue per Share has grown at 5.5% and 9.2% per year over the past 5 and 10 years in US$.
Earnings or Net Income growth is at 7.2% and 4.6% per year over the past 5 and 10 years in US$. Earnings per Share growth is at 9.4% and 6.6% per year over the past 5 and 10 years in US$.
Cash Flow gr5owth is at 5.6% and 8.7% per year over the past 5 and 10 years in US$. Cash Flow per Share growth is at 8% and 8.2% per year over the past 5 and 10 years in US$.
The Return on Equity has been over 10% each year over the past 10 years. The ROE for 2014 is 15.8% and the 5 year median ROE is at 19.4%. The ROE on comprehensive income for 2014 is just slightly lower at 15.2% and the 5 year median is 18.5%.
The debt ratios are very good on this stock. The Liquidity Ratio is 3.82 for 2014. The Debt Ratio is 2.05 for 2014 and the Leverage and Debt/Equity Ratios are 1.95 and 0.95 for 2014.
Sound bit for Twitter and StockTwits is: US Health Care dividend growth stock. See my spreadsheet at mdt.htm.
This is the first of two parts. The second part will be posted on Wednesday, October 8, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic.
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. Follow me on Twitter or StockTwits.
Monday, October 6, 2014
HNZ Group Inc.
On my other blog I am today writing about possible cheap dividend stocks for October 2014 continue...
I do not own this stock of HNZ Group Inc. (TSX-HNZ.A, OTC- CDHPF). HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica.
This company started out as an income trust in 2005. The last dividend increase was for 5% in 2008. Dividends have not changed since then. The company has given no indication what its intentions are except to say that dividends are paid at the discretion of the Board of Directors.
Dividends are still paid monthly and the dividend yield is quite good at 6% currently. The 5 year median dividend yield is 5.42%. Analysts do not seem to think that dividends will change anytime soon. The 5 year median Dividend Payout Ratios for EPS is 52% and for CFPS is 23%. The corresponding DPR for 2013 was 73% for EPS and 23% for CFPS. For 2014 DPR for EPS is expected to be around 90%.
Shareholders have done well with this with total returns over the past 5 and 10 years at 19.17% and 13.81% per year. The portion of this return attributable to dividends is at 8.37% and 7.54% per year. The portion of this return attributable to capital gains is at 10.80% and 6.27% per year. However, the stock price hit a peak in 2012 and has been treading down since then. Currently the stock price is 48% off its peak.
The 5 year low, median and high median P/E Ratios are 4.67, 6.30 and 7.94. These are very low value considering the fact that the company has had no negative profit years. The lowest P/E Ratio for 2013 was 13.23, but this was because of low EPS. The current P/E Ratio is 14.93. This would suggest that the stock price is relatively expensive.
If you use the 12 month CFPS, the current P/CF Ratio would be 4.23 against the 9 year median P/CF Ratio of 3.92. The current one is just 8% higher and this would suggest that the stock price is reasonable.
However, if you look at P/S Ratio, the 9 year median P/S Ratio is 0.84 against a P/S Ratio using the 12 month Revenue per Share value of $18.70 and corresponding P/S Ratio of 0.98. This current P/S Ratio is some 17% higher than the 9 year median value and suggests a rather high stock price, but one still within a reasonable range.
Revenue, Earnings and Cash Flow all hit a peak in 2011 and have been declining since then. Obviously this needs to turn around if the company is to be a good investment. There has been growth in Revenue, Earnings and Cash Flow over the past 5 and 9 years, but just not lately. Analysts do not expect growth in Revenue or Earnings in 2014. I cannot see that any analyst has speculated on Cash Flow values for 2014.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a hold so the consensus recommendation is a Hold. The 12 month consensus stock price is $18.40 and that is close to the current price of $18.37.
Sound bit for Twitter and StockTwits is: Not currently a dividend growth stock. I will still follow this stock for a while to see where it goes to. However, it is not currently a dividend growth stock and so I would not be interested in buying currently. See my spreadsheet at sis.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group.
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. Follow me on Twitter or StockTwits.
I do not own this stock of HNZ Group Inc. (TSX-HNZ.A, OTC- CDHPF). HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica.
This company started out as an income trust in 2005. The last dividend increase was for 5% in 2008. Dividends have not changed since then. The company has given no indication what its intentions are except to say that dividends are paid at the discretion of the Board of Directors.
Dividends are still paid monthly and the dividend yield is quite good at 6% currently. The 5 year median dividend yield is 5.42%. Analysts do not seem to think that dividends will change anytime soon. The 5 year median Dividend Payout Ratios for EPS is 52% and for CFPS is 23%. The corresponding DPR for 2013 was 73% for EPS and 23% for CFPS. For 2014 DPR for EPS is expected to be around 90%.
Shareholders have done well with this with total returns over the past 5 and 10 years at 19.17% and 13.81% per year. The portion of this return attributable to dividends is at 8.37% and 7.54% per year. The portion of this return attributable to capital gains is at 10.80% and 6.27% per year. However, the stock price hit a peak in 2012 and has been treading down since then. Currently the stock price is 48% off its peak.
The 5 year low, median and high median P/E Ratios are 4.67, 6.30 and 7.94. These are very low value considering the fact that the company has had no negative profit years. The lowest P/E Ratio for 2013 was 13.23, but this was because of low EPS. The current P/E Ratio is 14.93. This would suggest that the stock price is relatively expensive.
If you use the 12 month CFPS, the current P/CF Ratio would be 4.23 against the 9 year median P/CF Ratio of 3.92. The current one is just 8% higher and this would suggest that the stock price is reasonable.
However, if you look at P/S Ratio, the 9 year median P/S Ratio is 0.84 against a P/S Ratio using the 12 month Revenue per Share value of $18.70 and corresponding P/S Ratio of 0.98. This current P/S Ratio is some 17% higher than the 9 year median value and suggests a rather high stock price, but one still within a reasonable range.
Revenue, Earnings and Cash Flow all hit a peak in 2011 and have been declining since then. Obviously this needs to turn around if the company is to be a good investment. There has been growth in Revenue, Earnings and Cash Flow over the past 5 and 9 years, but just not lately. Analysts do not expect growth in Revenue or Earnings in 2014. I cannot see that any analyst has speculated on Cash Flow values for 2014.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a hold so the consensus recommendation is a Hold. The 12 month consensus stock price is $18.40 and that is close to the current price of $18.37.
Sound bit for Twitter and StockTwits is: Not currently a dividend growth stock. I will still follow this stock for a while to see where it goes to. However, it is not currently a dividend growth stock and so I would not be interested in buying currently. See my spreadsheet at sis.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group.
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. Follow me on Twitter or StockTwits.
Friday, October 3, 2014
K-Bro Linen Inc. 2
I do not own this stock of K-Bro Linen Inc. (TSX-KBL, OTC- KBRLF). People were talking about this stock at the 2009 Toronto Money Show. This was one income trust being touted as currently a good buys with very good yield. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.
When l look at insider trading, if find $0.3M of insider selling and net insider selling at $0.3M. There is a bit of insider buying. Net insider selling is just 0.11% of market cap and so it small. There is some insider ownership with the CEO owning shares worth around $4.3M.
In 2013 an outstanding share were increased by some 40,000 shares which are around 0.57% of the outstanding shares and is around normal for most companies. This number of shares had a book value of $1.2M and would be worth around $1.6M at the end of 2013.
The 5 year median Price/Earnings per Share ratios are 13.52, 16.18 and 18.84. The 8 year median P/E Ratios are similar. The current P/E Ratio is 24.13 based on a stock price of $38.60 and 2014 EPS estimates of $1.60. EPS are slightly down and if you use the last 12 months EPS of $1.43 the P/E Ratio would be 26.99. This stock price test suggests that the stock price is relatively expensive. The P/E Ratios are not that high but we are talking about a Laundry company here.
I get a Graham Price of $19.17. The 9 year Price/Graham Price Ratios are 0.91, 1.09 and 1.27. The current P/GP Ratio is 2.01. This stock price test suggests that the stock price is relatively expensive. A P/GP Ratio of 2.01 is a rather high one.
The 8 year Price/Book Value per Share ratio is 1.60 and the current P/B Ratio is 3.78 based on a stock price $39.80 and BVPS of $10.21. The current P/B Ratio is some 137% higher than the 8 year P/B Ratio. This stock price test suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most recommendations are a Hold and the consensus recommendations would be a Hold. The 12 month stock price consensus is $41.30 and this implies a total return of 10.10% with 6.99% from capital gains and 3.11% from dividends.
Jesse Guidry at Detroit Gate discusses the company's second quarterly results.
Sound bit for Twitter and StockTwits is: Unfortunately, stock price is not cheap or even reasonable. Last year I thought the stock was expensive. I notice that so far this year the stock price is down by 2.5%. The stock peaked in August at $40.40 which was an increase over last year of just 2% over end of 2013 stock price. See my spreadsheet at kbl.htm.
This is the second of two parts. The first part was posted on Thursday, October 02, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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. Follow me on Twitter or StockTwits.
When l look at insider trading, if find $0.3M of insider selling and net insider selling at $0.3M. There is a bit of insider buying. Net insider selling is just 0.11% of market cap and so it small. There is some insider ownership with the CEO owning shares worth around $4.3M.
In 2013 an outstanding share were increased by some 40,000 shares which are around 0.57% of the outstanding shares and is around normal for most companies. This number of shares had a book value of $1.2M and would be worth around $1.6M at the end of 2013.
The 5 year median Price/Earnings per Share ratios are 13.52, 16.18 and 18.84. The 8 year median P/E Ratios are similar. The current P/E Ratio is 24.13 based on a stock price of $38.60 and 2014 EPS estimates of $1.60. EPS are slightly down and if you use the last 12 months EPS of $1.43 the P/E Ratio would be 26.99. This stock price test suggests that the stock price is relatively expensive. The P/E Ratios are not that high but we are talking about a Laundry company here.
I get a Graham Price of $19.17. The 9 year Price/Graham Price Ratios are 0.91, 1.09 and 1.27. The current P/GP Ratio is 2.01. This stock price test suggests that the stock price is relatively expensive. A P/GP Ratio of 2.01 is a rather high one.
The 8 year Price/Book Value per Share ratio is 1.60 and the current P/B Ratio is 3.78 based on a stock price $39.80 and BVPS of $10.21. The current P/B Ratio is some 137% higher than the 8 year P/B Ratio. This stock price test suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most recommendations are a Hold and the consensus recommendations would be a Hold. The 12 month stock price consensus is $41.30 and this implies a total return of 10.10% with 6.99% from capital gains and 3.11% from dividends.
Jesse Guidry at Detroit Gate discusses the company's second quarterly results.
Sound bit for Twitter and StockTwits is: Unfortunately, stock price is not cheap or even reasonable. Last year I thought the stock was expensive. I notice that so far this year the stock price is down by 2.5%. The stock peaked in August at $40.40 which was an increase over last year of just 2% over end of 2013 stock price. See my spreadsheet at kbl.htm.
This is the second of two parts. The first part was posted on Thursday, October 02, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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. Follow me on Twitter or StockTwits.
Thursday, October 2, 2014
K-Bro Linen Inc.
I do not own this stock of K-Bro Linen Inc. (TSX-KBL, OTC- KBRLF). People were talking about this stock at the 2009 Toronto Money Show. This was one income trust being touted as currently a good buys with very good yield. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.
The stock just started off in 2005. As an income trust it increased it dividends or distributions. They stopped increases when it changed from an income trust to a corporation. So increases were stopped for 3 years. In 2011 dividends were increased by 4.5% and in 2013 they were increased by 4.4%. There were no dividend increases in 2012 and none so far in 2014. So current dividend increases are running about the rate of current inflation.
The 5 year median Dividend Payout Ratios are running at 89.9% for EPS and 43.5% for CFPS. The corresponding DPR for 2013 were lower at 80% for EPS and 40.1% for CFPS. The 5 year median dividend yield is 5.9% and the current dividend yield is 3.1%. So currently the dividend yields are moderate and the dividend increases are modest.
Shareholders have done well with stock over the past 5 and 10 years with total returns of 29.32% and 18.82% per year over these periods. The dividend portion of this total return was at 5.90% and 6.12% and the capital gain portion of this total return was at 23.42% and 12.70%. The dividend yields will not be as high in the future as all companies that when from income trusts to corporation have lower dividend yields.
The outstanding dividends have not changed over the past 5 year, but have increased by 6.1% per year over the past 8 years. Shares have increased due to stock issues and stock options. The company has had very good grown in revenue, earnings and cash flow over the past 5 and 8 or 10 years.
Revenue per Share has increased by 8.8% and 7.7% per year over the past 5 and 10 years. Earnings per Share have increased by 15.7% and 8.2% per year over the past 5 and 8 years. Cash Flow per Share has increased by 11.7% and 7.6% per year over the past 5 and 8 years.
The company started off with low Return on Equity Ratios but over the past 5 years they have been above 10%. The ROE for 2013 was 14.5% and the 5 year median was 12.6%. The ROE on comprehensive income is the same as for net income.
The liquidity Ratio is a bit low at 1.27 and if you add in cash flow after dividends it is much more respectable at 1.83. The other debt ratios are good with the Debt Ratio at 2.73 and the Leverage and Debt/Equity Ratios at 1.58 and 0.58.
Sound bit for Twitter and StockTwits is: Dividend Growth Small Cap. This small cap has so far been a good investment for its shareholders. This company used to be an income trust so it is hard to say what sort of dividend growth stock it will end up being. See my spreadsheet at kbl.htm.
This is the first of two parts. The second part will be posted on Friday, October 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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. Follow me on Twitter or StockTwits.
The stock just started off in 2005. As an income trust it increased it dividends or distributions. They stopped increases when it changed from an income trust to a corporation. So increases were stopped for 3 years. In 2011 dividends were increased by 4.5% and in 2013 they were increased by 4.4%. There were no dividend increases in 2012 and none so far in 2014. So current dividend increases are running about the rate of current inflation.
The 5 year median Dividend Payout Ratios are running at 89.9% for EPS and 43.5% for CFPS. The corresponding DPR for 2013 were lower at 80% for EPS and 40.1% for CFPS. The 5 year median dividend yield is 5.9% and the current dividend yield is 3.1%. So currently the dividend yields are moderate and the dividend increases are modest.
Shareholders have done well with stock over the past 5 and 10 years with total returns of 29.32% and 18.82% per year over these periods. The dividend portion of this total return was at 5.90% and 6.12% and the capital gain portion of this total return was at 23.42% and 12.70%. The dividend yields will not be as high in the future as all companies that when from income trusts to corporation have lower dividend yields.
The outstanding dividends have not changed over the past 5 year, but have increased by 6.1% per year over the past 8 years. Shares have increased due to stock issues and stock options. The company has had very good grown in revenue, earnings and cash flow over the past 5 and 8 or 10 years.
Revenue per Share has increased by 8.8% and 7.7% per year over the past 5 and 10 years. Earnings per Share have increased by 15.7% and 8.2% per year over the past 5 and 8 years. Cash Flow per Share has increased by 11.7% and 7.6% per year over the past 5 and 8 years.
The company started off with low Return on Equity Ratios but over the past 5 years they have been above 10%. The ROE for 2013 was 14.5% and the 5 year median was 12.6%. The ROE on comprehensive income is the same as for net income.
The liquidity Ratio is a bit low at 1.27 and if you add in cash flow after dividends it is much more respectable at 1.83. The other debt ratios are good with the Debt Ratio at 2.73 and the Leverage and Debt/Equity Ratios at 1.58 and 0.58.
Sound bit for Twitter and StockTwits is: Dividend Growth Small Cap. This small cap has so far been a good investment for its shareholders. This company used to be an income trust so it is hard to say what sort of dividend growth stock it will end up being. See my spreadsheet at kbl.htm.
This is the first of two parts. The second part will be posted on Friday, October 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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. Follow me on Twitter or StockTwits.
Wednesday, October 1, 2014
Le Chateau Inc.
On my other blog I am today writing about Preferred Shares continue...
I do not own this stock of Le Chateau Inc. (TSX-CTU.A, OTC-LCUAF). In June 10, 2012 I started spreadsheet because of a request from Blog reader. It was also on my list of dividend and special dividend paying stocks from a column Jennifer Dowty wrote about Dividend Paying stocks in 2010.
It has been one year since I last reviewed this stock. I guess it is a plus for this stock since it has survived another year. It is interesting that even though the stock has fallen to a low or $1.20, investors that have had this stock for 10 years have lost only 1.01% per year. The capital loss is $14.87% per year, but dividends are at 13.85% per year. The main reason for the loss is that the stock fell almost 65% so far this year.
As far as insider trading goes, the CEO was still buying this stock in January 2014 and insider buying is at $800,190. This buying represents 2.4% of the outstanding shares and therefore is quite a bit. There has been no insider buying or selling since then.
I guess a bad sign is that I cannot find any analyst that follows this stock currently. The last time I found analysts that followed this stock were for my review in mid-2012. For my review of 2013, I could only find some net income estimates.
Revenue has been falling since 2010 and is still falling as far as what the second quarterly financials say. They still have revenue, but they are not making any money. They wisely cut their dividends because of the lack of earnings. They also have negative cash flow for 2013 and this has not improved with the second quarterly report either.
They have some heavy insider ownership with the CEO and Chairman having shares still worth around $25M and a director having shares worth around $7.1M. They have tiered shares with Class A shares carrying one vote and Class B shares carrying 10 votes.
Their debt ratios are good with the Liquidity Ratio at 2.20 and the Debt Ratio at 2.46. The Leverage and Debt/Equity Ratios are good at 1.69 and 0.69.
This recent G&M article talks about the current tough Canadian retail market. A recent article in the Montreal Gazette also talks about the current tough Canadian retail market. There is also an interesting recent blogger called Forest City Fashionista who talks about the opening of a new Le Chateau in London, Ontario.
Sound bit for Twitter and StockTwits is: I would not buy. I have already bought some Reitman shares which are in the same category as this stock. I was willing to take a chance on Reitman, but not on this stock. See my spreadsheet at ctu.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Le Chateau is a Canadian specialty retailer and manufacturer of contemporary fashion apparel, accessories, and footwear at value pricing for style-conscious women and men of all ages. Its web site is here LeChateau.
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. Follow me on Twitter or StockTwits.
I do not own this stock of Le Chateau Inc. (TSX-CTU.A, OTC-LCUAF). In June 10, 2012 I started spreadsheet because of a request from Blog reader. It was also on my list of dividend and special dividend paying stocks from a column Jennifer Dowty wrote about Dividend Paying stocks in 2010.
It has been one year since I last reviewed this stock. I guess it is a plus for this stock since it has survived another year. It is interesting that even though the stock has fallen to a low or $1.20, investors that have had this stock for 10 years have lost only 1.01% per year. The capital loss is $14.87% per year, but dividends are at 13.85% per year. The main reason for the loss is that the stock fell almost 65% so far this year.
As far as insider trading goes, the CEO was still buying this stock in January 2014 and insider buying is at $800,190. This buying represents 2.4% of the outstanding shares and therefore is quite a bit. There has been no insider buying or selling since then.
I guess a bad sign is that I cannot find any analyst that follows this stock currently. The last time I found analysts that followed this stock were for my review in mid-2012. For my review of 2013, I could only find some net income estimates.
Revenue has been falling since 2010 and is still falling as far as what the second quarterly financials say. They still have revenue, but they are not making any money. They wisely cut their dividends because of the lack of earnings. They also have negative cash flow for 2013 and this has not improved with the second quarterly report either.
They have some heavy insider ownership with the CEO and Chairman having shares still worth around $25M and a director having shares worth around $7.1M. They have tiered shares with Class A shares carrying one vote and Class B shares carrying 10 votes.
Their debt ratios are good with the Liquidity Ratio at 2.20 and the Debt Ratio at 2.46. The Leverage and Debt/Equity Ratios are good at 1.69 and 0.69.
This recent G&M article talks about the current tough Canadian retail market. A recent article in the Montreal Gazette also talks about the current tough Canadian retail market. There is also an interesting recent blogger called Forest City Fashionista who talks about the opening of a new Le Chateau in London, Ontario.
Sound bit for Twitter and StockTwits is: I would not buy. I have already bought some Reitman shares which are in the same category as this stock. I was willing to take a chance on Reitman, but not on this stock. See my spreadsheet at ctu.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Le Chateau is a Canadian specialty retailer and manufacturer of contemporary fashion apparel, accessories, and footwear at value pricing for style-conscious women and men of all ages. Its web site is here LeChateau.
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. Follow me on Twitter or StockTwits.
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