I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When I bought this stock in 2008, the stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
There is not much in the way of insider trading. Insider buying is at $1M and there is no insider selling. Insiders not only have stock options, but also have Performance Share Units and Deferred Share Unit. There is insider ownership with the co-chairman having shares worth around $8.4M, Ka-Shing Li having shares worth around $10.3B (36%) and Hutchison Whampoa Luxembourg Holdings having shares worth around 9.8B (34%).
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.86, 16.54 and 18.22. These are higher than the corresponding 10 year values. The current P/E Ratio is 13.10 based on a stock price of $36.68 and 2014 EPS estimate of $2.80. This stock price test suggests that the stock is currently cheap. However, measured against the 10 year high median P/E Ratio of 14.10, this stock would not come off as cheap.
I get a Graham Price of $36.01. The 10 year low, median and high median Price/Graham Price Ratios are 0.87, 1.10 and 1.30. The current P/GP Ratio is 1.02. This stock price test suggests that the stock price is reasonable.
The 10 year median Price/Book Value per Share ratio is 1.82. The current P/B Ratio is 1.78 a value some 2% lower. The current P/B Ratio is based on a stock price of $36.68 and a current BVPS of $20.59. This stock price test suggests that the stock price is reasonable.
The 5 year median dividend yield is 4.59% and the current dividend yield 3.27% is some 28% lower and suggest that the stock price is expensive. The historical average dividend yield is 4.06% and still is some 19% higher than the current dividend yield. If you look at the median dividend yield it is 3.92% and still some 16.5% higher than the current one. By these stock price tests, the stock price is expensive.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. The 12 month stock price target is $38.50. This implies a total return of 8.23% with 4.96% from capital gains and 3.27% from dividends. This is not a ringing endorsement for a buy recommendation.
The Motley Fool site has a recent favorable review on this stock. Another article at the Motley Fool site talks about 5 reasons to invest in Husky. A recent article in the Calgary Herald talks about a recent rise in Husky stock.
In looking for other analysis on this stock I came across this site which talks about Husky doing share buybacks. However, I had no record of this so I went back to the statements to look and I could find no mention of share buybacks in the annual statements?
Most tests that I have looked show that the stock price is reasonable to expensive. In looking at technical analysis on Bar Chart short, median and long term indicators generally are a Buy. See my spreadsheet at hse.htm.
This is the second of two parts. The first part was posted on Monday June 2, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas.
Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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, June 3, 2014
Monday, June 2, 2014
Husky Energy Inc.
On my other blog I am today writing about possible cheap dividend stocks for June 2014 continue... I am also doing a review of DHX Media Ltd. (TSX-DHX, OTC-DHXMF) today ...continue...
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When selling some of my SNC-Lavalin in 2008 I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
This is an oil and gas company which has a decent yield. The current yield is 3.27%. The 5 year median dividend yield is 4.59%. Often with these sorts of stocks, the dividends go down as well as up. Over the past 5 years dividends have decreased by 5.1% per year. However, over the past 10 years, dividends are up by 12.49% per year.
I have not had this stock that long (only since 2008). My total return is at 5.31% per year with 2.02% per year from capital gains and 3.29% from dividends. The total return on this stock over the past 5 and 10 years is at 7.75% and 14.86% per year. The portion of this total return attributable to capital gains is at 4.05% and 7.91% per year over these periods. The portion of this total return attributable to dividends is at 3.70% and 6.94% per year over these periods.
The outstanding shares have increased at the rate of 3% and 1.5% per year over the past 5 and 10 years. Shares have increased due Share Issues, Stock Dividends (in place of dividends) and Stock Options. Growth in Revenues, Earnings and Cash Flow has been good over the last 10 years, but not so much over the past 5 year.
Revenue per Share is up by 5.7% and 12% per year over the past 5 and 10 years if you look at the 5 year running averages. EPS is down by 9.1% and up by 8.7% per year over the past 5 and 10 years if you look at the 5 year running averages. Cash Flow per Share is down by 3.8% and up by 7.3% per year over the past 5 and 10 year using the 5 year running averages.
For Return on Equity the rate has been below 10% 3 times in the last 10 years and all these have occurred within the last 5 years. The ROE for the year ending in 2013 was 9.2% and the 5 year median ROE is also 9.2%. The ROE on comprehensive income is a bit better with the ROE for 2013 at 10.4% and the 5 year median also at 10.4%.
The Liquidity Ratio for 2013 is 1.18. This is a little low. If you add in cash flow after dividends it becomes 2.01. The Debt Ratio is quite good at 2.19. Leverage and Debt/Equity Ratios are also quite good at 1.84 and 0.84.
I have little of my investment in oil and gas stocks and this is my main one. I think it will be fine over the longer term and I will hold on to what I have. This investment has been fine, but not great. See my spreadsheet at hse.htm.
This is the first of two parts. The second part will be posted on Tuesday, June 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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 own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When selling some of my SNC-Lavalin in 2008 I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
This is an oil and gas company which has a decent yield. The current yield is 3.27%. The 5 year median dividend yield is 4.59%. Often with these sorts of stocks, the dividends go down as well as up. Over the past 5 years dividends have decreased by 5.1% per year. However, over the past 10 years, dividends are up by 12.49% per year.
I have not had this stock that long (only since 2008). My total return is at 5.31% per year with 2.02% per year from capital gains and 3.29% from dividends. The total return on this stock over the past 5 and 10 years is at 7.75% and 14.86% per year. The portion of this total return attributable to capital gains is at 4.05% and 7.91% per year over these periods. The portion of this total return attributable to dividends is at 3.70% and 6.94% per year over these periods.
The outstanding shares have increased at the rate of 3% and 1.5% per year over the past 5 and 10 years. Shares have increased due Share Issues, Stock Dividends (in place of dividends) and Stock Options. Growth in Revenues, Earnings and Cash Flow has been good over the last 10 years, but not so much over the past 5 year.
Revenue per Share is up by 5.7% and 12% per year over the past 5 and 10 years if you look at the 5 year running averages. EPS is down by 9.1% and up by 8.7% per year over the past 5 and 10 years if you look at the 5 year running averages. Cash Flow per Share is down by 3.8% and up by 7.3% per year over the past 5 and 10 year using the 5 year running averages.
For Return on Equity the rate has been below 10% 3 times in the last 10 years and all these have occurred within the last 5 years. The ROE for the year ending in 2013 was 9.2% and the 5 year median ROE is also 9.2%. The ROE on comprehensive income is a bit better with the ROE for 2013 at 10.4% and the 5 year median also at 10.4%.
The Liquidity Ratio for 2013 is 1.18. This is a little low. If you add in cash flow after dividends it becomes 2.01. The Debt Ratio is quite good at 2.19. Leverage and Debt/Equity Ratios are also quite good at 1.84 and 0.84.
I have little of my investment in oil and gas stocks and this is my main one. I think it will be fine over the longer term and I will hold on to what I have. This investment has been fine, but not great. See my spreadsheet at hse.htm.
This is the first of two parts. The second part will be posted on Tuesday, June 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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.
DHX Media Ltd.
On my other blog I am today writing about possible cheap dividend stocks for June 2014 continue... On this blog I am today writing about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) continue...
I do not own this stock of DHX Media Ltd. (TSX-DHX, OTC-DHXMF). I took a look at the stock after reading a favorable report at CANTECH. There was also a favorable report from Global Maxfin Capital..
I looked at the basic stock and it is a small cap with a dividend. Although the dividend yield is low at 0.86%, it does have a dividend. I wanted to use the cash I had in my TFSA to buy some small cap stock with a dividend, so this stock did intrigue me.
First I do not know why they started to pay a dividend. They clearly cannot afford to do so. They are paying out in 2013 a lot more than they are earning. I realized that in 2012 they had a lot of surplus cash. However, at the end of 2013 their surplus cash has all but disappeared. At the end of the third quarter they again had a lot of surplus cash, but it was from selling more shares. The number of shares has increased by 88% from the end of June 2013 to the end of the third quarter.
The revenues have been rising, but they cannot consistently earn profit nor cash flow from this rising of revenues. However, if you look at revenue per share, this value has been going down. The decline in revenue per share over the past 5 years is 5%. If you look at 5 year running average, the decline is 0.6%. So basically revenue per share has gone nowhere.
So at worse the company cannot grow revenue per share or EPS or CFPS and at best they are inconsistent. If you look at the 12 month period to the end of the third quarter compared to the 12 month period to the end of June 2012, the Revenue, EPS are going the right direction. The problem with Revenue is that the Revenue per Share using the estimates has gone down because of the increase in shares. Cash Flow has not improved.
The stock may take as stocks take off for all sorts of reasons. Not all the reasons for stocks taking off are a good sign. Some just take off because people believe they will. But this will not last without some proper supporting financials.
I do not see this as a stock for the long term as a good long term investment must have something to support it like increasing Revenue per Share, EPS CFPS. I do not believe that this stock is a long term investment, so it is a stock I will not buy. See my spreadsheet at dhx.htm.
DHX Media is a leader in the creation, production and marketing of family entertainment. DHX Media owns, markets and distributes over 10,000 episodes of entertainment programming worldwide and licenses its owned properties through its dedicated consumer products business. Its web site is here DHX Media.
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 DHX Media Ltd. (TSX-DHX, OTC-DHXMF). I took a look at the stock after reading a favorable report at CANTECH. There was also a favorable report from Global Maxfin Capital..
I looked at the basic stock and it is a small cap with a dividend. Although the dividend yield is low at 0.86%, it does have a dividend. I wanted to use the cash I had in my TFSA to buy some small cap stock with a dividend, so this stock did intrigue me.
First I do not know why they started to pay a dividend. They clearly cannot afford to do so. They are paying out in 2013 a lot more than they are earning. I realized that in 2012 they had a lot of surplus cash. However, at the end of 2013 their surplus cash has all but disappeared. At the end of the third quarter they again had a lot of surplus cash, but it was from selling more shares. The number of shares has increased by 88% from the end of June 2013 to the end of the third quarter.
The revenues have been rising, but they cannot consistently earn profit nor cash flow from this rising of revenues. However, if you look at revenue per share, this value has been going down. The decline in revenue per share over the past 5 years is 5%. If you look at 5 year running average, the decline is 0.6%. So basically revenue per share has gone nowhere.
So at worse the company cannot grow revenue per share or EPS or CFPS and at best they are inconsistent. If you look at the 12 month period to the end of the third quarter compared to the 12 month period to the end of June 2012, the Revenue, EPS are going the right direction. The problem with Revenue is that the Revenue per Share using the estimates has gone down because of the increase in shares. Cash Flow has not improved.
The stock may take as stocks take off for all sorts of reasons. Not all the reasons for stocks taking off are a good sign. Some just take off because people believe they will. But this will not last without some proper supporting financials.
I do not see this as a stock for the long term as a good long term investment must have something to support it like increasing Revenue per Share, EPS CFPS. I do not believe that this stock is a long term investment, so it is a stock I will not buy. See my spreadsheet at dhx.htm.
DHX Media is a leader in the creation, production and marketing of family entertainment. DHX Media owns, markets and distributes over 10,000 episodes of entertainment programming worldwide and licenses its owned properties through its dedicated consumer products business. Its web site is here DHX Media.
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, May 30, 2014
Automodular Corp. 2
I own this stock of Automodular Corp. (TSX-AM, OTC-AMZKF). I went looking for some dividend paying small cap to soak up extra money in the TFSA. This is one of the stocks that I found.
The insider trading report for the past year shows $0.4M of insider buying and $0.4M of insider selling. There is a bit of extra selling so there is a net of sales. There is some insider ownership with a director owning around 13% of the outstanding shares worth around $6.3M and the CEO owning 2% of the company worth around $1.0M. Also Franklin Templeton Investments Corp. owns around 4.5M shares worth around $11M and around 23% of the outstanding shares.
It is hard to do a price analysis based on Price/Earnings per Share Ratios. The P/E has been very low lately range from 1.33 to 4.69. The current one is probably around 4.33, a very low P/E also. This is based on a current stock price of $2.25 and the 12 month EPS of $0.50 ending at the first quarter of 2014.
I get a current Graham Price of $5.47. The 10 year low, median and high median Price/Graham Price Ratios are 0.21, 0.41 and 0.61. These are very low numbers. The current P/GP Ratio is 0.41 based on a stock price $2.25. This stock price test would suggest that the stock price is relatively reasonable. On an absolute basis, any P/GP Ratio at 1.00 and below says that the stock is at a very good price.
I get a 10 year Price/Book Value per Share Ratio of 0.90. The current P/B Ratio is 0.96 a value some 7% higher. The P/B Ratios are quite low. This stock price test would suggest that the stock price is relatively reasonable. On an absolute basis, a P/B Ratio below 1.00 says that the stock is cheap.
The 5 year median dividend yield is 10.56% and the current dividend yield is about 1% higher at 10.67%. This stock price test would suggest that the stock price is relatively reasonable. The dividend yield is quite high. On an absolute basis, a dividend yield of 10.56% says that the stock is cheap.
On an historical basis, the average dividend yield is 6.5% a value some 64% below today's dividend yield. The historical median dividend yield is 5.45% a value even lower and some 95% lower than today dividend yield. This stock price testing says that the stock is relatively cheap.
There is a wonderful analysis of this company at Wikinvest. There is another good article on this stock at Seeking Alpha by Alec Mazo. Elliot Luchansky on Guru Focus give this stock a Strong Buy rating and a 12 month stock price of $5.65.
I am very interested to see how this all plays out. I am keeping my shares because that will make what happens to the company all the more interesting to me. Both the Wikinvest and Seeking Alpha analysis see this stock producing a nice return for shareholders. We will see. See my spreadsheet at am.htm.
This is the second of two parts. The first part was posted on Thursday, May 30, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Automodular Corporation is a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. Its web site is here Automodular Corp.
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 report for the past year shows $0.4M of insider buying and $0.4M of insider selling. There is a bit of extra selling so there is a net of sales. There is some insider ownership with a director owning around 13% of the outstanding shares worth around $6.3M and the CEO owning 2% of the company worth around $1.0M. Also Franklin Templeton Investments Corp. owns around 4.5M shares worth around $11M and around 23% of the outstanding shares.
It is hard to do a price analysis based on Price/Earnings per Share Ratios. The P/E has been very low lately range from 1.33 to 4.69. The current one is probably around 4.33, a very low P/E also. This is based on a current stock price of $2.25 and the 12 month EPS of $0.50 ending at the first quarter of 2014.
I get a current Graham Price of $5.47. The 10 year low, median and high median Price/Graham Price Ratios are 0.21, 0.41 and 0.61. These are very low numbers. The current P/GP Ratio is 0.41 based on a stock price $2.25. This stock price test would suggest that the stock price is relatively reasonable. On an absolute basis, any P/GP Ratio at 1.00 and below says that the stock is at a very good price.
I get a 10 year Price/Book Value per Share Ratio of 0.90. The current P/B Ratio is 0.96 a value some 7% higher. The P/B Ratios are quite low. This stock price test would suggest that the stock price is relatively reasonable. On an absolute basis, a P/B Ratio below 1.00 says that the stock is cheap.
The 5 year median dividend yield is 10.56% and the current dividend yield is about 1% higher at 10.67%. This stock price test would suggest that the stock price is relatively reasonable. The dividend yield is quite high. On an absolute basis, a dividend yield of 10.56% says that the stock is cheap.
On an historical basis, the average dividend yield is 6.5% a value some 64% below today's dividend yield. The historical median dividend yield is 5.45% a value even lower and some 95% lower than today dividend yield. This stock price testing says that the stock is relatively cheap.
There is a wonderful analysis of this company at Wikinvest. There is another good article on this stock at Seeking Alpha by Alec Mazo. Elliot Luchansky on Guru Focus give this stock a Strong Buy rating and a 12 month stock price of $5.65.
I am very interested to see how this all plays out. I am keeping my shares because that will make what happens to the company all the more interesting to me. Both the Wikinvest and Seeking Alpha analysis see this stock producing a nice return for shareholders. We will see. See my spreadsheet at am.htm.
This is the second of two parts. The first part was posted on Thursday, May 30, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Automodular Corporation is a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. Its web site is here Automodular Corp.
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, May 29, 2014
Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM, OTC-AMZKF). I went looking for some dividend paying small cap to soak up extra money in the TFSA. This is one of the stocks that I found.
First, I have invested very little in this stock, only around $1,000. It is small and it might be broken up when the Ford contract ends. However, the management is looking around for things to invest in. Most of the money I have made on this stock has been in dividends.
I have made a total return of 21.49% per year with 18.42% from dividends and 3.07% from capital gains. The 5 and 10 year total return on this stock is 87.71% and 13.15% per year. Of the total return 33.53% and 4.14% per year is attributable to capital gains over the past 5 and 10 years. Of the total return 54.18% and 9.01% per year is attributable to dividends over the past 5 and 10 years.
As far as dividends go, the company has been inconsistent. They have paid dividends when they can and have paid special dividends when they can. However, I would not consider dividends from this stock dependable. And there is that other thing that it might go out of business soon.
The outstanding shares have decreased by 5.7% and increased by 3.6% per year over the past 5 and 10 years. Outstanding shares have increased due to stock options and decreased due to Buy Backs. Revenue has fluctuated, but they have done well in increasing EPS and CFPS over the past 5 years, but not so much over the past 10 years.
If you use 5 year running average revenue per share is up by 1.1% and down by 1.3% per year over the past 5 and 10 years. EPS is up by 76% and 2.4% per year if you use 5 year running averages. CFPS is up by 8.2% and 1.1% per year over the past 5 and 10 year using 5 year running averages.
This company has had a number of years with earning losses. When they have had income, the Return on Equity has been good. The ROE for 2013 was 24%. The ROE on comprehensive income was close at 24.5%.
This small cap has great debt ratios. The Liquidity Ratio for 2013 is 3.75 and the Debt Ratio is 4.07. The Leverage and Debt/Equity Ratio are 1.35 and 0.35.
I plan to hold on to my shares until the end. The other thing is that they have in cash around $2.05 per share. With a current share price at $2.25, the cash is equal to 91.2% of the share price. See my spreadsheet at am.htm.
This is the first of two parts. The second part will be posted on Friday, May 29, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Automodular Corporation is a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. Its web site is here Automodular Corp.
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.
First, I have invested very little in this stock, only around $1,000. It is small and it might be broken up when the Ford contract ends. However, the management is looking around for things to invest in. Most of the money I have made on this stock has been in dividends.
I have made a total return of 21.49% per year with 18.42% from dividends and 3.07% from capital gains. The 5 and 10 year total return on this stock is 87.71% and 13.15% per year. Of the total return 33.53% and 4.14% per year is attributable to capital gains over the past 5 and 10 years. Of the total return 54.18% and 9.01% per year is attributable to dividends over the past 5 and 10 years.
As far as dividends go, the company has been inconsistent. They have paid dividends when they can and have paid special dividends when they can. However, I would not consider dividends from this stock dependable. And there is that other thing that it might go out of business soon.
The outstanding shares have decreased by 5.7% and increased by 3.6% per year over the past 5 and 10 years. Outstanding shares have increased due to stock options and decreased due to Buy Backs. Revenue has fluctuated, but they have done well in increasing EPS and CFPS over the past 5 years, but not so much over the past 10 years.
If you use 5 year running average revenue per share is up by 1.1% and down by 1.3% per year over the past 5 and 10 years. EPS is up by 76% and 2.4% per year if you use 5 year running averages. CFPS is up by 8.2% and 1.1% per year over the past 5 and 10 year using 5 year running averages.
This company has had a number of years with earning losses. When they have had income, the Return on Equity has been good. The ROE for 2013 was 24%. The ROE on comprehensive income was close at 24.5%.
This small cap has great debt ratios. The Liquidity Ratio for 2013 is 3.75 and the Debt Ratio is 4.07. The Leverage and Debt/Equity Ratio are 1.35 and 0.35.
I plan to hold on to my shares until the end. The other thing is that they have in cash around $2.05 per share. With a current share price at $2.25, the cash is equal to 91.2% of the share price. See my spreadsheet at am.htm.
This is the first of two parts. The second part will be posted on Friday, May 29, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Automodular Corporation is a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. Its web site is here Automodular Corp.
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, May 28, 2014
Progressive Waste Solutions Ltd. 2
On my other blog I am today writing about testing a stock price using the 5 year median dividend yield continue...
I own this stock of Progressive Waste Solutions Ltd. (TSX-BIN, NYSE-BIN). I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. At that time it was an income fund. In 2010, I needed to buy something for Pension Acct. I have this already and it is on TD Action Buy List.
The outstanding shares were increased due to stock options and restricted shares by 77,000 shares. Restricted Shares are share based compensation. The Book Value of these shares is $348,000 and these shares were worth $2,022,790 at the end of 2013.
When I look at insider trading, I find $2.1M of insider selling and $1.5M of insider buying with net selling at $0.6M. Net selling is very low. There is some insider ownership with the CEO having shares worth around $4.6M, the CFO have shares worth around $0.7M and officer having shares worth around $1.5M and the Chairman having shares worth around $1.7M.
There is also two 10% holder with IESI Corporation owning $239M worth of shares or 9.7% of the outstanding shares and Progressive Waste Solutions Ltd. owing shares worth $125M or 5.1% of the outstanding shares. (IESI Corporation is what this corporation is known as in the US.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.08, 22.58 and 26.08. These P/E Ratios are lower than the 10 year low, median and high median P/E Ratios. The current P/E Ratio is 23.72 based on a stock price of $28.41 and 2014 EPS estimates of $1.20. This stock price test suggests that the stock price is reasonable.
I get a Graham Price of $11.15. The 10 year low, median and high Price/Graham Price Ratios are 1.29, 1.53 and 1.79. The current P/GP Ratio is 1.56 based on a stock price of $28.41. This stock price test suggests that the stock price is reasonable.
I get a 10 year Price/Book Value per Share ratio of 1.92. The current P/B Ratio is 2.32 based on a stock price $28.41 and BVPS of $12.23. The current P/B Ratio is some 21% higher than the 10 year P/B Ratio and this stock price test suggests that the stock price is high.
The current dividend yield is 2.11% and the 5 year median dividend yield at 2.47% is some 14.4% higher. This stock price test suggests that the stock price is still reasonable, but towards to high end of the reasonableness range. Because this stock was previously an income trust, historical dividend yields do not enlighten us on the reasonableness of the current stock price.
When I look at analysts' recommendations I find Strong Buy, Buy, Hold and Underperform Recommendations. The consensus recommendation would be a Buy recommendation. The 12 month consensus stock price target is $30.75. This implies a total return of 10.35% with 2.11% from dividends and 8.24% from capital gains.
Barry Schwartz, Chief Investment Officer and Portfolio Manager, Baskin Financial Services picks this stock as one has his top picks. He thinks it might be a takeover target. I hope not as I would rather continue to hold this stock rather than have it taken out of the market. According to market watch, RBC Capital raised their target price on this stock from $29 to $31.
The stock price is reasonable to expensive. I will continue to hold on to the shares I have but I have no plans at present to buy any more. See my spreadsheet at bin.htm.
This is the second of two parts. The first part was posted on Tuesday, May 27, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. Its web site is here Progressive Waste.
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 own this stock of Progressive Waste Solutions Ltd. (TSX-BIN, NYSE-BIN). I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. At that time it was an income fund. In 2010, I needed to buy something for Pension Acct. I have this already and it is on TD Action Buy List.
The outstanding shares were increased due to stock options and restricted shares by 77,000 shares. Restricted Shares are share based compensation. The Book Value of these shares is $348,000 and these shares were worth $2,022,790 at the end of 2013.
When I look at insider trading, I find $2.1M of insider selling and $1.5M of insider buying with net selling at $0.6M. Net selling is very low. There is some insider ownership with the CEO having shares worth around $4.6M, the CFO have shares worth around $0.7M and officer having shares worth around $1.5M and the Chairman having shares worth around $1.7M.
There is also two 10% holder with IESI Corporation owning $239M worth of shares or 9.7% of the outstanding shares and Progressive Waste Solutions Ltd. owing shares worth $125M or 5.1% of the outstanding shares. (IESI Corporation is what this corporation is known as in the US.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.08, 22.58 and 26.08. These P/E Ratios are lower than the 10 year low, median and high median P/E Ratios. The current P/E Ratio is 23.72 based on a stock price of $28.41 and 2014 EPS estimates of $1.20. This stock price test suggests that the stock price is reasonable.
I get a Graham Price of $11.15. The 10 year low, median and high Price/Graham Price Ratios are 1.29, 1.53 and 1.79. The current P/GP Ratio is 1.56 based on a stock price of $28.41. This stock price test suggests that the stock price is reasonable.
I get a 10 year Price/Book Value per Share ratio of 1.92. The current P/B Ratio is 2.32 based on a stock price $28.41 and BVPS of $12.23. The current P/B Ratio is some 21% higher than the 10 year P/B Ratio and this stock price test suggests that the stock price is high.
The current dividend yield is 2.11% and the 5 year median dividend yield at 2.47% is some 14.4% higher. This stock price test suggests that the stock price is still reasonable, but towards to high end of the reasonableness range. Because this stock was previously an income trust, historical dividend yields do not enlighten us on the reasonableness of the current stock price.
When I look at analysts' recommendations I find Strong Buy, Buy, Hold and Underperform Recommendations. The consensus recommendation would be a Buy recommendation. The 12 month consensus stock price target is $30.75. This implies a total return of 10.35% with 2.11% from dividends and 8.24% from capital gains.
Barry Schwartz, Chief Investment Officer and Portfolio Manager, Baskin Financial Services picks this stock as one has his top picks. He thinks it might be a takeover target. I hope not as I would rather continue to hold this stock rather than have it taken out of the market. According to market watch, RBC Capital raised their target price on this stock from $29 to $31.
The stock price is reasonable to expensive. I will continue to hold on to the shares I have but I have no plans at present to buy any more. See my spreadsheet at bin.htm.
This is the second of two parts. The first part was posted on Tuesday, May 27, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. Its web site is here Progressive Waste.
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, May 27, 2014
Progressive Waste Solutions Ltd.
I own this stock of Progressive Waste Solutions Ltd. (TSX-BIN, NYSE-BIN). I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. At that time it was an income fund. In 2010, I needed to buy something for Pension Acct. I have this already and it is on TD Action Buy List. Of 13 analysts, 11 say strong buy and 2 hold.
When this company changed from an Income Trust to a corporation, it cut its dividend by 72%. This was in 2009. In 2011 it started to raise the dividends and they are up 20% between 2011 and 2013. The last dividend raise was in 2013 and it was an increase of 7.1%.
The thing is that the decrease in dividends brought the Dividend Payout Ratios into line with what they should be for a corporation. The 5 year median DPR for EPS is 66% and for CFPS is 16%. For 2013 these ratios were 53% for EPS and 14% for CFPS.
As an Income Trust company the dividends yield were quite high. When this company changed to a corporation, the dividend yields became much lower. Currently the dividends are 2.11%. As a dividend growth stock, the dividends are moderate and the dividend increases are moderate. Since 2008 they also have not raised the dividends each year as there was no dividend increase in 2012.
I have earned a total return of 5.13% per year with 2.53% per year from capital gains and 2.60% per year from dividends. The 5 and 10 year total return is 13.66% and 5.87% per year. The portion of this return attributable to dividends is at 2.68% and 4.38% per year. The portion of this return attributable to capital gain is at 10.97% and 1.49% per year.
The thing is that the stock price fell heavily in 2008 when it was known that the dividend was to be cut. The stock fell some 70%. Dividend investors do not like dividend cuts. However, I think that the company was wise to do this to get their Dividend Payout Ratios into line with what a corporation should have.
What complicates this stock is that in 2009 they started to report in US$ rather than CDN$. They also started to report in US GAAP rather than CDN GAAP. This is because they have business both in Canada and US. The dividends are still paid in CDN$.
The outstanding shares by increased by 14.8% and 15.8% per year over the past 5 and 10 years. The shares have increased due to Stock Options and Share Issues. The shares have decreased due to Buy Backs. Revenue, Cash Flow and Earnings have grown well, Revenue per Share, CFPS and EPS have not done as well because of the increase in outstanding share. Basically, there is good growth in EPS, but not for Revenue per Share or CFPS.
2013 was a good year for this company, but 2011 was not. In 2011 they had good Revenue and Cash Flow, but that they had an EPS loss. However, the loss in 2011 was due to a non-cash impairment loss (that is they wrote off goodwill).
Revenue has grown over the past 5 and 10 years at 17% and 32% per year. Revenue per share has grown at 2.2% and 13.68% per year over the past 5 and 10 years. Since I only have dated back to 2002, I only can look at 5 year running averages over the past 5 years and the Revenue per shares has grown at 3.3% per year. These figures are in US$.
Net Income has grown at the rate of 25% and 28% per year over the past 5 and 10 years. The 5 year running average has only grown at 4.2% per year and this is because of the big net income loss in 2011. The EPS has grown at 9% and 10% per year over the past 5 and 10 years. The 5 year running average is down by 9%, but again this is because of the loss in 2011. I think that the growth over the past 5 and 10 years is more accurate measure of the growth of this company. These figures are in US$.
Cash flow has grown at the rate of 17% and 28% per year over the past 5 and 10 years. Cash Flow per Share's is much less at 1.5% and 10% per year. If you look at the 5 year running averages, the CFPS has grown at 2% per year. CFPS just has not grown much over the past 5 years.
The Return on Equity has always been quite low for this company. For 2013 it was the highest it has ever been at 9.1%. The 5 year median is just 5.3%. The ROE is expected to be around 9.6% for 2014. The comprehensive income was lower than that on net income for 2013 coming in at just 6.5%. However, its 5 year median value is higher at 7.4%. The low ROE is certainly a negative for this company.
The Liquidity Ratio was low in 2013 at 1.00. This ratio has always been low and the company generally depends on cash flow to pay help cover current liabilities and if you add in cash flow less dividends the ratio is a health 2.29.
The Debt Ratio for this company has always been quite good. The ratio for 2013 is 1.61 and the 5 year median is 1.88. The Leverage and Debt/Equity Ratio are rather standard for an industrial stock and for 2013 were are 2.63 and 1.63.
This is an industrial dividend growth stock. You would buy it to diversify and for the exposure to the US market. See my spreadsheet at bin.htm.
This is the first of two parts. The second part will be posted on Wednesday, May 28, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. Its web site is here Progressive Waste.
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 this company changed from an Income Trust to a corporation, it cut its dividend by 72%. This was in 2009. In 2011 it started to raise the dividends and they are up 20% between 2011 and 2013. The last dividend raise was in 2013 and it was an increase of 7.1%.
The thing is that the decrease in dividends brought the Dividend Payout Ratios into line with what they should be for a corporation. The 5 year median DPR for EPS is 66% and for CFPS is 16%. For 2013 these ratios were 53% for EPS and 14% for CFPS.
As an Income Trust company the dividends yield were quite high. When this company changed to a corporation, the dividend yields became much lower. Currently the dividends are 2.11%. As a dividend growth stock, the dividends are moderate and the dividend increases are moderate. Since 2008 they also have not raised the dividends each year as there was no dividend increase in 2012.
I have earned a total return of 5.13% per year with 2.53% per year from capital gains and 2.60% per year from dividends. The 5 and 10 year total return is 13.66% and 5.87% per year. The portion of this return attributable to dividends is at 2.68% and 4.38% per year. The portion of this return attributable to capital gain is at 10.97% and 1.49% per year.
The thing is that the stock price fell heavily in 2008 when it was known that the dividend was to be cut. The stock fell some 70%. Dividend investors do not like dividend cuts. However, I think that the company was wise to do this to get their Dividend Payout Ratios into line with what a corporation should have.
What complicates this stock is that in 2009 they started to report in US$ rather than CDN$. They also started to report in US GAAP rather than CDN GAAP. This is because they have business both in Canada and US. The dividends are still paid in CDN$.
The outstanding shares by increased by 14.8% and 15.8% per year over the past 5 and 10 years. The shares have increased due to Stock Options and Share Issues. The shares have decreased due to Buy Backs. Revenue, Cash Flow and Earnings have grown well, Revenue per Share, CFPS and EPS have not done as well because of the increase in outstanding share. Basically, there is good growth in EPS, but not for Revenue per Share or CFPS.
2013 was a good year for this company, but 2011 was not. In 2011 they had good Revenue and Cash Flow, but that they had an EPS loss. However, the loss in 2011 was due to a non-cash impairment loss (that is they wrote off goodwill).
Revenue has grown over the past 5 and 10 years at 17% and 32% per year. Revenue per share has grown at 2.2% and 13.68% per year over the past 5 and 10 years. Since I only have dated back to 2002, I only can look at 5 year running averages over the past 5 years and the Revenue per shares has grown at 3.3% per year. These figures are in US$.
Net Income has grown at the rate of 25% and 28% per year over the past 5 and 10 years. The 5 year running average has only grown at 4.2% per year and this is because of the big net income loss in 2011. The EPS has grown at 9% and 10% per year over the past 5 and 10 years. The 5 year running average is down by 9%, but again this is because of the loss in 2011. I think that the growth over the past 5 and 10 years is more accurate measure of the growth of this company. These figures are in US$.
Cash flow has grown at the rate of 17% and 28% per year over the past 5 and 10 years. Cash Flow per Share's is much less at 1.5% and 10% per year. If you look at the 5 year running averages, the CFPS has grown at 2% per year. CFPS just has not grown much over the past 5 years.
The Return on Equity has always been quite low for this company. For 2013 it was the highest it has ever been at 9.1%. The 5 year median is just 5.3%. The ROE is expected to be around 9.6% for 2014. The comprehensive income was lower than that on net income for 2013 coming in at just 6.5%. However, its 5 year median value is higher at 7.4%. The low ROE is certainly a negative for this company.
The Liquidity Ratio was low in 2013 at 1.00. This ratio has always been low and the company generally depends on cash flow to pay help cover current liabilities and if you add in cash flow less dividends the ratio is a health 2.29.
The Debt Ratio for this company has always been quite good. The ratio for 2013 is 1.61 and the 5 year median is 1.88. The Leverage and Debt/Equity Ratio are rather standard for an industrial stock and for 2013 were are 2.63 and 1.63.
This is an industrial dividend growth stock. You would buy it to diversify and for the exposure to the US market. See my spreadsheet at bin.htm.
This is the first of two parts. The second part will be posted on Wednesday, May 28, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. Its web site is here Progressive Waste.
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, May 26, 2014
Leon's Furniture Ltd 2
On my other blog I am today writing about Portfolio Theory continue...
I own this stock of Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010 and 2013.
Over the past year the insider trading report shows $2.6M of insider selling and $2.5M of net insider selling. There is a minimal amount of insider buying.
How insiders seem to get stock options is that they get non-voting shares that can be exchanged for voting shares. In 2013, 70,000 non-voting shares were exchanged for voting shares and increased the number of outstanding shares. The book value of these shares was at $659,000 and this numbers of shares was worth $979,000 at the end of 2013.
There is insider ownership with the CEO owning shares worth around $13M, the CFO owning shares worth around $2.9M and the Chairman owning shares worth around $1.9M. Also, the Leon family owns around 70% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 15.17 and 17.13. These are slightly higher than the 10 year low, median and high median P/E Ratios. The current P/E Ratio is 14.25 based on a stock price of $14.25 and 2014 EPS estimates of $1.00. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a Graham price of $11.91. The 10 year Price/Graham Price Ratios are 1.07, 1.22 and 1.38. The current P/GP Ratio is 1.20. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a 10 year Price/Book Value per Share Ratio of 2.18. The current P/B Ratio is 2.08 based on a stock price of $14.25 and a BVPS of $6.86. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a 5 year median dividend yield of 3.01% and the current dividend yield is some 6.6% lower at 2.81%. This stock price test says that the stock price is reasonable, but is on the pricy side of the reasonableness range.
However, if you look at historical dividend yield, the average dividend yield is 2.28% and the current dividend yield of 2.81% is some 23% higher. The historical median dividend yield is even lower at 1.82% a value some 54% lower than the current dividend yield. This stock test suggests that the stock price is reasonable to cheap. However, it has been cheaper as the historical high dividend is around 3.23%.
There is an article in the Toronto Star that talks about the company's profit being down in the first quarter of 2014 because of extreme weather. There is a recent Forbes article saying that Leon's stock is oversold. (The term oversold means that the stock price is low.) A blogger called Average Dividend Yield did a review of this stock last year.
I do not plan to purchase more of this stock at present, but I am satisfied with this stock at present and I have no desire to sell any of it. I think that it will take some time for the company to absorb The Brick Ltd. furniture company. See my spreadsheet at lnf.htm.
This is the second of two parts. The first part was posted on Friday, May 23, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is here Leon's Furniture.
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 own this stock of Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010 and 2013.
Over the past year the insider trading report shows $2.6M of insider selling and $2.5M of net insider selling. There is a minimal amount of insider buying.
How insiders seem to get stock options is that they get non-voting shares that can be exchanged for voting shares. In 2013, 70,000 non-voting shares were exchanged for voting shares and increased the number of outstanding shares. The book value of these shares was at $659,000 and this numbers of shares was worth $979,000 at the end of 2013.
There is insider ownership with the CEO owning shares worth around $13M, the CFO owning shares worth around $2.9M and the Chairman owning shares worth around $1.9M. Also, the Leon family owns around 70% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 15.17 and 17.13. These are slightly higher than the 10 year low, median and high median P/E Ratios. The current P/E Ratio is 14.25 based on a stock price of $14.25 and 2014 EPS estimates of $1.00. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a Graham price of $11.91. The 10 year Price/Graham Price Ratios are 1.07, 1.22 and 1.38. The current P/GP Ratio is 1.20. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a 10 year Price/Book Value per Share Ratio of 2.18. The current P/B Ratio is 2.08 based on a stock price of $14.25 and a BVPS of $6.86. This stock test suggests that the stock price is reasonable and towards the lower end of the reasonableness range.
I get a 5 year median dividend yield of 3.01% and the current dividend yield is some 6.6% lower at 2.81%. This stock price test says that the stock price is reasonable, but is on the pricy side of the reasonableness range.
However, if you look at historical dividend yield, the average dividend yield is 2.28% and the current dividend yield of 2.81% is some 23% higher. The historical median dividend yield is even lower at 1.82% a value some 54% lower than the current dividend yield. This stock test suggests that the stock price is reasonable to cheap. However, it has been cheaper as the historical high dividend is around 3.23%.
There is an article in the Toronto Star that talks about the company's profit being down in the first quarter of 2014 because of extreme weather. There is a recent Forbes article saying that Leon's stock is oversold. (The term oversold means that the stock price is low.) A blogger called Average Dividend Yield did a review of this stock last year.
I do not plan to purchase more of this stock at present, but I am satisfied with this stock at present and I have no desire to sell any of it. I think that it will take some time for the company to absorb The Brick Ltd. furniture company. See my spreadsheet at lnf.htm.
This is the second of two parts. The first part was posted on Friday, May 23, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is here Leon's Furniture.
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, May 23, 2014
Leon's Furniture Ltd
I own this stock of Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010 and 2013.
This is a dividend growth stock. It has modest dividends and modest increases. The current dividend is 2.81% and the 5 year median dividend is 3.01%. The 5 and 10 year dividend growth has been at 7.4% and 12.3% per year.
This company does not do a dividend increase every year. However, it has a fairly good record. This is only the second time that dividends were not increased annually since 1994. The last dividend increase was for 11% in 2012. There was no increase in 2013 and none so far in 2014. However, this company gives out the occasional special dividend and there was a special dividend given in 2012.
The Dividend Payout Ratios for EPS and CFPS are 46% and 36%, respectively. The DPRs for 2013 were at 46% and 23% for ESP and CFPS. The DPR for EPS is expected to be lower in 2014. Both the dividend yield and DPRs are been increasing lately. At one time the dividends were below 2% and the DPR for EPS was around 28% and for CFPS around 24%. Part of the increase seems to be company policy but part is probably because the economy has not been kind to retail since the last recession.
I have made a total return on this stock of 7.59% per year with 4.48% from capital gains and 3.11% from dividends. The 5 and 10 year total return on this stock is at 9.87% and 8.47% per year. The portion of these returns attributable to dividends is 3.57% and 3.58% per year. The portion of these returns attributable to capital gain is 6.30% and 4.90% per year.
The outstanding shares have not been increased over the past 5 and 10 years. The shares have increased due to Stock Options and decreased due to Buy Backs. Revenue, Earnings and Cash flow have increased over the past 5 and 10 years. However, Revenue growth is much better than either Earnings or Cash Flow. The increases in Earnings are the lowest.
The Revenue per share, using 5 year running averages, has increased by 8.1% and 9% per year over the past 5 and 10 years. The Earnings per Share has increased, using the 5 year running averages at 1.6% and 5.6% per year over the past 5 and 10 years. The Cash Flow per share has increased by 3.5% and 7.4% per year over the past 5 and 10 years using the 5 year running averages.
The Return on Equity has been over 10% since 1995. The ROE for 2013 is at 14.9%. The ROE on comprehensive income was not as good in 2013, but it was a good figure at 14.3%.
Correction* The Liquidity Ratio has always been very good until this year and the one for 2013 is just 0.96. Prior to 2013, this ratio was always high and the 5 year median Liquidity Ratio is 2.62. The Debt Ratio used to be also quite good as has the Leverage and Debt/Equity Ratios. The 2013 Ratios are 1.42 for Debt and 3.39 and 2.39 for the Leverage and Debt/Equity Ratios. The 5 year median for Debt Ratio is 2.47 and for the Leverage and Debt/Equity Ratios is 1.46 and 0.46.
The change in the Debt Ratios occurred because of the purchase of The Brick Ltd. by Leon’s Furniture Ltd.
My investment has done fine in this stock. The total return is not high, but it is respectable. This is a retail stock and you buy retail stock for diversification. My dividend yield on my original investment in 2006 is at 3.61%. This is higher than the current dividend yield of 2.81% and is a respectable yield. I plan to hold on to the shares that I have in this company. See my spreadsheet at lnf.htm.
This is the first of two parts. The second part will be posted on Monday, May 26, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is here Leon's Furniture.
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 a dividend growth stock. It has modest dividends and modest increases. The current dividend is 2.81% and the 5 year median dividend is 3.01%. The 5 and 10 year dividend growth has been at 7.4% and 12.3% per year.
This company does not do a dividend increase every year. However, it has a fairly good record. This is only the second time that dividends were not increased annually since 1994. The last dividend increase was for 11% in 2012. There was no increase in 2013 and none so far in 2014. However, this company gives out the occasional special dividend and there was a special dividend given in 2012.
The Dividend Payout Ratios for EPS and CFPS are 46% and 36%, respectively. The DPRs for 2013 were at 46% and 23% for ESP and CFPS. The DPR for EPS is expected to be lower in 2014. Both the dividend yield and DPRs are been increasing lately. At one time the dividends were below 2% and the DPR for EPS was around 28% and for CFPS around 24%. Part of the increase seems to be company policy but part is probably because the economy has not been kind to retail since the last recession.
I have made a total return on this stock of 7.59% per year with 4.48% from capital gains and 3.11% from dividends. The 5 and 10 year total return on this stock is at 9.87% and 8.47% per year. The portion of these returns attributable to dividends is 3.57% and 3.58% per year. The portion of these returns attributable to capital gain is 6.30% and 4.90% per year.
The outstanding shares have not been increased over the past 5 and 10 years. The shares have increased due to Stock Options and decreased due to Buy Backs. Revenue, Earnings and Cash flow have increased over the past 5 and 10 years. However, Revenue growth is much better than either Earnings or Cash Flow. The increases in Earnings are the lowest.
The Revenue per share, using 5 year running averages, has increased by 8.1% and 9% per year over the past 5 and 10 years. The Earnings per Share has increased, using the 5 year running averages at 1.6% and 5.6% per year over the past 5 and 10 years. The Cash Flow per share has increased by 3.5% and 7.4% per year over the past 5 and 10 years using the 5 year running averages.
The Return on Equity has been over 10% since 1995. The ROE for 2013 is at 14.9%. The ROE on comprehensive income was not as good in 2013, but it was a good figure at 14.3%.
Correction* The Liquidity Ratio has always been very good until this year and the one for 2013 is just 0.96. Prior to 2013, this ratio was always high and the 5 year median Liquidity Ratio is 2.62. The Debt Ratio used to be also quite good as has the Leverage and Debt/Equity Ratios. The 2013 Ratios are 1.42 for Debt and 3.39 and 2.39 for the Leverage and Debt/Equity Ratios. The 5 year median for Debt Ratio is 2.47 and for the Leverage and Debt/Equity Ratios is 1.46 and 0.46.
The change in the Debt Ratios occurred because of the purchase of The Brick Ltd. by Leon’s Furniture Ltd.
My investment has done fine in this stock. The total return is not high, but it is respectable. This is a retail stock and you buy retail stock for diversification. My dividend yield on my original investment in 2006 is at 3.61%. This is higher than the current dividend yield of 2.81% and is a respectable yield. I plan to hold on to the shares that I have in this company. See my spreadsheet at lnf.htm.
This is the first of two parts. The second part will be posted on Monday, May 26, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company sells home furnishings, appliances and electronics through a chain of retail facilities and franchises located in Canada. Leon family owns 68% of this company. Its web site is here Leon's Furniture.
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, May 22, 2014
Ensign Energy Services 2
On my other blog I am today writing about buying Preferred Shares continue...
I own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time.
When I look at insider trading, there is only net selling of $2M which is a fairly small amount of the capitalization of this stock (0.08%). In 2013 the outstanding shares seem to be increased by 189,000 shares. This is also a very small number at 0.12% of the outstanding shares. (Often these numbers are around 0.5%).
There is insider ownership with the CEO owning share worth around $7M, the CFO owning shares worth around $16.2M and the Chairman owning shares worth around $426M. The Chairman owns around 17% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.98, 16.40 and 21.38. These ratios are higher than the 10 year ratios. The current P/E Ratio is 15.23 based on a stock price of $16.14 and 2014 EPS estimate of $1.06. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $17.92. The 10 year low, median and high median Price/Graham Price Ratios are 0.83, 1.07 and 1.29. The current P/GP Ratio is 0.90. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis, a P/GP Ratio of 1.00 or lower says that the stock price is good.
The 10 year median Price/Book Value per Share Ratio 1.62. The current P/B Ratio is 1.20, a value some 26% lower. This stock test suggests that the stock price is cheap.
The 5 year median dividend yield is 2.55% and the current one is some 14% higher at 2.91. This stock price test suggests that the stock price is cheap to reasonable. The historical average dividend yield at 2.12% and the historical median dividend yield at 1.47% are much lower than the current dividend yield. Both these tests suggest that the stock price is quite cheap. (However the stock price has been relatively cheaper in the past as the historical high dividend yield is 3.33%.
The analysts' recommendations are Buy and Hold. The consensus recommendation is a Hold. The 12 months stock price consensus is 16.29% with 13.38% from capital gains and 2.91% from dividends.
Raymond James issued an Outperform rating on this stock in early May 2014. The Dividend Blogger talks about this stock being on the Dividend Achievers list. The Calgary Herald talks about this company's plans to accelerate its rig building this year and next as industry optimism ramps up.
This company is apparently being accused of Backdating stock options. The CBC Article is here. This happened before 2006, but it is a serious accusation and something that should worry investors. Unfortunately in the early 2000's a number of companies were accused of this and no doubt some companies did it. The practice of seems to have stopped as companies because aware how upset investors were at the practice.
In my point of view the time to invest in good stocks are when they are cheap. I know people think that this industry will take a while to recover and any investment can wait. My experience has been that waiting is a fool's game. It is hard to catch the right time to invest. If I see a stock I like and it is cheap, I will buy. See my spreadsheet at esi.htm.
This is the second of two parts. The first part was posted on Wednesday, May 21, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy.
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 own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time.
When I look at insider trading, there is only net selling of $2M which is a fairly small amount of the capitalization of this stock (0.08%). In 2013 the outstanding shares seem to be increased by 189,000 shares. This is also a very small number at 0.12% of the outstanding shares. (Often these numbers are around 0.5%).
There is insider ownership with the CEO owning share worth around $7M, the CFO owning shares worth around $16.2M and the Chairman owning shares worth around $426M. The Chairman owns around 17% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.98, 16.40 and 21.38. These ratios are higher than the 10 year ratios. The current P/E Ratio is 15.23 based on a stock price of $16.14 and 2014 EPS estimate of $1.06. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $17.92. The 10 year low, median and high median Price/Graham Price Ratios are 0.83, 1.07 and 1.29. The current P/GP Ratio is 0.90. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis, a P/GP Ratio of 1.00 or lower says that the stock price is good.
The 10 year median Price/Book Value per Share Ratio 1.62. The current P/B Ratio is 1.20, a value some 26% lower. This stock test suggests that the stock price is cheap.
The 5 year median dividend yield is 2.55% and the current one is some 14% higher at 2.91. This stock price test suggests that the stock price is cheap to reasonable. The historical average dividend yield at 2.12% and the historical median dividend yield at 1.47% are much lower than the current dividend yield. Both these tests suggest that the stock price is quite cheap. (However the stock price has been relatively cheaper in the past as the historical high dividend yield is 3.33%.
The analysts' recommendations are Buy and Hold. The consensus recommendation is a Hold. The 12 months stock price consensus is 16.29% with 13.38% from capital gains and 2.91% from dividends.
Raymond James issued an Outperform rating on this stock in early May 2014. The Dividend Blogger talks about this stock being on the Dividend Achievers list. The Calgary Herald talks about this company's plans to accelerate its rig building this year and next as industry optimism ramps up.
This company is apparently being accused of Backdating stock options. The CBC Article is here. This happened before 2006, but it is a serious accusation and something that should worry investors. Unfortunately in the early 2000's a number of companies were accused of this and no doubt some companies did it. The practice of seems to have stopped as companies because aware how upset investors were at the practice.
In my point of view the time to invest in good stocks are when they are cheap. I know people think that this industry will take a while to recover and any investment can wait. My experience has been that waiting is a fool's game. It is hard to catch the right time to invest. If I see a stock I like and it is cheap, I will buy. See my spreadsheet at esi.htm.
This is the second of two parts. The first part was posted on Wednesday, May 21, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy.
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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