I had read an article in 1997 about buying small cap stocks. It said you should be a basket of them, of at least 5 stocks. If 2 of the 5 when successful you then would be a winner. Theory is that you can only lose what you have invested, but what you can gain is, potentially, enormous.
Mostly the recession after the 2000 bear market came and all the small caps were so heavily damaged by this that they never really recovered. I never invested much in any company, none over $3,000 and some under $1,000.
Small caps were:
Virexx Medical Corp (TSX-VIR) I bought this in 1997 and sold it in 2006 at a loss of 32.18% per year. My total loss was 90%. It hit a high in 2000 and went down every year after that. It was a drug company that had revenue, but never earned any money. I sold when it did a reverse split. It was bought by Paladin Labs Inc. in 2008.
Continental Home Health (TSX-CHT). I bought this in 1997 (for $1.40 a share) and sold in 2005(for $.12 a share) at a 95% loss. I believe it was delisted in 2006. The stock price for this company fell some 80% in 2000. It never seemed to make any earnings after 2001. Continental Home Healthcare Ltd. operates health and personal care stores. This company operated in the US.
Organic Resource Management (TSX-ORI). I made several purchases of the stock over a few months between July and December of 1997. My purchase prices ranged from $.86 to $2.00. My total return since then is a loss of 21.16 per year or a 96.5% capital loss. I still have this stock as it is not worthwhile selling.
I reviewed this stock yesterday. For my last full blog entry on this stock in October 2011, click here.
ITI Education Corp. (TSX-IKT). I bought in 1998. It went bankrupt in 2002 and so I got 0 for shares, so 100% loss. This company seemed to have a good idea (it was into technical education), however, I do not think that it ever made money and it really started to have problems 1998 and 1999. However, the recession that followed the 2000 bear market killed it.
Pan Terra (TSXV-PNT). I bought this company in 2000 for $8.80 a share. Company was then called Tathacus Resources Ltd and it seemed to be doing interesting things. But ever since then, company has had problems. Shares did not fall right away because trading was halted. However, when trading was restarted (sometime in 2002) shares fell 80%, then another 80%. All told it fell 99%.
I retained this stock mainly because it its value is too small to bother selling. Trading was also stopped for long periods of time. My lost is 96%.
The interesting thing about this is that the listing has been acquired and more money has been put into this company. Current owners plan to buy something and change the company’s name sometime this year. I have never blogged about this company. Shares have never been 0 because it has often had trading suspended.
Mindready Solutions (TSX-MNY). I bought this in 2001(at $17 a share) and it was bought out in 2008. My capital loss was 100%, but there was one special dividend paid in 2004, so that the loss would be reduced from 100% to 95%. Company was bought out, or at least the assets were bought by Averna. Problem was they were mainly dependent on, I think, one customer.
This stock did not do too badly at first, but in 2001, it lost 75% of share value, then in 2002 it lost some 75% more. Shares started to climb again in 2003, but the company had not made any profit since 2000.
I did very poorly on this first lot. Part of it was timing. Also, stock prices fall prior to a recession and it takes some time before the damage to companies is really apparent. Tomorrow, I will continue to talk about other small companies I have had experience with.
I think that I have mentioned before that I wanted to get rid of Enerflex (TSX-EFX). This was the spin off from Toromont Industries (TSX-TIH) and I have no interest in holding it. Unfortunately, I had held Toromont in all my accounts. Yesterday, I sold Enerflex from my RRSP and Locked-In RRSP accounts. For the RRSP account, I bought Russel Metals (TSX-RUS) and for the Locked-In RRSP, I bought Genivar (TSX-GNV).
When I want to buy something for an account, I first look to see if it would a reasonable thing to buy more of a stock I already have in that account and then to see if it would be a reasonable thing to buy more of a stock in another account. It is only then that I look for something new. For both of my purchases, I picked a stock already in the applicable account.
There is a lot of volatility in the market. Because of this I started my sales and purchases in the morning and put in a price I wanted to sell or buy at and limited the offer to that day. You do not always get what you want, but mostly I do. You have to be reasonable in price put into the order form. You also have to be patient. You may have to wait the whole day to have the order executed.
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, November 1, 2011
Monday, October 31, 2011
Organic Resource Management
I had read an article in 1997 about buying small cap stocks. It said you should buy a basket of them, of at least 5 stocks. If 2 of the 5 when successful you then would be a winner. I will talk about one of these stocks today, but tomorrow and the following days, I will talk generally about my adventures in small caps.
I made several purchases of the stock over a few months between July and December of 1997. My purchase prices ranged from $.86 to $2.00. My total return since then is a loss of 21.16 per year or a 96.5% capital loss. This is, of course, a “green” investment.
This stock actually peaked in 1999. It initially fell some 87% in 2000, and ultimately fell over 99%. In 2008 this stock went through a 20 to 1 consolidation. This is never a good sign. However, in 2009 it turned a profit, the first one for a very long time. However, in 2011, this company again lost money.
One good thing to talk about on this stock is that it has been growing its revenue. Revenues over the past 10 years have grown at the rate of 33% per year. Revenue per share, over the past 10 years, has grown at 15% per year. I, unfortunately, cannot say the same thing about revenue growth over the past 5 years. Revenues made a peaked in 2008 that they have yet to match.
Shares prices, over the past 5 years are up some 5%. This is the last of any growth. There has been none for EPS, Cash Flow or Book Value. The company made no earnings for the financial year ending in June 2011. The most positive thing to say for cash flow is that it is usually a positive figure. The Operational Profit Margin (CF/Revenue) Ratio is rather low, with the latest ratio at just 5.2%. The 5 year median OPM is 6.5%.
Debt ratios are ok for this stock. The current Liquidity Ratio is at 1.06. The current Asset/Liability is much better at 1.80. The current Leverage and Debt/Equity Ratios are ok at 2.25 and 1.25
I cannot find any analysts that follow this stock. The most positive thing that I see is that more than 66% of the company is owned by insiders. I did not sell this because of the low value. It is also interesting to track such a company and see how it ends up. You do have a tendency to keep track of companies you invest in. I will retain the shares I have for now and see what happens.
There is an article on this company in a magazine called Biomass. There is no date on this article, but it is given a date of 27 Feb 2009 by Google.
The Company’s core business is the regularly scheduled collection of non-hazardous liquid organic residuals. It collects, processes and recycles these wastes. Its web site is here Organic Resource. See my spreadsheet at ori.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 made several purchases of the stock over a few months between July and December of 1997. My purchase prices ranged from $.86 to $2.00. My total return since then is a loss of 21.16 per year or a 96.5% capital loss. This is, of course, a “green” investment.
This stock actually peaked in 1999. It initially fell some 87% in 2000, and ultimately fell over 99%. In 2008 this stock went through a 20 to 1 consolidation. This is never a good sign. However, in 2009 it turned a profit, the first one for a very long time. However, in 2011, this company again lost money.
One good thing to talk about on this stock is that it has been growing its revenue. Revenues over the past 10 years have grown at the rate of 33% per year. Revenue per share, over the past 10 years, has grown at 15% per year. I, unfortunately, cannot say the same thing about revenue growth over the past 5 years. Revenues made a peaked in 2008 that they have yet to match.
Shares prices, over the past 5 years are up some 5%. This is the last of any growth. There has been none for EPS, Cash Flow or Book Value. The company made no earnings for the financial year ending in June 2011. The most positive thing to say for cash flow is that it is usually a positive figure. The Operational Profit Margin (CF/Revenue) Ratio is rather low, with the latest ratio at just 5.2%. The 5 year median OPM is 6.5%.
Debt ratios are ok for this stock. The current Liquidity Ratio is at 1.06. The current Asset/Liability is much better at 1.80. The current Leverage and Debt/Equity Ratios are ok at 2.25 and 1.25
I cannot find any analysts that follow this stock. The most positive thing that I see is that more than 66% of the company is owned by insiders. I did not sell this because of the low value. It is also interesting to track such a company and see how it ends up. You do have a tendency to keep track of companies you invest in. I will retain the shares I have for now and see what happens.
There is an article on this company in a magazine called Biomass. There is no date on this article, but it is given a date of 27 Feb 2009 by Google.
The Company’s core business is the regularly scheduled collection of non-hazardous liquid organic residuals. It collects, processes and recycles these wastes. Its web site is here Organic Resource. See my spreadsheet at ori.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, October 28, 2011
Ballard Power Systems Inc
I do not own this stock (TSX-BLD), but I used to and I still follow it. I bought it because I liked its story of using fuel cells. This for me was a great story of us giving us the ability to go green. Seemed like a good thing to invest in. I do believe we have to stop using oil at some point. Using oil is one way that we pollute our environment and we have to look after our environment.
No matter what you might think about global warming/global change or whatever they are calling it now, we certainly can do more to protect our environment. Of course, the argument is not really about global warming/global change, since this is always happening. Also the world has gotten warmer since the little ice age (world has been warming since approximately 1850). The argument is about whether or not we are causing this, especially with CO2. The way I see it is that mankind likes to think that he is in charge. This is what I have doubts about, i.e. that mankind is really in charge.
Getting back to the stock I want to talk about, I do not think that any one can argue that the world would be better off if we could get off of our oil dependency (I am concerned about the fact that a lot of my utilities are oil pipelines, but that is another story).
It seems like a great idea at the time that is, investing in green energy. Make money while I help save the planet. However, it did not turn out that way. I think it is important to look investments that do not do so well as well as those that do. The first kind can be a cautionary tale.
I bought this stock in 1997 and sold it in 2006 and lost some 5.31% per year or 37.6% over 9 years. This stock hit a high of $194.00 per share in 2000. I bought at $17.34 and sold at $10.82. There was also a 3 to 1 share split in 1998. This stock is worth $1.40 a share today.
The company has had few years where it has any earnings, and none of positive cash flow, as far as I can see. Since 2002, the book value has gone down steadily. However, Revenue per share has been growing and over the past 5 and 10 years, it has grown around 10% per year. Total revenue however has not grown as well. The 10 year growth of Revenue over the past 5 and 10 years is 4% and 9%.
No one expects this stock to earn anything or have any cash flow over the next two years. However, sales are expected to grow. It is interesting that the company had revenue of $65M in 2010, it is expected to have $86M then $109M in revenue over this year and next, but it is not expected to make any money or have positive cash flow.
Over the past year there has been some minor insider buying and insider selling. Lots of insiders hold options. Some 74 Institutions hold around 13% of the shares of this company. Over the past 3 months there has been minor (less than 1%) selling of shares by institutions.
In the past there were a number of sell recommendations on this stock. The basic comment was that this company does not seem to be able to make any money. However, recently the shares have been upgraded and there are some Strong Buy and Buy recommendations, along with some Hold recommendations. The consensus recommendation is a Buy. Buy recommendations come with a 12 month stock price of $2.48.
You have to wonder about buying this stock. It does not seem to be able to make any money. No one expects it to make any money this year or next, but they do expect the share price to move up from current $1.40 to $2.48, a 77% run up?
Ballard Power Systems designs and manufactures clean energy hydrogen fuel cells. Better energy, delivered through our focused fuel cell innovations, offers the Power to Change end-user applications, while also improving the environment. Its web site is here Ballard. See my spreadsheet at bld.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.
No matter what you might think about global warming/global change or whatever they are calling it now, we certainly can do more to protect our environment. Of course, the argument is not really about global warming/global change, since this is always happening. Also the world has gotten warmer since the little ice age (world has been warming since approximately 1850). The argument is about whether or not we are causing this, especially with CO2. The way I see it is that mankind likes to think that he is in charge. This is what I have doubts about, i.e. that mankind is really in charge.
Getting back to the stock I want to talk about, I do not think that any one can argue that the world would be better off if we could get off of our oil dependency (I am concerned about the fact that a lot of my utilities are oil pipelines, but that is another story).
It seems like a great idea at the time that is, investing in green energy. Make money while I help save the planet. However, it did not turn out that way. I think it is important to look investments that do not do so well as well as those that do. The first kind can be a cautionary tale.
I bought this stock in 1997 and sold it in 2006 and lost some 5.31% per year or 37.6% over 9 years. This stock hit a high of $194.00 per share in 2000. I bought at $17.34 and sold at $10.82. There was also a 3 to 1 share split in 1998. This stock is worth $1.40 a share today.
The company has had few years where it has any earnings, and none of positive cash flow, as far as I can see. Since 2002, the book value has gone down steadily. However, Revenue per share has been growing and over the past 5 and 10 years, it has grown around 10% per year. Total revenue however has not grown as well. The 10 year growth of Revenue over the past 5 and 10 years is 4% and 9%.
No one expects this stock to earn anything or have any cash flow over the next two years. However, sales are expected to grow. It is interesting that the company had revenue of $65M in 2010, it is expected to have $86M then $109M in revenue over this year and next, but it is not expected to make any money or have positive cash flow.
Over the past year there has been some minor insider buying and insider selling. Lots of insiders hold options. Some 74 Institutions hold around 13% of the shares of this company. Over the past 3 months there has been minor (less than 1%) selling of shares by institutions.
In the past there were a number of sell recommendations on this stock. The basic comment was that this company does not seem to be able to make any money. However, recently the shares have been upgraded and there are some Strong Buy and Buy recommendations, along with some Hold recommendations. The consensus recommendation is a Buy. Buy recommendations come with a 12 month stock price of $2.48.
You have to wonder about buying this stock. It does not seem to be able to make any money. No one expects it to make any money this year or next, but they do expect the share price to move up from current $1.40 to $2.48, a 77% run up?
Ballard Power Systems designs and manufactures clean energy hydrogen fuel cells. Better energy, delivered through our focused fuel cell innovations, offers the Power to Change end-user applications, while also improving the environment. Its web site is here Ballard. See my spreadsheet at bld.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, October 27, 2011
Evertz Technologies 2
I now own this stock (TSX-ET). I got idea to investigate this stock from a G&M Article. See G&M. As I mentioned at the end of blog of yesterday, I did buy some of this stock yesterday.
A couple of things stand out. One is that there is lots of insider ownership. Over 73% of this company is owned by insiders (there is two big insider owners). There has been some insiders buying and insider selling, but of very limited amounts. Institutions (some 20) own another 5%. This means that there is not much to trade and it probably makes the company a bit illiquid. Over the past 3 months, institutions have marginally increased their shares in this company. The other thing that stands out is that the company is doing a lot of buying back of company shares.
The stock had a recent low of $11.21 in mid-October and it has been climbing ever since and it is up almost 20% to date. The stock is also up more than 5% just today. I have a 5 year low median Price/Earnings of 13.01 and a 5 year high median P/E of 19.62. For today’s price of $13.34, the P/E is on the low side at 13.75.
I get a Graham Price of $10.43. The stock price of $13.34 is some 28% higher. However, on a relative basis the average difference between the Graham price and the stock price is the stock price being 50% higher. I get a 5 year Price/Book Value Ratio of 4.60 (which I must admit is a bit high). However, the current one of 2.67 is fine. On a relative basis, the current P/B Ratio is lower than the 5 year average by just over 60%, which shows a relatively good stock price.
The current dividend yield of 3.6% is higher than the 5 year median yield of 1.96. However, they have been increasing the dividend quite rapidly and the latest was a 20% increase. (The median dividend increase is 22% per year.) By all these measures the current stock price looks reasonable. How long this will be is hard to determine. However, I would think that the price could go to $20 before the stock would be considered to be a bit pricey.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. (There is nothing unusual here.) This is not a well followed stock, but the blog Canadian Dividend Stock has a recent write up on this stock. He feels that the company has good growth potential, but will not have long term stability. (Personally, I think you have to keep an eye on tech stocks, you can make money on them, but their situation can change fast.)
Blogger Tech Vibes has a different opinion. He thinks that Evertz is undervalued and we should buy it because it has a good financial history. He thinks investors looking for long term profitability in a stock should look at this one, as well as 3 other Canadian Tech stocks.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz . See my spreadsheet at et.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.
A couple of things stand out. One is that there is lots of insider ownership. Over 73% of this company is owned by insiders (there is two big insider owners). There has been some insiders buying and insider selling, but of very limited amounts. Institutions (some 20) own another 5%. This means that there is not much to trade and it probably makes the company a bit illiquid. Over the past 3 months, institutions have marginally increased their shares in this company. The other thing that stands out is that the company is doing a lot of buying back of company shares.
The stock had a recent low of $11.21 in mid-October and it has been climbing ever since and it is up almost 20% to date. The stock is also up more than 5% just today. I have a 5 year low median Price/Earnings of 13.01 and a 5 year high median P/E of 19.62. For today’s price of $13.34, the P/E is on the low side at 13.75.
I get a Graham Price of $10.43. The stock price of $13.34 is some 28% higher. However, on a relative basis the average difference between the Graham price and the stock price is the stock price being 50% higher. I get a 5 year Price/Book Value Ratio of 4.60 (which I must admit is a bit high). However, the current one of 2.67 is fine. On a relative basis, the current P/B Ratio is lower than the 5 year average by just over 60%, which shows a relatively good stock price.
The current dividend yield of 3.6% is higher than the 5 year median yield of 1.96. However, they have been increasing the dividend quite rapidly and the latest was a 20% increase. (The median dividend increase is 22% per year.) By all these measures the current stock price looks reasonable. How long this will be is hard to determine. However, I would think that the price could go to $20 before the stock would be considered to be a bit pricey.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. (There is nothing unusual here.) This is not a well followed stock, but the blog Canadian Dividend Stock has a recent write up on this stock. He feels that the company has good growth potential, but will not have long term stability. (Personally, I think you have to keep an eye on tech stocks, you can make money on them, but their situation can change fast.)
Blogger Tech Vibes has a different opinion. He thinks that Evertz is undervalued and we should buy it because it has a good financial history. He thinks investors looking for long term profitability in a stock should look at this one, as well as 3 other Canadian Tech stocks.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz . See my spreadsheet at et.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, October 26, 2011
Evertz Technologies
I do not own this stock (TSX-ET). I got idea to investigate this stock from a G&M Article. See G&M. It looked like something I might want to try out.
I did a spreadsheet on this stock and it does look good. The only thing is that the stock has not been listed for very long and I only have 5 years of data on it. The stock has a very nice dividend with a yield of 3.75%. The last dividend increase was for 20%. However, because of a dividend raise in the last financial year too, the dividends are up almost 28% year over year.
The Dividend Payout Ratios are good at expected rates for this year at 47% for earnings and 44% for cash flow. They are a bit higher than last years of 35% and 36%, respectively. (See my site for information on Dividend Payout Ratios). What is also important for a dividend paying small company is debt ratios and these are also very good on this stock. The company really has no debt.
The current Liquidity Ratio is 10.85 with a 5 year median of 6.76. The Asset/Liability Ratio is 10.85 with a 5 year median Ratio of 6.86. These ratios started off quite low in 2005 and 2006, but have been very good since 2007. Leverage and Debt/Equity Ratios are also good with current ratios at 1.11 and 0.11. The 5 year median ratios are 1.18 and 0.17, respectively.
The growth for Revenues, Earnings, Cash Flow and Book Value are all very good on this stock. Over the past 5 years, the revenue per share has increased by 14.4% per year. The EPS has increased at the rate of 12% per year. The Cash Flow has increased by 12% per year and the book value by 110% per year.
The stock price had peaked on this stock in 2008 and has not made it back to this peak yet. However, if you had invested in this stock over the past 5 years, you probably would have made a very decent 9% per year total return. As the dividends have increased very fast from a lower yield, over the past 5 years the portion of the total return attributable to dividends would probably be under 2%.
The return on equity for this stock has also been very good. The ROE for the last financial year is 20.8% and for the last 12 months a bit lower at 20.2%. The 5 year median ROE is 20.8%.
I decided to try out this stock and purchased a couple of hundred shares today. I also sold Enerflex Ltd. (TSX-EFX) that I got from a distribution by Toromont Industries. I had not wanted this company and it seemed like a good time to sell. The price I got was a bit below the ACB of the stock, but this is a low market and I got Evertz at a good price. I also bought some Ag Growth International (TSX-AFN) at a good price.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is ere Evertz. See my spreadsheet at et.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 did a spreadsheet on this stock and it does look good. The only thing is that the stock has not been listed for very long and I only have 5 years of data on it. The stock has a very nice dividend with a yield of 3.75%. The last dividend increase was for 20%. However, because of a dividend raise in the last financial year too, the dividends are up almost 28% year over year.
The Dividend Payout Ratios are good at expected rates for this year at 47% for earnings and 44% for cash flow. They are a bit higher than last years of 35% and 36%, respectively. (See my site for information on Dividend Payout Ratios). What is also important for a dividend paying small company is debt ratios and these are also very good on this stock. The company really has no debt.
The current Liquidity Ratio is 10.85 with a 5 year median of 6.76. The Asset/Liability Ratio is 10.85 with a 5 year median Ratio of 6.86. These ratios started off quite low in 2005 and 2006, but have been very good since 2007. Leverage and Debt/Equity Ratios are also good with current ratios at 1.11 and 0.11. The 5 year median ratios are 1.18 and 0.17, respectively.
The growth for Revenues, Earnings, Cash Flow and Book Value are all very good on this stock. Over the past 5 years, the revenue per share has increased by 14.4% per year. The EPS has increased at the rate of 12% per year. The Cash Flow has increased by 12% per year and the book value by 110% per year.
The stock price had peaked on this stock in 2008 and has not made it back to this peak yet. However, if you had invested in this stock over the past 5 years, you probably would have made a very decent 9% per year total return. As the dividends have increased very fast from a lower yield, over the past 5 years the portion of the total return attributable to dividends would probably be under 2%.
The return on equity for this stock has also been very good. The ROE for the last financial year is 20.8% and for the last 12 months a bit lower at 20.2%. The 5 year median ROE is 20.8%.
I decided to try out this stock and purchased a couple of hundred shares today. I also sold Enerflex Ltd. (TSX-EFX) that I got from a distribution by Toromont Industries. I had not wanted this company and it seemed like a good time to sell. The price I got was a bit below the ACB of the stock, but this is a low market and I got Evertz at a good price. I also bought some Ag Growth International (TSX-AFN) at a good price.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is ere Evertz. See my spreadsheet at et.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, October 25, 2011
Dividend Increase, Third Quarter 2
Today, I am updating my spreadsheet on dividends. For all my stocks, I have shown in the “11” (for 2011) column, if a company has actually increased their dividend yet for their current financial year ending in December 2011. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2011. I have also added columns of “Div” and “12” for any of my stocks that have financial years not ending in December 2011 and they are therefore into their 2012 financial year.
For the second quarter of 2011, I had 7 companies increase their dividends. I will cover the remaining 4 today. You can use your mouse to highlight a line in my htm documents.
Davis & Henderson (TSX-DH) down, then up
Royal Bank (TSX-RY)
Saputo Inc. (TSX-SAP)
Alimentation Couche Tard (TSX-ATD.A)
The first company to talk about is Davis & Henderson. I first bought this company in 2009. It was an income trust at that time and it duly converted to a corporation and cut it dividends by almost 35%. Now in the third quarter, it has raised its dividend 3.3%. This is not a great rise, but it is probably more than inflation.
I bought more of this company in 2010 and 2011 and my total return is 10.75% per year. This stock currently has a great yield of 7.38%. Recently, analysts have upped expect CF for 2011 and 2011, downgraded the EPS for 2011, but upped it for 2012. The Dividend Payout Ratios for Earnings and CF are probably a little high for 2011 at estimates of 64% and 54%, but the company hasn’t got much debt.
For my last full blog entries on this stock in May 2011, click here or here.
For Royal Bank, the dividend raise for the third quarter of this year is the first one since 2008. I guess the increase of 8% is fine, but it is lower than past rises, which were about twice this. The expected DPR for 2011 are 47% for both earnings and cash flow. Estimates have recently changed with Earnings going up and cash flow going down for 2011. I have been invested in the Royal Bank since 1995 and my total return is 18% per year.
For my last full blog entries on this stock in December 2010, click here or here.
The next stock to talk about is Saputo. This is a retail stock with a low dividend yield (currently at 1.8%) and a usually high dividend increase. This recent dividend increase of 18.8% is good. I bought this stock in 2006 and 2007 and my total return is 18.7% per year. Probably only 2% is dividends. This stock has low DPRs, probably because it needs money for growth. It also has good debt ratios.
For my last full blog entries on this stock in July 2011, click here or here.
The last stock to talk about is Alimentation Couche Tard. This is another retail stock. It has extremely low dividend yields (less than1%), but very low DPRs and ok debt ratios. The recent dividend increases was 25% with the total increase in dividends for their financial year ending in 2012 at 39%, as this company increased their dividend in the middle of their last financial year also (that is two dividends ago).
I have bought stock in this company in 2004, 2006 and 2007 and have made a total return of 11.3% per year. Less than 1% would be attributable to dividends. For my last full blog entries on this stock in August 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 second quarter of 2011, I had 7 companies increase their dividends. I will cover the remaining 4 today. You can use your mouse to highlight a line in my htm documents.
Davis & Henderson (TSX-DH) down, then up
Royal Bank (TSX-RY)
Saputo Inc. (TSX-SAP)
Alimentation Couche Tard (TSX-ATD.A)
The first company to talk about is Davis & Henderson. I first bought this company in 2009. It was an income trust at that time and it duly converted to a corporation and cut it dividends by almost 35%. Now in the third quarter, it has raised its dividend 3.3%. This is not a great rise, but it is probably more than inflation.
I bought more of this company in 2010 and 2011 and my total return is 10.75% per year. This stock currently has a great yield of 7.38%. Recently, analysts have upped expect CF for 2011 and 2011, downgraded the EPS for 2011, but upped it for 2012. The Dividend Payout Ratios for Earnings and CF are probably a little high for 2011 at estimates of 64% and 54%, but the company hasn’t got much debt.
For my last full blog entries on this stock in May 2011, click here or here.
For Royal Bank, the dividend raise for the third quarter of this year is the first one since 2008. I guess the increase of 8% is fine, but it is lower than past rises, which were about twice this. The expected DPR for 2011 are 47% for both earnings and cash flow. Estimates have recently changed with Earnings going up and cash flow going down for 2011. I have been invested in the Royal Bank since 1995 and my total return is 18% per year.
For my last full blog entries on this stock in December 2010, click here or here.
The next stock to talk about is Saputo. This is a retail stock with a low dividend yield (currently at 1.8%) and a usually high dividend increase. This recent dividend increase of 18.8% is good. I bought this stock in 2006 and 2007 and my total return is 18.7% per year. Probably only 2% is dividends. This stock has low DPRs, probably because it needs money for growth. It also has good debt ratios.
For my last full blog entries on this stock in July 2011, click here or here.
The last stock to talk about is Alimentation Couche Tard. This is another retail stock. It has extremely low dividend yields (less than1%), but very low DPRs and ok debt ratios. The recent dividend increases was 25% with the total increase in dividends for their financial year ending in 2012 at 39%, as this company increased their dividend in the middle of their last financial year also (that is two dividends ago).
I have bought stock in this company in 2004, 2006 and 2007 and have made a total return of 11.3% per year. Less than 1% would be attributable to dividends. For my last full blog entries on this stock in August 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, October 24, 2011
Dividend Increase, Third Quarter
From questions on Reasonable Stock Price, I would suggest that you never invest in the Stock Market (Bond Market too) any money you will need in the next 5 years. Also, you should plan on a 5 year period to take money out of a stock portfolio. Over a 5 year period, you can take money out when the market is relatively high. In a stock market, you only really know where the market is, relatively.
I know that it is not always possible to plan. Life happens. But if you can delay cashing out stocks you might be better off. Fall is generally the worse time to take money out of a stock portfolio. January is better and between March and May even better. The stock market has a seasonality to it. There is no logical reason for this, but it happens on a pretty consistent basis. Knowing this may help in making plans to take money from a stock portfolio.
Today, I am updating my spreadsheet on dividends. For all my stocks, I have shown in the “11” (for 2011) column, if a company has actually increased their dividend yet for their current financial year ending in December 2011. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2011. I have also added columns of “Div” and “12” for any of my stocks that have financial years not ending in December 2011 and they are therefore into their 2012 financial year.
For the third quarter of 2011, I had 7 companies increase their dividends. In my spreadsheet, these increases are highlighted in blue. The first 3 I will talk about today. I will cover the remaining 4 tomorrow. You can use your mouse to highlight a line in my htm documents. The first three I want to talk about today, have raised their dividends for a second time this year. These stocks are:
BCE (TSX-BCE);
Computer Modelling Group Ltd (TSX-CMG)
Russel Metals (TSX-RUS)
The first stock to talk about is BCE. They raised their dividends by 7.7% in the first quarter of this year. For the third quarter of this year, they have again raised their dividend, this time by 5.1%.
I do have this stock recorded on Quicken and can calculate an IRR, but the problem is that they spun off Nortel in 2000 when the market price on this stock was very high. They also spun off Bell Aliant in 2006. Taking all these stocks in account, I have a total return of 10.24% per year since I have tracked this stock from 1987.
I had initially bought this stock in 1982, but I have only tracked it on quicken since that 1987. If I look at all these stocks for the past 10 years, I have lost 1.4% per year. If I track this stock for 9 years, without Nortel, I have made a return of 7.47% per year. If I look at this stock for the last 9 years without Bell Aliant, I get a total return of 7.59% per year. My spreadsheet for this stock shows similar total return. The dividend has provided just over 3% of this total return.
For my last full blog entries on this stock in April 2011, click here or here.
The next stock is Computer Modelling Group Ltd. This is a small dividend paying company. Because it is small and is basically a Tech company, it would be consider a riskier than average stock. This is not the first time that this stock has raised their dividend more than once in a year. The first dividend increase was in the first quarter of this year and the increase was for 5%. The second increase was the third quarter of this year and the increase was for 4.8%.
Because the dividend was raised 3 times last year, the real increase in dividend payments between last year and this year is 13%. This company is basically paying out all its excess earnings in dividends. They often pay special dividends too. This year was no different with a $.10 special dividend payment.
I bought this stock first in 2008 and have made a total return of some 39% per year on the stock. For my last full blog entries on this stock in June 2011, click here or here.
The last stock to talk about today is Russel Metals. This stock increased their dividends in first quarter also, with an increase of 10%. The second increase was for 9.1%. The overall increase in dividends for this year is 15%. Also, because the 2nd dividend increase occurred in the third quarter, the dividends for next year would be some 4.35% higher than the dividends for this year.
However, Russell Metal is not like the other two companies I have been talking about. They have decreased as well as increased their dividends over the past 10 years. This is because of the business they are in as this company does metal distribution and processing North America.
Since I have bought this stock, I have lost 6.35% per year in capital. I have been making some 4.8% per year on dividends. My loss per year is 1.55%. However, I expect to earn decent money on this stock over the long term.
I bought this stock in 2007 and in 2009, so I have not had it for long. For my last full blog entries on this stock in June 2011, click here or here.
Tomorrow, I will talk about the other stocks I own which had dividend increases in the third quarter. They are:
Davis & Henderson (TSX-DH) down, then up
Royal Bank (TSX-RY)
Saputo Inc. (TSX-SAP)
Alimentation Couche Tard (TSX-ATD.A)
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 know that it is not always possible to plan. Life happens. But if you can delay cashing out stocks you might be better off. Fall is generally the worse time to take money out of a stock portfolio. January is better and between March and May even better. The stock market has a seasonality to it. There is no logical reason for this, but it happens on a pretty consistent basis. Knowing this may help in making plans to take money from a stock portfolio.
Today, I am updating my spreadsheet on dividends. For all my stocks, I have shown in the “11” (for 2011) column, if a company has actually increased their dividend yet for their current financial year ending in December 2011. In the “div” column preceding, I show the percentage increase in the dividends for the company’s financial year ending in 2011. I have also added columns of “Div” and “12” for any of my stocks that have financial years not ending in December 2011 and they are therefore into their 2012 financial year.
For the third quarter of 2011, I had 7 companies increase their dividends. In my spreadsheet, these increases are highlighted in blue. The first 3 I will talk about today. I will cover the remaining 4 tomorrow. You can use your mouse to highlight a line in my htm documents. The first three I want to talk about today, have raised their dividends for a second time this year. These stocks are:
BCE (TSX-BCE);
Computer Modelling Group Ltd (TSX-CMG)
Russel Metals (TSX-RUS)
The first stock to talk about is BCE. They raised their dividends by 7.7% in the first quarter of this year. For the third quarter of this year, they have again raised their dividend, this time by 5.1%.
I do have this stock recorded on Quicken and can calculate an IRR, but the problem is that they spun off Nortel in 2000 when the market price on this stock was very high. They also spun off Bell Aliant in 2006. Taking all these stocks in account, I have a total return of 10.24% per year since I have tracked this stock from 1987.
I had initially bought this stock in 1982, but I have only tracked it on quicken since that 1987. If I look at all these stocks for the past 10 years, I have lost 1.4% per year. If I track this stock for 9 years, without Nortel, I have made a return of 7.47% per year. If I look at this stock for the last 9 years without Bell Aliant, I get a total return of 7.59% per year. My spreadsheet for this stock shows similar total return. The dividend has provided just over 3% of this total return.
For my last full blog entries on this stock in April 2011, click here or here.
The next stock is Computer Modelling Group Ltd. This is a small dividend paying company. Because it is small and is basically a Tech company, it would be consider a riskier than average stock. This is not the first time that this stock has raised their dividend more than once in a year. The first dividend increase was in the first quarter of this year and the increase was for 5%. The second increase was the third quarter of this year and the increase was for 4.8%.
Because the dividend was raised 3 times last year, the real increase in dividend payments between last year and this year is 13%. This company is basically paying out all its excess earnings in dividends. They often pay special dividends too. This year was no different with a $.10 special dividend payment.
I bought this stock first in 2008 and have made a total return of some 39% per year on the stock. For my last full blog entries on this stock in June 2011, click here or here.
The last stock to talk about today is Russel Metals. This stock increased their dividends in first quarter also, with an increase of 10%. The second increase was for 9.1%. The overall increase in dividends for this year is 15%. Also, because the 2nd dividend increase occurred in the third quarter, the dividends for next year would be some 4.35% higher than the dividends for this year.
However, Russell Metal is not like the other two companies I have been talking about. They have decreased as well as increased their dividends over the past 10 years. This is because of the business they are in as this company does metal distribution and processing North America.
Since I have bought this stock, I have lost 6.35% per year in capital. I have been making some 4.8% per year on dividends. My loss per year is 1.55%. However, I expect to earn decent money on this stock over the long term.
I bought this stock in 2007 and in 2009, so I have not had it for long. For my last full blog entries on this stock in June 2011, click here or here.
Tomorrow, I will talk about the other stocks I own which had dividend increases in the third quarter. They are:
Davis & Henderson (TSX-DH) down, then up
Royal Bank (TSX-RY)
Saputo Inc. (TSX-SAP)
Alimentation Couche Tard (TSX-ATD.A)
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, October 21, 2011
Reasonable Stock Price
The first rule of investing is “do not invest in things you do not understand”. For dividend paying companies this could translate into do not invest in a company where you do not understand how they make their money.
In regards to Dividend Payout Ratios, do not invest if a company cannot afford their dividends. I am not talking about one losing quarter or year, I am talking about when a company time and time again has dividend payouts it cannot afford, or continues to pay dividends when it appears that they can no longer afford to pay at the current rate or even pay any. Pay special attention to DPR in references to Cash Flow.
Another mistake investors make is to look only at portfolio value. You should be looking at cash flow. It is only cash flow that you can spend.
Of course, the thing I want to talk about today is paying a reasonable price for a stock, and hence the title of this article. You are lucky if you pay a really low price for a stock, but although this is very nice, it is not what is always possible. However, I do suggest that if you cannot pay a reasonable price, you should forgo buying a stock and for a more reasonably priced one.
What I look at to determine is a stock price is reasonable is Price/Earnings Ratio, Graham Price, Dividend Yield and Price/Book Value Ratio. You have to look at relative as well as absolute price. I personally think that relative ratios are more important than absolute ratios. I consider absolute ratios only when the relative ratios are way out of line. Other people use different tests than I do, but I am comfortable with the method I have.
Looking at the P/E Ratio to determine if a stock is at a good price is one of the most common things that investors do. Looking at a 5 and 10 year median P/E Ratio can give you a good idea what is considered to be a relatively high or low current stock price. A reasonable P/E ratio can vary by stock, the sort of company a stock is or type of market we are in.
A particular stock may have a premium or higher P/E Ratio than others in its particular industry. This would be because investors think a stock is a “best in class” stock. An example of this would be Enbridge (TSX-ENB), which some analysts have suggested it should have a higher P/E than other pipeline companies. Tech stocks often have higher P/E Ratios than other companies. Our current market is quite low currently, but some companies and sectors are harder hit than others.
To see yesterday’s P/E Ratio and Dividend yield for the TSX index, go to TSX Money, click on TSX Market Activity and then “Indices & Constituents”. Reuters is also an interesting site as it gives, not only a stocks P/E Ratio, but also the current P/E Ratio for the Industry and Sector a stock is in. See Reuters. For Canadian Stocks, put “TO” after stock symbol, so Emera (TSX-EMA) would be EMA.TO. (Please note that Reuters is very much American market orientated.)
I have already talked about P/E Ratios. See my site for information on Price/Earnings Ratio. As I understand Price/Earnings Ratios, 10 and below is consider low, 15 – 20 is considered normal and 25 or 30 is considered high. This is just a rule of thumb. I generally compare a stock’s current P/E Ratios, using earning estimates for the year with the 5 and 10 year median P/E Ratio of a stock. I like a stock to be around the median P/E Ratio and this I think would show a reasonable price.
The Graham Price is named after Benjamin Graham who is famous for writing book called “The Intelligent Investor”. I have also written about this subject before see my site for more information on the Graham price. Here again, what I like to see, for a reasonable stock price is the current difference between the stock price and Graham Price to be close to the median difference. So, if the 10 year median difference between the stock price and the Graham Price is 5% and there is a 1% current difference, the stock price would be reasonable. On an absolute basis, you would want a stock price at or around the Graham Price.
The next test I use is the P/B Ratio. I look at the 10 year median P/B Ratio and compare it to the current P/B Ratio. Ideally, you would want to see the current P/B Ratio around the same as the current P/B Ratio which would point to a reasonable stock price. A good or cheap stock price would be if the current P/B Ratio is 80% of the 10 year median P/B Ratio. On an absolute basis, a current P/B Ratio of 1.00 shows a very good stock price as it means that the stock price is equal to the book value of the company.
The last thing that I look at is the Dividend Yield. Dividend yield depends on the philosophy of a company. Some like to and can give out good dividends. The problem if the dividend is too high is that the company will have no money to expand. However, if the company is a mature company, it may have no need for expansion money and can distribute most of the cash it earns.
Personally, I like to see a company’s dividend yield that is higher than the 5 year median dividend yield and this would point to a reasonable current stock price. A very good stock price would be when the dividend yield is higher than the 10 year median high dividend yield.
A couple of points I look to make here. I also like companies that increase their dividends consistently (but not necessarily yearly) more than the rate of inflation. (Background inflation tends to be at 3% per year; so basically, I want a company with 5 and 10 year dividend growth at 3%, at the least.) However, if a company is paying out a dividend yield of less than 1%, I would question if the company is really a dividend paying company. On the other hand, if the yield is too high, you would have to wonder if the dividend is sustainable.
Before you buy a stock, you need to check out Dividend Payout Ratios. Analysts talk about DPR for Earnings at 60% and below and DPR for Free Cash Flow at 80% and below and 40% or lower for Cash Flow. The best companies have cash flows that are higher than earnings. I have talked about DPRs before, see my site for more information on Dividend Payout Ratios.
Another thing you might want to consider is the company’s debt rations. I have also talked about this before. See my site for further information on Debt Ratios.
Another thing that I should point out is that the current P/E Ratio and the current Graham price use the earnings estimates for this year in their calculations. The Dividend yield and the P/B Ratio use no estimates.
I do not wait around for a stock I like to get to a reasonable price. If I want to buy, I will buy something else. There is always something at a reasonable price.
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.
In regards to Dividend Payout Ratios, do not invest if a company cannot afford their dividends. I am not talking about one losing quarter or year, I am talking about when a company time and time again has dividend payouts it cannot afford, or continues to pay dividends when it appears that they can no longer afford to pay at the current rate or even pay any. Pay special attention to DPR in references to Cash Flow.
Another mistake investors make is to look only at portfolio value. You should be looking at cash flow. It is only cash flow that you can spend.
Of course, the thing I want to talk about today is paying a reasonable price for a stock, and hence the title of this article. You are lucky if you pay a really low price for a stock, but although this is very nice, it is not what is always possible. However, I do suggest that if you cannot pay a reasonable price, you should forgo buying a stock and for a more reasonably priced one.
What I look at to determine is a stock price is reasonable is Price/Earnings Ratio, Graham Price, Dividend Yield and Price/Book Value Ratio. You have to look at relative as well as absolute price. I personally think that relative ratios are more important than absolute ratios. I consider absolute ratios only when the relative ratios are way out of line. Other people use different tests than I do, but I am comfortable with the method I have.
Looking at the P/E Ratio to determine if a stock is at a good price is one of the most common things that investors do. Looking at a 5 and 10 year median P/E Ratio can give you a good idea what is considered to be a relatively high or low current stock price. A reasonable P/E ratio can vary by stock, the sort of company a stock is or type of market we are in.
A particular stock may have a premium or higher P/E Ratio than others in its particular industry. This would be because investors think a stock is a “best in class” stock. An example of this would be Enbridge (TSX-ENB), which some analysts have suggested it should have a higher P/E than other pipeline companies. Tech stocks often have higher P/E Ratios than other companies. Our current market is quite low currently, but some companies and sectors are harder hit than others.
To see yesterday’s P/E Ratio and Dividend yield for the TSX index, go to TSX Money, click on TSX Market Activity and then “Indices & Constituents”. Reuters is also an interesting site as it gives, not only a stocks P/E Ratio, but also the current P/E Ratio for the Industry and Sector a stock is in. See Reuters. For Canadian Stocks, put “TO” after stock symbol, so Emera (TSX-EMA) would be EMA.TO. (Please note that Reuters is very much American market orientated.)
I have already talked about P/E Ratios. See my site for information on Price/Earnings Ratio. As I understand Price/Earnings Ratios, 10 and below is consider low, 15 – 20 is considered normal and 25 or 30 is considered high. This is just a rule of thumb. I generally compare a stock’s current P/E Ratios, using earning estimates for the year with the 5 and 10 year median P/E Ratio of a stock. I like a stock to be around the median P/E Ratio and this I think would show a reasonable price.
The Graham Price is named after Benjamin Graham who is famous for writing book called “The Intelligent Investor”. I have also written about this subject before see my site for more information on the Graham price. Here again, what I like to see, for a reasonable stock price is the current difference between the stock price and Graham Price to be close to the median difference. So, if the 10 year median difference between the stock price and the Graham Price is 5% and there is a 1% current difference, the stock price would be reasonable. On an absolute basis, you would want a stock price at or around the Graham Price.
The next test I use is the P/B Ratio. I look at the 10 year median P/B Ratio and compare it to the current P/B Ratio. Ideally, you would want to see the current P/B Ratio around the same as the current P/B Ratio which would point to a reasonable stock price. A good or cheap stock price would be if the current P/B Ratio is 80% of the 10 year median P/B Ratio. On an absolute basis, a current P/B Ratio of 1.00 shows a very good stock price as it means that the stock price is equal to the book value of the company.
The last thing that I look at is the Dividend Yield. Dividend yield depends on the philosophy of a company. Some like to and can give out good dividends. The problem if the dividend is too high is that the company will have no money to expand. However, if the company is a mature company, it may have no need for expansion money and can distribute most of the cash it earns.
Personally, I like to see a company’s dividend yield that is higher than the 5 year median dividend yield and this would point to a reasonable current stock price. A very good stock price would be when the dividend yield is higher than the 10 year median high dividend yield.
A couple of points I look to make here. I also like companies that increase their dividends consistently (but not necessarily yearly) more than the rate of inflation. (Background inflation tends to be at 3% per year; so basically, I want a company with 5 and 10 year dividend growth at 3%, at the least.) However, if a company is paying out a dividend yield of less than 1%, I would question if the company is really a dividend paying company. On the other hand, if the yield is too high, you would have to wonder if the dividend is sustainable.
Before you buy a stock, you need to check out Dividend Payout Ratios. Analysts talk about DPR for Earnings at 60% and below and DPR for Free Cash Flow at 80% and below and 40% or lower for Cash Flow. The best companies have cash flows that are higher than earnings. I have talked about DPRs before, see my site for more information on Dividend Payout Ratios.
Another thing you might want to consider is the company’s debt rations. I have also talked about this before. See my site for further information on Debt Ratios.
Another thing that I should point out is that the current P/E Ratio and the current Graham price use the earnings estimates for this year in their calculations. The Dividend yield and the P/B Ratio use no estimates.
I do not wait around for a stock I like to get to a reasonable price. If I want to buy, I will buy something else. There is always something at a reasonable price.
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, October 20, 2011
Oil and Gas Companies
I guess the question is, are oil and gas companies good long term investments, especially for investors that want dividend income? There seems to be two types of companies. Ones like Suncor Energy (TSX-SU) that pays very low (around ½ of 1%) but increasing dividends. You would make most of your money from Capital Gain. Then there are ones like Canadian Oil Sands (TSX-COS) that give you very good dividends, a a large part of what you get in returns is dividends. However, for these company, dividends will fluctuate with price of oil and gas.
The following are the companies in the oil and gas industry that I follow. For all the stock I follow, I have shown the link to my blog entries. The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For AltaGas would be the symbol of “ALA.TO”.
AltaGas Ltd (TSX-ALA). This company was an income trust. Dividend yield is good, and after the decrease on change to corporation, the company expects the dividends to be stable or increase. DPRs are high, especially for EPS, but are coming down. Growth is good over the past 10 years, but not past 5 years. For my blog entries dated April 2011, click here or here.
ARC Resources Ltd. (TSX-ARX). This company was an income trust. Dividend yield is good, but will fluctuate with price of oil and gas. DPRs are high for EPS, but are coming down. Neither 5 nor 10 year growth is good for revenue, earnings or cash flow. For my blog entries dated September 2011, click here or here.
Canadian Natural Resources (TSX-CNQ). Dividend yield is very low, but grows. Like Suncor, the dividends are so low, I wonder about calling it a dividend paying stock. DPRs are very low. Growth is better for 10 years than 5 years, but both shows growth. Also, like Suncor, there has been an awful lot of insider selling over past year. For my blog entries dated July 2011, click here or here.
Canadian Oil Sands Trust (TSX-COS). This company was an income trust. Dividend yield is good, but will fluctuate with price of oil. DPRs are currently good. Good growth over last 10 years, but not such much for last 5 years. For my blog entries dated blog dated Oct 2011, click here or here.
Cenovus Energy Inc (TSX-CVE). Dividend yield is not bad and it has grown over past 5 and 10 years. The DPR is fine. Revenues have been growing, but EPS and cash flow have not. However, there has been not negative EPS or Cash Flows. For my blog entries dated October 2011, click here or here.
EnCana Corp (TSX-ECA). Dividend yield is good, but it has fluctuated. But dividends have also grown over past 5 and 10 years. The DPR is mostly fine; however, the DPR for EPS will be high over the next couple of years because earnings are expected to be low. DPR for cash for is just fine. There has been some growth, especially over the past 10 years. For my blog entries dated October 2011, click here or here.
Ensign Energy Services (TSX-ESI). This is an oil and gas servicing company. Dividend yield is decent and is growing very well. The DPR is good. There has been growth over the past 10 years, but not much over the past 5 years. For my blog entries dated October 2011, click here or here.
Husky Energy (TSX-HSE). Dividend yield quite good and is growing, although it also does fluctuate with the price of oil. The DPR is fine. Revenues have been growing over the past 5 and 10 years. However earnings and cash flow have grown over the past 10 years, not over the past 5 years. For my blog entries dated July 2011, click here or here.
Keyera Corp (TSX-KEY), This company was an income trust. Dividends are good and they have been increasing. DPR is currently fine, but the one for earnings have been rather high in the past. Revenue, earnings and cash flow have all been growing. For my blog entries dated August 2011, click here or here
Penn West Petroleum (TSX-PWT. Dividends are good on this company, but they have fluctuated a great deal. DPR is quite high looking at from an EPS standpoint; however they are improving greatly from a cash flow standpoint. There hasn't been much growth over past 5 and 10 years for revenues, earnings or cash flow. However, there was only one year of negative EPS and none for cash flow. They have an awful lot of insider selling over past year. For my blog entries dated Oct 2011, click here or here.
Suncor Energy (TSX-SU). Not really a dividend paying company has the dividend yield is usually below 1%. The good thing about the dividend is that it does not fluctuate with the price of oil. DPR is at a great low level for both EPS and cash flow. There has been good growth in revenues and earnings, but not for cash flow. However, there are no years of negative cash flows. This company had a lot of insider selling over past year. For my blog entries dated Oct 2011, click here or here.
The site Canadian Oil Stock.ca talks about some of these oil and gas stocks.
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 following are the companies in the oil and gas industry that I follow. For all the stock I follow, I have shown the link to my blog entries. The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For AltaGas would be the symbol of “ALA.TO”.
AltaGas Ltd (TSX-ALA). This company was an income trust. Dividend yield is good, and after the decrease on change to corporation, the company expects the dividends to be stable or increase. DPRs are high, especially for EPS, but are coming down. Growth is good over the past 10 years, but not past 5 years. For my blog entries dated April 2011, click here or here.
ARC Resources Ltd. (TSX-ARX). This company was an income trust. Dividend yield is good, but will fluctuate with price of oil and gas. DPRs are high for EPS, but are coming down. Neither 5 nor 10 year growth is good for revenue, earnings or cash flow. For my blog entries dated September 2011, click here or here.
Canadian Natural Resources (TSX-CNQ). Dividend yield is very low, but grows. Like Suncor, the dividends are so low, I wonder about calling it a dividend paying stock. DPRs are very low. Growth is better for 10 years than 5 years, but both shows growth. Also, like Suncor, there has been an awful lot of insider selling over past year. For my blog entries dated July 2011, click here or here.
Canadian Oil Sands Trust (TSX-COS). This company was an income trust. Dividend yield is good, but will fluctuate with price of oil. DPRs are currently good. Good growth over last 10 years, but not such much for last 5 years. For my blog entries dated blog dated Oct 2011, click here or here.
Cenovus Energy Inc (TSX-CVE). Dividend yield is not bad and it has grown over past 5 and 10 years. The DPR is fine. Revenues have been growing, but EPS and cash flow have not. However, there has been not negative EPS or Cash Flows. For my blog entries dated October 2011, click here or here.
EnCana Corp (TSX-ECA). Dividend yield is good, but it has fluctuated. But dividends have also grown over past 5 and 10 years. The DPR is mostly fine; however, the DPR for EPS will be high over the next couple of years because earnings are expected to be low. DPR for cash for is just fine. There has been some growth, especially over the past 10 years. For my blog entries dated October 2011, click here or here.
Ensign Energy Services (TSX-ESI). This is an oil and gas servicing company. Dividend yield is decent and is growing very well. The DPR is good. There has been growth over the past 10 years, but not much over the past 5 years. For my blog entries dated October 2011, click here or here.
Husky Energy (TSX-HSE). Dividend yield quite good and is growing, although it also does fluctuate with the price of oil. The DPR is fine. Revenues have been growing over the past 5 and 10 years. However earnings and cash flow have grown over the past 10 years, not over the past 5 years. For my blog entries dated July 2011, click here or here.
Keyera Corp (TSX-KEY), This company was an income trust. Dividends are good and they have been increasing. DPR is currently fine, but the one for earnings have been rather high in the past. Revenue, earnings and cash flow have all been growing. For my blog entries dated August 2011, click here or here
Penn West Petroleum (TSX-PWT. Dividends are good on this company, but they have fluctuated a great deal. DPR is quite high looking at from an EPS standpoint; however they are improving greatly from a cash flow standpoint. There hasn't been much growth over past 5 and 10 years for revenues, earnings or cash flow. However, there was only one year of negative EPS and none for cash flow. They have an awful lot of insider selling over past year. For my blog entries dated Oct 2011, click here or here.
Suncor Energy (TSX-SU). Not really a dividend paying company has the dividend yield is usually below 1%. The good thing about the dividend is that it does not fluctuate with the price of oil. DPR is at a great low level for both EPS and cash flow. There has been good growth in revenues and earnings, but not for cash flow. However, there are no years of negative cash flows. This company had a lot of insider selling over past year. For my blog entries dated Oct 2011, click here or here.
The site Canadian Oil Stock.ca talks about some of these oil and gas stocks.
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, October 19, 2011
Suncor Energy 2
I do not own this stock (TSX-SU). This stock has a current dividend yield of 1.47%, which is quite high for this stock. The 5 year median dividend yield is much lower at .65% and the 10 year median dividend yield is even lower at .4%. This is a stock that raises it dividend each year, at least lately, but has a very low yield.
When I look at insider trading, I find insider selling of $55.5M and net insider selling at $54.5M. An awful lot of insiders CEO, CFO, Officers and other officers of the company have lots and lots of options. The insider selling occurred mostly when the stock was peaking in the early part of 2011 and it seems to be the selling of stock options. This company is currently worth about $47B, so insider selling is worth way less than 1% of the market cap of this company at .12%.
According to Reuters, the CEO, Richard George got just over 1.5M shares in options compensation that is worth some $115M. See Reuters page on this stock. Some 808 institutions own 69% of the stock of this company. Over the past 3 months they have increased their investment in this company marginally. (See my site for information on Insider Trading.)
The 10 year low median Price/Earnings Ratio is 19.82 and the 10 year high P/E Ratio is 29.99. The current P/E Ratio at 10.07 is relatively low. It is also a low absolute P/E Ratio. This suggests a rather low stock price.
I get a Graham price of $39.72. The current stock price of $30.22 is some 24% lower. The Graham Price and low stock price median difference over the past 10 years is a stock price 19% above the Graham Price. This difference points to a current good stock price. Also, it is good to see a stock price below the Graham Price.
I get a 10 year median Price/Book Value Ratio of 2.00 and a current P/B Ratio of 1.29. The current P/B ratio is some 65% below the 10 year median ratio. This difference also points to a good current stock price. I get a current dividend yield of 1.46% and a 5 year median dividend yield of .65%. This is a rather high dividend yield for this stock as the yield is usually less than ½ of 1%.
When the stock price is very low like this one is, you must look for a reason. It could be that the stock is out of favor for a good reason. However, in this case, it is probably that this stock market is over all low.
When I look for analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Even the analysts who gave this a Hold recommendation think it is a good stock, they just do not think that this company or any oil company will revive in the near term. Analysts’ are calling the stock deeply discounted, very cheap and beaten up. Quite a number of analysts think this company is a good buy. Although a number of Hold recommendations feel that it is not the right time now to buy this stock.
Suncor Energy Inc. is an integrated energy company. Suncor's operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. Suncor is also developing a growing renewable energy portfolio. Their international and offshore business includes operations in the North Sea (United Kingdom, Netherlands and Norway) and the East Coast of Canada. They are also in Libya, Syria and Trinidad and Tobago. Its web site is here Suncor. See my spreadsheet at su.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 insider selling of $55.5M and net insider selling at $54.5M. An awful lot of insiders CEO, CFO, Officers and other officers of the company have lots and lots of options. The insider selling occurred mostly when the stock was peaking in the early part of 2011 and it seems to be the selling of stock options. This company is currently worth about $47B, so insider selling is worth way less than 1% of the market cap of this company at .12%.
According to Reuters, the CEO, Richard George got just over 1.5M shares in options compensation that is worth some $115M. See Reuters page on this stock. Some 808 institutions own 69% of the stock of this company. Over the past 3 months they have increased their investment in this company marginally. (See my site for information on Insider Trading.)
The 10 year low median Price/Earnings Ratio is 19.82 and the 10 year high P/E Ratio is 29.99. The current P/E Ratio at 10.07 is relatively low. It is also a low absolute P/E Ratio. This suggests a rather low stock price.
I get a Graham price of $39.72. The current stock price of $30.22 is some 24% lower. The Graham Price and low stock price median difference over the past 10 years is a stock price 19% above the Graham Price. This difference points to a current good stock price. Also, it is good to see a stock price below the Graham Price.
I get a 10 year median Price/Book Value Ratio of 2.00 and a current P/B Ratio of 1.29. The current P/B ratio is some 65% below the 10 year median ratio. This difference also points to a good current stock price. I get a current dividend yield of 1.46% and a 5 year median dividend yield of .65%. This is a rather high dividend yield for this stock as the yield is usually less than ½ of 1%.
When the stock price is very low like this one is, you must look for a reason. It could be that the stock is out of favor for a good reason. However, in this case, it is probably that this stock market is over all low.
When I look for analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Even the analysts who gave this a Hold recommendation think it is a good stock, they just do not think that this company or any oil company will revive in the near term. Analysts’ are calling the stock deeply discounted, very cheap and beaten up. Quite a number of analysts think this company is a good buy. Although a number of Hold recommendations feel that it is not the right time now to buy this stock.
Suncor Energy Inc. is an integrated energy company. Suncor's operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, and product marketing under the Petro-Canada brand. Suncor is also developing a growing renewable energy portfolio. Their international and offshore business includes operations in the North Sea (United Kingdom, Netherlands and Norway) and the East Coast of Canada. They are also in Libya, Syria and Trinidad and Tobago. Its web site is here Suncor. See my spreadsheet at su.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.
Subscribe to:
Posts (Atom)