On my other blog I am today writing about possible cheap dividend stocks for August 2014 continue...
I do not own this stock of BlackBerry Ltd. (TSX-BB, NASDAQ-BBRY), but I have in the past owned it when it was called Research in Motion or RIM. In fact a made a lot of money in this company, but this was early in the 2000's. I always liked tech stocks and this was a fast rising tech when I was interested in buying it.
Investors in this stock have really not done well lately. The 5 and 10 year total returns to date are a negative 31.65% per year and a negative 8.49% per year. The stock hit a peak of around $123.52 in 2008 and it has been basically declined since. The latest price I have is $10.15.
The Revenue and Revenue per share is down over the past 5 years, although it is up over the past 10 years. The decline is Revenue is at 9.2% per year over the past 5 years and the decline in Revenue per Share is at 7.9% per year over the past 5 years.
The company has had no earnings over the past 2 years. No analyst seems to expect it to have any positive earnings over the next two years either.
Cash Flow is down by 13.1% per year over the past 5 years. Cash Flow per Share is down by 11.8% per year over the past 5 years. The reporting for this stock is in US$ and the above figures are in US$.
The Bibey Post has a very upbeat recently article on this stock. Also there is a positive article in the Financial Post about BlackBerry buying Secusmart GmbH, the German producer of anti-eavesdropping technology for smartphones.
The analysts' recommendations are all over the place. Recommendations cover Buy, Hold, Underperform and Sell. They are no Strong Buy recommendations. The consensus recommendation would be Hold. Most of the recommendations are a Hold. The 12 months consensus stock price is at $8.84, a value below the current stock price.
Sound bit for Twitter and StockTwits is: Not yet time to buy. I must admit I have made my money in this stock and I keep looking at it because I am curious about its future. I have no plans to buy this stock now or in the future. See my spreadsheet at bb.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
BlackBerry Ltd. develops hardware and software solutions for mobile communications. It provides platforms and solutions, which support multiple wireless network standards through the development of integrated hardware and software services. Its web site is here BlackBerry.
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, August 5, 2014
Friday, August 1, 2014
Pulse Seismic Inc.
I do not own this stock of Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I went to the Globe and Mail site of G&M and from Globe Investor section I selected the Stock Filter. I asked for companies that were worth between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.
The dividends on this stock have jumped around a bit. They were at first increasing them, but when they stopped earning money after 2008, dividends were cancelled for 2009 and 2010. Dividends were restarted in 2011 and they were increased in 2012 and 2013. So far in 2014 they have remained flat. The dividends are up by 5.4% per year over the past 10 years, but down by 16.7% per year over the past 5 years.
I do not think dividends will increase in 2014 as they did not have positive earnings in 2013 and it is not expected that earnings for 2014 will cover the current dividend. As for Dividend Payout Ratio I cannot get a fix on this over the last few years as the DPR for EPS is sometimes negative. The 5 year median DPR for CFPS is just 4.2% because some years no dividends were paid. The DPR for CFPS for 2013 is 19%.
Investors have been making money with 5 and 10 year total return at 22.52% and 10.11% per year. The portion of this return attributable to dividends was at 2.48% and 4.20% per year over these periods. The portion of this return attributable to capital gain was at 20.03% and 5.91% per year over these periods.
Outstanding shares have been increasing somewhat over the past 5 and 10 years at2.1% and 3.9% per year. Shares have increased due to Stock Options and Share Issues and have decreased due to Buy Backs. There has been no growth in revenue, earnings or cash flows and mainly because all these dropped in the 2013 financial year.
Revenue per Share is down by 4.2% and is flat over the past 5 and 10 years using 5 year running averages. EPS is down by 2.6% and by 16.9% per year over the past 5 and 10 years using the 5 year running averages. The CFPS is down by 1.3% and is flat over the past 5 and 10 years using 5 year running averages.
Return on Equity has been all over the place but has only been at or above 10% 2 years in the past 10 years. In 2012 it was 28% and 2014 it was negative 28%. There is no difference in comprehensive income and net income.
The Liquidity Ratio is generally good with a ratio at 3.71 in 2013 and it has a 5 year median of 1.38 a so, so value. The Debt Ratio is good with a value of 3.06 and a 5 year median value of 2.47. The Leverage and Debt/Equity Ratios are quite good at 1.49 and 0.49.
I cannot test the stock price via the Price/EPS Ratios as some P/E Ratios are negative due to negative earnings. The Graham Price is all over the place and so is not a good candidate either.
The 10 year median Price/Book Value per Share is 1.52. The current P/B Ratio is 2.92 a value some 92% higher and this stock price test suggests that the stock price is relatively expensive.
The 3 year median dividend yield is 2.14% and the current dividend yield at 2.59% is some 20% higher and suggests that the stock price is relatively cheap. However, the historical average dividend is higher at 3.83% and the historical median dividend yield is 3.26%, both of which is a lot higher than the current dividend yield and suggests that the stock price is relatively expensive.
The 10 year Price/Sales Ratio is 2.60 and the current P/S Ratio is 5.17 a value some 99% higher and this stock price test suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find only Hold recommendations, so the consensus recommendation would be a Hold. The 12 month stock price consensus is $3.38. This implies a total return of 11.97% with 9.39% from capital gains and 2.59% from dividends. This stock hit a high of $4.17 in December 2013 and has been tracking lower ever since.
The site of Watch List News talks about Paradigm Capital upgrading this stock from a sell to a hold rating. There is a very interesting review of this company on the Punch Card Blog. This entry is from November 2013, but it discusses the company's business model and what it says applies to today also.
Sound bit for Twitter and StockTwits is: Interesting company, but currently expensive. See my spreadsheet at hse.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse's 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is here Pulse Seismic.
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 dividends on this stock have jumped around a bit. They were at first increasing them, but when they stopped earning money after 2008, dividends were cancelled for 2009 and 2010. Dividends were restarted in 2011 and they were increased in 2012 and 2013. So far in 2014 they have remained flat. The dividends are up by 5.4% per year over the past 10 years, but down by 16.7% per year over the past 5 years.
I do not think dividends will increase in 2014 as they did not have positive earnings in 2013 and it is not expected that earnings for 2014 will cover the current dividend. As for Dividend Payout Ratio I cannot get a fix on this over the last few years as the DPR for EPS is sometimes negative. The 5 year median DPR for CFPS is just 4.2% because some years no dividends were paid. The DPR for CFPS for 2013 is 19%.
Investors have been making money with 5 and 10 year total return at 22.52% and 10.11% per year. The portion of this return attributable to dividends was at 2.48% and 4.20% per year over these periods. The portion of this return attributable to capital gain was at 20.03% and 5.91% per year over these periods.
Outstanding shares have been increasing somewhat over the past 5 and 10 years at2.1% and 3.9% per year. Shares have increased due to Stock Options and Share Issues and have decreased due to Buy Backs. There has been no growth in revenue, earnings or cash flows and mainly because all these dropped in the 2013 financial year.
Revenue per Share is down by 4.2% and is flat over the past 5 and 10 years using 5 year running averages. EPS is down by 2.6% and by 16.9% per year over the past 5 and 10 years using the 5 year running averages. The CFPS is down by 1.3% and is flat over the past 5 and 10 years using 5 year running averages.
Return on Equity has been all over the place but has only been at or above 10% 2 years in the past 10 years. In 2012 it was 28% and 2014 it was negative 28%. There is no difference in comprehensive income and net income.
The Liquidity Ratio is generally good with a ratio at 3.71 in 2013 and it has a 5 year median of 1.38 a so, so value. The Debt Ratio is good with a value of 3.06 and a 5 year median value of 2.47. The Leverage and Debt/Equity Ratios are quite good at 1.49 and 0.49.
I cannot test the stock price via the Price/EPS Ratios as some P/E Ratios are negative due to negative earnings. The Graham Price is all over the place and so is not a good candidate either.
The 10 year median Price/Book Value per Share is 1.52. The current P/B Ratio is 2.92 a value some 92% higher and this stock price test suggests that the stock price is relatively expensive.
The 3 year median dividend yield is 2.14% and the current dividend yield at 2.59% is some 20% higher and suggests that the stock price is relatively cheap. However, the historical average dividend is higher at 3.83% and the historical median dividend yield is 3.26%, both of which is a lot higher than the current dividend yield and suggests that the stock price is relatively expensive.
The 10 year Price/Sales Ratio is 2.60 and the current P/S Ratio is 5.17 a value some 99% higher and this stock price test suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find only Hold recommendations, so the consensus recommendation would be a Hold. The 12 month stock price consensus is $3.38. This implies a total return of 11.97% with 9.39% from capital gains and 2.59% from dividends. This stock hit a high of $4.17 in December 2013 and has been tracking lower ever since.
The site of Watch List News talks about Paradigm Capital upgrading this stock from a sell to a hold rating. There is a very interesting review of this company on the Punch Card Blog. This entry is from November 2013, but it discusses the company's business model and what it says applies to today also.
Sound bit for Twitter and StockTwits is: Interesting company, but currently expensive. See my spreadsheet at hse.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse's 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is here Pulse Seismic.
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, July 31, 2014
Lassonde Industries Inc. 2
I do not own this stock of Lassonde Industries Inc. (TSX-LAS.A, OTC-LSDAF). Although this stock is not the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
When I look at insider trading I find no insider selling and no insider buying. There are two classes of shares of Class A with 1 vote per share and Class B with 10 votes per share. The Pierre-Paul Lassonde, who is CEO and Chairman of the Board, owns 100% of Class B shares. The Class B Shares are worth around $393M.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.37, 11.58 and 13.11. These are slightly lower than the corresponding 10 year values of 10.34, 12.29 and 14.12. The current P/E Ratio is 18.11 based on the last 12 month EPS to the end of the first quarter which is an EPS of $6.60 and a current stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.
I get a Graham Price of $86.67. The 10 year Price/Graham Price Ratios are 0.85, 0.97 and 1.11. The current P/GP Ratio is 1.38 based on a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 1.77. The current P/B Ratio is 2.36 based on a stock price of $119.52 and a BVPS of $50.58. This stock test suggests that the current stock price is relatively expensive.
The 5 year Dividend Yield is 1.76% and the current Dividend Yield is 1.34% based on a dividend of $1.60 per year and a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive. The historical average and historical median dividend yields are even higher than the 5 year dividend yield at 1.93% and 1.83%, respectively.
There is an article in the G&M about Lassonde buying a US Juice company. There is a Newswire release talking about Lassonde acquiring more of Clement Pappas and Company Inc., another juice company. The Dividend Blogger recently talked about this company. An article on Seeking Alpha talks about this stock.
Sound bit for Twitter and StockTwits is: stock is current expensive. No matter how you look at the current stock price, this stock is currently expensive. I would rate it a Hold. If I held this stock I would not sell just because it is current overprice. However, I do not think I would buy any at this price. There are no analysts that follow this stock. See my spreadsheet at las.htm.
This is the second of two parts. The first part was posted on Wednesday, July 30, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont. Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry sauces. Its web site is here Lassonde Industries.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
When I look at insider trading I find no insider selling and no insider buying. There are two classes of shares of Class A with 1 vote per share and Class B with 10 votes per share. The Pierre-Paul Lassonde, who is CEO and Chairman of the Board, owns 100% of Class B shares. The Class B Shares are worth around $393M.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.37, 11.58 and 13.11. These are slightly lower than the corresponding 10 year values of 10.34, 12.29 and 14.12. The current P/E Ratio is 18.11 based on the last 12 month EPS to the end of the first quarter which is an EPS of $6.60 and a current stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.
I get a Graham Price of $86.67. The 10 year Price/Graham Price Ratios are 0.85, 0.97 and 1.11. The current P/GP Ratio is 1.38 based on a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 1.77. The current P/B Ratio is 2.36 based on a stock price of $119.52 and a BVPS of $50.58. This stock test suggests that the current stock price is relatively expensive.
The 5 year Dividend Yield is 1.76% and the current Dividend Yield is 1.34% based on a dividend of $1.60 per year and a stock price of $119.52. This stock test suggests that the current stock price is relatively expensive. The historical average and historical median dividend yields are even higher than the 5 year dividend yield at 1.93% and 1.83%, respectively.
There is an article in the G&M about Lassonde buying a US Juice company. There is a Newswire release talking about Lassonde acquiring more of Clement Pappas and Company Inc., another juice company. The Dividend Blogger recently talked about this company. An article on Seeking Alpha talks about this stock.
Sound bit for Twitter and StockTwits is: stock is current expensive. No matter how you look at the current stock price, this stock is currently expensive. I would rate it a Hold. If I held this stock I would not sell just because it is current overprice. However, I do not think I would buy any at this price. There are no analysts that follow this stock. See my spreadsheet at las.htm.
This is the second of two parts. The first part was posted on Wednesday, July 30, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont. Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry sauces. Its web site is here Lassonde Industries.
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, July 30, 2014
Lassonde Industries Inc.
On my other blog I am talking about my investments in Ballard and BlackBerry continue...
I do not own this stock of Lassonde Industries Inc. (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
Generally, this stock has a low dividend yield, but high dividend growth. The 5 year median dividend yield is 1.76%. The current dividend yield is 1.34%. The 5 and 10 year dividend growth is at 15.1% and 14% per year.
However, dividend increase really slowed down in 2014 coming in at just 2.6% compared to last year's 20%. Revenue, Earnings and Cash Flow increases slow in 2013. This could explain the slowdown in dividend increases. For example, Revenue per Share 5 year increase last year was 19.4% per year, but the 5 year increase to 2013 it is 13.11% per year, EPS 5 year increase last year was 12.5% per year and to 2013 it is 8.1% per year and CFPS 5 year increase last year was 13.3% per year and to 2013 it is 12.4% per year.
The 5 year Dividend Payout Ratio for EPS is at 23%. The one for 2013 was at 23% also. The 5 year median DPR for CFPS is at 13% and the one for 2013 is at 11%.
The shareholders of done well recently with the 5 and 10 year total return to date at 19.47% and 17.22% per year. The portion of this total return attributable to dividends is at 1.81% and 1.73% per year. The portion of this total return attributable to capital gains is at 17.67% and 15.49% per year.
The outstanding shares have increased by 1% over the past 5 years and are flat over the past 10 years. The growth in revenue, earnings and cash flow is very good over the past 5 and 10 years. For 2013 the revenue growth was very low at just 1.8%, EPS better at 2.2% and CFPS rather normal at 17.4%.
Revenue per Share is up by 14.4% and 15.1% per year over the past 5 and 10 years. EPS is up by 8.1% and 12.3% over the past 5 and 10 years. CFPS is up by 12.4% and 15.2% per year over the past 5 and 10 years.
The Return on Equity has been above 10% each year over the past 10 years. The ROE for 2013 was at 12.8% and the 5 year median is at 14.6%. The ROE on comprehensive income was at 17.7% for 2013 and the 5 year median is at 14.5%.
Basically the debt ratios are good. The Liquidity Ratio at 1.92 is very good and it has a 5 year median of 2.01. The Debt Ratio is 1.83 and the 5 year median ratio is 1.83. I would like to see the Leverage and Debt/Equity Ratios a bit lower but they are fine at 2.20 and 1.20. The 5 year median ratios are better at 1.89 and 0.89.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. It has a strong balance sheet and has proven it can make money. This has been a great stock for shareholders and some see it doing well going into the US. See my spreadsheet at las.htm.
This is the first of two parts. The second part will be posted on Thursday, July 31, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont. Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry sauces. Its web site is here Lassonde Industries.
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 Lassonde Industries Inc. (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.
Generally, this stock has a low dividend yield, but high dividend growth. The 5 year median dividend yield is 1.76%. The current dividend yield is 1.34%. The 5 and 10 year dividend growth is at 15.1% and 14% per year.
However, dividend increase really slowed down in 2014 coming in at just 2.6% compared to last year's 20%. Revenue, Earnings and Cash Flow increases slow in 2013. This could explain the slowdown in dividend increases. For example, Revenue per Share 5 year increase last year was 19.4% per year, but the 5 year increase to 2013 it is 13.11% per year, EPS 5 year increase last year was 12.5% per year and to 2013 it is 8.1% per year and CFPS 5 year increase last year was 13.3% per year and to 2013 it is 12.4% per year.
The 5 year Dividend Payout Ratio for EPS is at 23%. The one for 2013 was at 23% also. The 5 year median DPR for CFPS is at 13% and the one for 2013 is at 11%.
The shareholders of done well recently with the 5 and 10 year total return to date at 19.47% and 17.22% per year. The portion of this total return attributable to dividends is at 1.81% and 1.73% per year. The portion of this total return attributable to capital gains is at 17.67% and 15.49% per year.
The outstanding shares have increased by 1% over the past 5 years and are flat over the past 10 years. The growth in revenue, earnings and cash flow is very good over the past 5 and 10 years. For 2013 the revenue growth was very low at just 1.8%, EPS better at 2.2% and CFPS rather normal at 17.4%.
Revenue per Share is up by 14.4% and 15.1% per year over the past 5 and 10 years. EPS is up by 8.1% and 12.3% over the past 5 and 10 years. CFPS is up by 12.4% and 15.2% per year over the past 5 and 10 years.
The Return on Equity has been above 10% each year over the past 10 years. The ROE for 2013 was at 12.8% and the 5 year median is at 14.6%. The ROE on comprehensive income was at 17.7% for 2013 and the 5 year median is at 14.5%.
Basically the debt ratios are good. The Liquidity Ratio at 1.92 is very good and it has a 5 year median of 2.01. The Debt Ratio is 1.83 and the 5 year median ratio is 1.83. I would like to see the Leverage and Debt/Equity Ratios a bit lower but they are fine at 2.20 and 1.20. The 5 year median ratios are better at 1.89 and 0.89.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. It has a strong balance sheet and has proven it can make money. This has been a great stock for shareholders and some see it doing well going into the US. See my spreadsheet at las.htm.
This is the first of two parts. The second part will be posted on Thursday, July 31, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of fruit and vegetable juices and drinks marketed under brands such as Everfresh, Fairlee, Flavür, Fruité, Graves, Oasis and Rougemont. Lassonde is also the second largest producer of store brand ready-to-drink fruit juices and drinks in the United States and a major producer of cranberry sauces. Its web site is here Lassonde Industries.
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, July 29, 2014
Inter Pipeline Ltd. 2
I do not own this stock of Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF). In 2008, a friend had asked me about this pipeline and I had no information on it, so I investigated it. It is a utility and I follow and have lots of utility stocks.
When I look at insider trading, I find no insider selling, but some insider buying at $1.7M at around 0.02% of the market cap. In other words, a relatively very small amount of buying is going on. However, there is recent insider buying at between $30 and $33 per share and that is a positive.
The company does not have stock options per se, but a number of stock options like vehicles called Deferred Share Rights, Deferred Unit Right, Options Unit Incentive, Rights Deferred Share Rights, Unit Appreciation Right and Options Unit Incentive Options. The outstanding shares were not increased in 2013 due to any sort of stock option. The CEO has shares worth $5.8M. The old chairman seems to still have shares worth around $132.3M.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.82, 14.30 and 16.78. The 10 year corresponding P/E Ratios are similar. These P/E Ratios are relatively normal for a utility. The current P/E Ratio is 29.59 based on a stock price of $34.62 and 2014 EPS estimate of $1.17. This stock price test suggests that the stock is relatively expensive.
I get a Graham Price of $14.31. The 10 year low, median and high median Price/Graham Price Ratios are 1.05, 1.14 and 1.32. These P/GP Ratios are relatively normal for a utility. The current P/GP Ratio is 2.42. This stock price test suggests that the stock is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 2.03. This is a relatively normal value for a utility. The current P/B Ratio is 4.45 a value some 120% higher. This stock price test suggests that the stock is relatively expensive.
The 5 year median dividend yield is 5.75%. This is a little high for a utility. The current dividend yield at 3.73% is some 35% lower. It was expected that old income trusts would end up with dividend yields in the 4 to 5% range and this stock has a dividend yield lower than this. I cannot test against the historical dividend yields because they are very high due to the fact that this stock used to be an income trust company.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendations would be a Buy. The 12 month stock price consensus is $32.70. This implies a total loss of 1.82% with a capital loss of 5.55% and dividends at 3.73%. Obviously, the stock price is moving faster than analysts' recommendations.
The site of Sys-Con Media talks about IPL completing the first phase of Polaris Pipeline Expansion in July 2014. A recent article in the Financial Post talks about a $100M expansion of the Saskatchewan system.
Sound bit for Twitter and StockTwits is: currently overpriced. It would seem to me that this stock is currently relatively quite expensive. Personally, I would want them to get there Liquidity Ratio under control before I would want to invest in this stock.
However, if I owned this stock I would not sell just because it is overpriced. If you hold stocks for the long term they go from being overpriced to being underpriced and back to being overpriced. I would still worry about the Liquidity Ratio. See my spreadsheet at ipl.htm.
This is the second of two parts. The first part was posted on Monday, July 28, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
When I look at insider trading, I find no insider selling, but some insider buying at $1.7M at around 0.02% of the market cap. In other words, a relatively very small amount of buying is going on. However, there is recent insider buying at between $30 and $33 per share and that is a positive.
The company does not have stock options per se, but a number of stock options like vehicles called Deferred Share Rights, Deferred Unit Right, Options Unit Incentive, Rights Deferred Share Rights, Unit Appreciation Right and Options Unit Incentive Options. The outstanding shares were not increased in 2013 due to any sort of stock option. The CEO has shares worth $5.8M. The old chairman seems to still have shares worth around $132.3M.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.82, 14.30 and 16.78. The 10 year corresponding P/E Ratios are similar. These P/E Ratios are relatively normal for a utility. The current P/E Ratio is 29.59 based on a stock price of $34.62 and 2014 EPS estimate of $1.17. This stock price test suggests that the stock is relatively expensive.
I get a Graham Price of $14.31. The 10 year low, median and high median Price/Graham Price Ratios are 1.05, 1.14 and 1.32. These P/GP Ratios are relatively normal for a utility. The current P/GP Ratio is 2.42. This stock price test suggests that the stock is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 2.03. This is a relatively normal value for a utility. The current P/B Ratio is 4.45 a value some 120% higher. This stock price test suggests that the stock is relatively expensive.
The 5 year median dividend yield is 5.75%. This is a little high for a utility. The current dividend yield at 3.73% is some 35% lower. It was expected that old income trusts would end up with dividend yields in the 4 to 5% range and this stock has a dividend yield lower than this. I cannot test against the historical dividend yields because they are very high due to the fact that this stock used to be an income trust company.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendations would be a Buy. The 12 month stock price consensus is $32.70. This implies a total loss of 1.82% with a capital loss of 5.55% and dividends at 3.73%. Obviously, the stock price is moving faster than analysts' recommendations.
The site of Sys-Con Media talks about IPL completing the first phase of Polaris Pipeline Expansion in July 2014. A recent article in the Financial Post talks about a $100M expansion of the Saskatchewan system.
Sound bit for Twitter and StockTwits is: currently overpriced. It would seem to me that this stock is currently relatively quite expensive. Personally, I would want them to get there Liquidity Ratio under control before I would want to invest in this stock.
However, if I owned this stock I would not sell just because it is overpriced. If you hold stocks for the long term they go from being overpriced to being underpriced and back to being overpriced. I would still worry about the Liquidity Ratio. See my spreadsheet at ipl.htm.
This is the second of two parts. The first part was posted on Monday, July 28, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
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, July 28, 2014
Inter Pipeline Ltd.
On my other blog I am talking about negative investment reports continue...
I do not own this stock of Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF). In 2008, a friend had asked me about this pipeline and I had no information on it, so I investigated it. It is a utility and I follow and have lots of utility stocks.
This is a dividend growth stock with a good dividend and moderate growth. The current dividend is 3.73% and the 5 year median dividend is 5.75%. The 5 and 10 year dividend growth is at 6.6% and 4.8% per year. The last dividend increase occurred in 2013 and was for 13%. Dividend increases have been good lately, but there were no increases in 2008 and 2009.
The 5 year median Dividend Payout Ratio for EPS is 98%. There is a problem in that in 2013 there was an earnings loss. The DPR for 2014 is expected to be 110% and then decrease from there. The 5 year median DPR for CFPS is 70%. The DPR for CFPS for 2013 was 75%. In 2014 the DPR for CFPS is expected to be 79% and then start to decrease.
Shareholders have been making money from this stock recently with the 5 and 10 year total return at 32.60% and 20.14% per year. The portion of this return attributable to dividends is at 6.38% and 5.92% per year over these periods. The portion of this return attributable to capital gains is at 26.21% and 14.22% per year over these periods.
Outstanding shares have increase by 6.6% and 9.01% per year over the past 5 and 10 years. The increases are due to DRIP, Stock Options and Share Issues. They also issued more shares in 2014 and this year so far they have increased the shares by another 4.4%. Because of the increasing shares, the values per shares become much more important.
Revenue, Earnings and Cash Flow growth is much better over the past 10 years than over the past 5 years. It is only Revenue per Share that shows negative growth over the past 5 years. Revenue is up by 22.6% and 2.2% per year over the past 5 and 10 years. Revenue per Share is down by 4.2% and up by 12.4% per year over the past 5 and 10 years. The company did suffer in the 2008 recession, but growth has been uneven since then.
Since there was an earnings loss in 2013, I will look at the 5 year running averages for EPS. Over the past 5 and 10 years EPS is up by 7.8% and 18.6% per year. EPS took a hit in 2008 also and until this year they have been growing. The earnings loss for 2013 was due to the company's reorganization and so is not serious.
Cash Flow has done the best and Cash Flow is up by 11% and 18.2% per year over the past 5 and 10 years. CFPS is up by 4.2% and 8.4% per year over the past 5 and 10 years.
The Return on Equity was below 10% 4 times in the past 10 years. In two of these years, 2007 and 2013 it was because earnings were negative. Prior to 10 years ago, ROE was very low. The 5 year median ROE was just 1.6%. The ROE on comprehensive income for 2013 was very low at just 1.3%.
The debt ratios are not very good. The Liquidity Ratio for 2013 is 0.15. It has to be at 1.00 before current assets can cover current liabilities. Part of this, but a very small part is the current portion of the long term debt. Another small part is outstanding current commercial papers. However, when you add that back in the Liquidity Ratio is 0.52. If you add in cash flow after dividends, it only rises to 0.72.
The Debt Ratio is a bit low at 1.45 and the Leverage and Debt/Equity Ratios are a bit high at 3.21 and 2.21 for 2013.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. The biggest current liabilities have to do with decommissioning obligations, environment liabilities and construction reclamation. Personally, I would want them to get their Liquidity Ratio under control before I would want to invest in this stock. See my spreadsheet at ipl.htm.
This is the first of two parts. The second part will be posted on Tuesday, July 29, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
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 Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF). In 2008, a friend had asked me about this pipeline and I had no information on it, so I investigated it. It is a utility and I follow and have lots of utility stocks.
This is a dividend growth stock with a good dividend and moderate growth. The current dividend is 3.73% and the 5 year median dividend is 5.75%. The 5 and 10 year dividend growth is at 6.6% and 4.8% per year. The last dividend increase occurred in 2013 and was for 13%. Dividend increases have been good lately, but there were no increases in 2008 and 2009.
The 5 year median Dividend Payout Ratio for EPS is 98%. There is a problem in that in 2013 there was an earnings loss. The DPR for 2014 is expected to be 110% and then decrease from there. The 5 year median DPR for CFPS is 70%. The DPR for CFPS for 2013 was 75%. In 2014 the DPR for CFPS is expected to be 79% and then start to decrease.
Shareholders have been making money from this stock recently with the 5 and 10 year total return at 32.60% and 20.14% per year. The portion of this return attributable to dividends is at 6.38% and 5.92% per year over these periods. The portion of this return attributable to capital gains is at 26.21% and 14.22% per year over these periods.
Outstanding shares have increase by 6.6% and 9.01% per year over the past 5 and 10 years. The increases are due to DRIP, Stock Options and Share Issues. They also issued more shares in 2014 and this year so far they have increased the shares by another 4.4%. Because of the increasing shares, the values per shares become much more important.
Revenue, Earnings and Cash Flow growth is much better over the past 10 years than over the past 5 years. It is only Revenue per Share that shows negative growth over the past 5 years. Revenue is up by 22.6% and 2.2% per year over the past 5 and 10 years. Revenue per Share is down by 4.2% and up by 12.4% per year over the past 5 and 10 years. The company did suffer in the 2008 recession, but growth has been uneven since then.
Since there was an earnings loss in 2013, I will look at the 5 year running averages for EPS. Over the past 5 and 10 years EPS is up by 7.8% and 18.6% per year. EPS took a hit in 2008 also and until this year they have been growing. The earnings loss for 2013 was due to the company's reorganization and so is not serious.
Cash Flow has done the best and Cash Flow is up by 11% and 18.2% per year over the past 5 and 10 years. CFPS is up by 4.2% and 8.4% per year over the past 5 and 10 years.
The Return on Equity was below 10% 4 times in the past 10 years. In two of these years, 2007 and 2013 it was because earnings were negative. Prior to 10 years ago, ROE was very low. The 5 year median ROE was just 1.6%. The ROE on comprehensive income for 2013 was very low at just 1.3%.
The debt ratios are not very good. The Liquidity Ratio for 2013 is 0.15. It has to be at 1.00 before current assets can cover current liabilities. Part of this, but a very small part is the current portion of the long term debt. Another small part is outstanding current commercial papers. However, when you add that back in the Liquidity Ratio is 0.52. If you add in cash flow after dividends, it only rises to 0.72.
The Debt Ratio is a bit low at 1.45 and the Leverage and Debt/Equity Ratios are a bit high at 3.21 and 2.21 for 2013.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. The biggest current liabilities have to do with decommissioning obligations, environment liabilities and construction reclamation. Personally, I would want them to get their Liquidity Ratio under control before I would want to invest in this stock. See my spreadsheet at ipl.htm.
This is the first of two parts. The second part will be posted on Tuesday, July 29, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
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, July 25, 2014
Contrans Group Inc. 2
I do not own this stock of Contrans Group Inc. (TSX-CSS, OTC-CTFIF). I got this stock off an article in the Globe and Mail called "15 dividend stocks where payouts are expected to grow". This number cruncher article dated in February 2013 was looking for companies with earnings growth over the last 12 months and a decent Dividend Payout Ratio. (You may not be able to access this article beyond the pay wall.)
In the insider trading reporting there is a very small amount of insider selling and no insider buying. There are stock options but there was no increase in outstanding shares in 2013 due to stock options. The CEO owns almost all the Class B shares worth around $18.3M. He also has Class A shares worth around $50.9M. The CEO is also chairman of the Board. There is an officer that owns shares worth around $6M and a director with shares worth around $3.4M. So, there is good insider ownership.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.53, 13.84 and 16.05. The current P/E Ratio is 14.59 based on a stock price of $14.74 and 2014 EPS estimate of $1.01. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $11.62. The 10 year low, median and high median Price/Graham Price Ratios are 0.87, 1.06 and 1.27. The current P/GP Ratio is 1.27. This stock price test suggests that the stock price is relatively reasonable, but at the very high end of that range.
I get a 10 year median Price/Book Value per Share Ratio of 1.87. The current P/B Ratio is 2.48 a value some 32% higher. . This stock price test suggests that the stock price is relatively expensive.
The 5 year median dividend yield is 4.38% and the current dividend yield is 4.07% a value some 7% higher. Since dividend yield used to be a lot higher, using historical dividend yield in a stock price test makes no sense. However, a 4.07% dividend yield is a good one. The 5 year median dividend yield stock price test suggests that the stock price is relatively reasonable.
The analysts' recommendations are Buy and Hold. The consensus recommendation is a Hold. The 12 month consensus stock price is $15.50. This implies a total return of 9.23%, with 4.07% from dividends and 5.16% from capital gains.
A recent article in the Financial Post suggest for the trucking industry in Canada demand is beginning to overtake supply. The Dividend Blogger talks about this stock and its dividend increases. He thinks that if the 1 year return is less than the dividend increase then there might be a buying opportunity. An article in Trucking News talks about this company selling off its waste collection subsidiaries.
Sound bit for Twitter and StockTwits is: stock price is probably still reasonable. Stock rose some 32.8% last year and some 10.99% so far this year. Dividends increased 25% in 2013 and 20% in 2014. So over the past two years the capital gain is close to the dividend increases.
You expect that that the capital gains and the dividend increase would be roughly the same. So, analysts' expectations of 5.16% further rise would put the capital gain increase a bit higher than dividend increases. See my spreadsheet at css.htm.
This is the second of two parts. The first part was posted on Thursday, July 24, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Contrans Group Inc. is engaged in freight transportation. It provides freight transportation services to shippers located in Canada, as well as in the eastern, mid-western and southern United States. Its web site is here Contrans.
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.
In the insider trading reporting there is a very small amount of insider selling and no insider buying. There are stock options but there was no increase in outstanding shares in 2013 due to stock options. The CEO owns almost all the Class B shares worth around $18.3M. He also has Class A shares worth around $50.9M. The CEO is also chairman of the Board. There is an officer that owns shares worth around $6M and a director with shares worth around $3.4M. So, there is good insider ownership.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.53, 13.84 and 16.05. The current P/E Ratio is 14.59 based on a stock price of $14.74 and 2014 EPS estimate of $1.01. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $11.62. The 10 year low, median and high median Price/Graham Price Ratios are 0.87, 1.06 and 1.27. The current P/GP Ratio is 1.27. This stock price test suggests that the stock price is relatively reasonable, but at the very high end of that range.
I get a 10 year median Price/Book Value per Share Ratio of 1.87. The current P/B Ratio is 2.48 a value some 32% higher. . This stock price test suggests that the stock price is relatively expensive.
The 5 year median dividend yield is 4.38% and the current dividend yield is 4.07% a value some 7% higher. Since dividend yield used to be a lot higher, using historical dividend yield in a stock price test makes no sense. However, a 4.07% dividend yield is a good one. The 5 year median dividend yield stock price test suggests that the stock price is relatively reasonable.
The analysts' recommendations are Buy and Hold. The consensus recommendation is a Hold. The 12 month consensus stock price is $15.50. This implies a total return of 9.23%, with 4.07% from dividends and 5.16% from capital gains.
A recent article in the Financial Post suggest for the trucking industry in Canada demand is beginning to overtake supply. The Dividend Blogger talks about this stock and its dividend increases. He thinks that if the 1 year return is less than the dividend increase then there might be a buying opportunity. An article in Trucking News talks about this company selling off its waste collection subsidiaries.
Sound bit for Twitter and StockTwits is: stock price is probably still reasonable. Stock rose some 32.8% last year and some 10.99% so far this year. Dividends increased 25% in 2013 and 20% in 2014. So over the past two years the capital gain is close to the dividend increases.
You expect that that the capital gains and the dividend increase would be roughly the same. So, analysts' expectations of 5.16% further rise would put the capital gain increase a bit higher than dividend increases. See my spreadsheet at css.htm.
This is the second of two parts. The first part was posted on Thursday, July 24, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Contrans Group Inc. is engaged in freight transportation. It provides freight transportation services to shippers located in Canada, as well as in the eastern, mid-western and southern United States. Its web site is here Contrans.
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, July 24, 2014
Contrans Group Inc.
I do not own this stock of Contrans Group Inc. (TSX-CSS, OTC-CTFIF). I got this stock off an article in the Globe and Mail called "15 dividend stocks where payouts are expected to grow". This number cruncher article dated in February 2013 was looking for companies with earnings growth over the last 12 months and a decent Dividend Payout Ratio. (You may not be able to access this article beyond the pay wall.)
This Company used to be an income trust of Contrans Income Fund in 2008 and converted to a corporation in 2009. Dividends were cut some 74.4% between 2008 and 2010. Dividends were flat when it was an income trust, but since changing to a corporation, they have been increasing their dividends. The last dividend increase was for 20% in 2014.
Dividend payments are down over the past 5 and 10 years, but this does not reflect on the current dividend policy. The dividend has a very good yield at 4.07%. The median dividend increase over the past 4 years is at 18.75%.
As the article I read pointed out, the Dividend Payout Ratios are good. The DPR for EPS was at 55% for 2013 and has a 5 year median of 67%. However, this DPR for EPS has been trending lower over the past 5 years. The DPR for CFPS was 26% for 2013 and has a 5 year median of 31%.
The 5 and 10 year total return on this stock is at 20.75% and 6.73% per year. The portion of this return attributable to dividends was 4.69% and 6.24% per year. The portion of this return attributable to capital gains was 16.06% and 0.49% per year. In the future, dividends should be a lower portion of the total return, but there is reason to think that capital gains portion of the return will increase. That is because capital gains tend to match dividend increases for dividend growth stocks.
The company has two classes of shares, Class A shares with one vote each (these are sold on the TSX) and Class B with 10 votes each. Class B shares are owned by insiders. The total outstanding shares have increased by 2.7% and 3.6% per year over the past 5 and 10 years. Shares have increased due to Share Issues and have decreased due to Buy Backs.
Revenue, earnings and cash flow growth over the past 5 and 10 years has not been great, but the company was hit hard by the 2008 recession. Revenue, earnings and cash flow has been growing over the past 3 years up to 2013. Because outstanding shares have been growing, per share values are important.
Revenue has grown at 3.2% and 6.9% per year over the past 5 and 10 years. Revenue per Share has been flat over the past 5 years and has grown at 3.6% per year over the past 10 years. EPS is down by 3.2% per year over the past 5 years and up by 1.4% over the past 10 years. . Cash Flow per Share has been flat over the past 5 years and has grown at 3.5% per year over the past 10 years.
The Return on Equity has only been below 10% 1 year in the past 10 years and that was in 2010. The ROE for 2013 was 14.8% and the 5 year median is 14.8%. There is no difference between the net income and the comprehensive income for this company. This could point to the earnings being of good quality.
The Liquidity Ratio for 2013 is a little low at 1.04. If you add in cash flow after dividends the ratio becomes 1.67. The Debt Ratio is quite good at 2.05. The Leverage and Debt/Equity Ratios are also quite good at 1.95 and 0.95.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. The dividend yield and the dividend growth is currently quite good. See my spreadsheet at css.htm.
This is the first of two parts. The second part will be posted on Friday, July 25, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Contrans Group Inc. is engaged in freight transportation. It provides freight transportation services to shippers located in Canada, as well as in the eastern, mid-western and southern United States. Its web site is here Contrans.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This Company used to be an income trust of Contrans Income Fund in 2008 and converted to a corporation in 2009. Dividends were cut some 74.4% between 2008 and 2010. Dividends were flat when it was an income trust, but since changing to a corporation, they have been increasing their dividends. The last dividend increase was for 20% in 2014.
Dividend payments are down over the past 5 and 10 years, but this does not reflect on the current dividend policy. The dividend has a very good yield at 4.07%. The median dividend increase over the past 4 years is at 18.75%.
As the article I read pointed out, the Dividend Payout Ratios are good. The DPR for EPS was at 55% for 2013 and has a 5 year median of 67%. However, this DPR for EPS has been trending lower over the past 5 years. The DPR for CFPS was 26% for 2013 and has a 5 year median of 31%.
The 5 and 10 year total return on this stock is at 20.75% and 6.73% per year. The portion of this return attributable to dividends was 4.69% and 6.24% per year. The portion of this return attributable to capital gains was 16.06% and 0.49% per year. In the future, dividends should be a lower portion of the total return, but there is reason to think that capital gains portion of the return will increase. That is because capital gains tend to match dividend increases for dividend growth stocks.
The company has two classes of shares, Class A shares with one vote each (these are sold on the TSX) and Class B with 10 votes each. Class B shares are owned by insiders. The total outstanding shares have increased by 2.7% and 3.6% per year over the past 5 and 10 years. Shares have increased due to Share Issues and have decreased due to Buy Backs.
Revenue, earnings and cash flow growth over the past 5 and 10 years has not been great, but the company was hit hard by the 2008 recession. Revenue, earnings and cash flow has been growing over the past 3 years up to 2013. Because outstanding shares have been growing, per share values are important.
Revenue has grown at 3.2% and 6.9% per year over the past 5 and 10 years. Revenue per Share has been flat over the past 5 years and has grown at 3.6% per year over the past 10 years. EPS is down by 3.2% per year over the past 5 years and up by 1.4% over the past 10 years. . Cash Flow per Share has been flat over the past 5 years and has grown at 3.5% per year over the past 10 years.
The Return on Equity has only been below 10% 1 year in the past 10 years and that was in 2010. The ROE for 2013 was 14.8% and the 5 year median is 14.8%. There is no difference between the net income and the comprehensive income for this company. This could point to the earnings being of good quality.
The Liquidity Ratio for 2013 is a little low at 1.04. If you add in cash flow after dividends the ratio becomes 1.67. The Debt Ratio is quite good at 2.05. The Leverage and Debt/Equity Ratios are also quite good at 1.95 and 0.95.
Sound bit for Twitter and StockTwits is: Dividend Growth Stock. The dividend yield and the dividend growth is currently quite good. See my spreadsheet at css.htm.
This is the first of two parts. The second part will be posted on Friday, July 25, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Contrans Group Inc. is engaged in freight transportation. It provides freight transportation services to shippers located in Canada, as well as in the eastern, mid-western and southern United States. Its web site is here Contrans.
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, July 23, 2014
Canam Group Inc.
On my other blog I am today giving answers, as best as I can, to other questions that should probably be asked of a dividend stock portfolio continue...
I do not own this stock of Canam Group Inc. (TSX-CAM, OTC- CNMGA). I started following this stock in September 2009 as I read a favorable review on it. I am interested in small cap companies that pay dividends, so this company fits into what I want to investigate.
I bought this at the end part of 2011 because I thought that the market had gone overboard in punishing the stock because of a dividend cut and the company was having a tough time. I thought I could make a few thousand dollars for my RRIF account and that is what I did. However, looking back at this it appears I sold far too soon.
This stock is not the normal dividend growth stock I generally like investing in. This stock has dividends, but they only pay them when they can afford to and this means that stopped dividends on occasion. They have paid dividends in 6 of the last 10 years. They have just resumed dividend payments in 2014 after stopping them mid-way through 2011.
I made a return of 105% when I held this stock for a short period. If I waited another year I would have made over 200%. Investors over the past 5 and 10 years have had a total return of 14.77% and 11.22% per year. The portion of this return attributable to capital gain is 13.85% and 9.85% per year. The portion of this return attributable to dividends is 0.92% and 1.37% per year.
Revenue, Earnings, and Cash Flow has just start to increase over the past 2 years. Analysts expect that this will continue over the next few years.
The company's debt ratios are good with the Liquidity Ratio at 2.03 and the 5 year median at 2.14 and the Debt Ratio at 1.98 and the 5 year ratio at 1.98. This suggests that the company has survivability. The Leverage and Debt/Equity Ratios are a little high at 2.03 and 1.03.
The analysts' recommendations on this stock are Strong Buy and Buy with the consensus recommendation a Buy. The 12 month stock price consensus is $17.80. This implies a total return of 31.67% with 1.17% from dividends and 30.50% from capital gains.
Sound bit for Twitter and StockTwits is: could make money on this stock. Recessions seem to hit this company hard. It was just recovering form 2000, when it got hit with 2008. Also, when they have problems, they cut dividends and then the stock price gets slammed. The stock price recovers well when they restart dividends. Is there money to be made in the ups and downs of this company? This could be fun. See my spreadsheet at cam.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canam Group specializes in the design and fabrication of construction products and solutions for the commercial, industrial, institutional, multi-unit residential, and bridge and highway infrastructure markets. This company has offices in Canada, US, India, Romania and Hong Kong. Its web site is here Canam.
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 Canam Group Inc. (TSX-CAM, OTC- CNMGA). I started following this stock in September 2009 as I read a favorable review on it. I am interested in small cap companies that pay dividends, so this company fits into what I want to investigate.
I bought this at the end part of 2011 because I thought that the market had gone overboard in punishing the stock because of a dividend cut and the company was having a tough time. I thought I could make a few thousand dollars for my RRIF account and that is what I did. However, looking back at this it appears I sold far too soon.
This stock is not the normal dividend growth stock I generally like investing in. This stock has dividends, but they only pay them when they can afford to and this means that stopped dividends on occasion. They have paid dividends in 6 of the last 10 years. They have just resumed dividend payments in 2014 after stopping them mid-way through 2011.
I made a return of 105% when I held this stock for a short period. If I waited another year I would have made over 200%. Investors over the past 5 and 10 years have had a total return of 14.77% and 11.22% per year. The portion of this return attributable to capital gain is 13.85% and 9.85% per year. The portion of this return attributable to dividends is 0.92% and 1.37% per year.
Revenue, Earnings, and Cash Flow has just start to increase over the past 2 years. Analysts expect that this will continue over the next few years.
The company's debt ratios are good with the Liquidity Ratio at 2.03 and the 5 year median at 2.14 and the Debt Ratio at 1.98 and the 5 year ratio at 1.98. This suggests that the company has survivability. The Leverage and Debt/Equity Ratios are a little high at 2.03 and 1.03.
The analysts' recommendations on this stock are Strong Buy and Buy with the consensus recommendation a Buy. The 12 month stock price consensus is $17.80. This implies a total return of 31.67% with 1.17% from dividends and 30.50% from capital gains.
Sound bit for Twitter and StockTwits is: could make money on this stock. Recessions seem to hit this company hard. It was just recovering form 2000, when it got hit with 2008. Also, when they have problems, they cut dividends and then the stock price gets slammed. The stock price recovers well when they restart dividends. Is there money to be made in the ups and downs of this company? This could be fun. See my spreadsheet at cam.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canam Group specializes in the design and fabrication of construction products and solutions for the commercial, industrial, institutional, multi-unit residential, and bridge and highway infrastructure markets. This company has offices in Canada, US, India, Romania and Hong Kong. Its web site is here Canam.
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, July 22, 2014
Ballard Power Systems Inc.
I do not own this stock of Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), but I used to. Back in 1997, I read about Ballard and fell in love with the idea of cars running with fuel cells. I could help save the environment and also make some money. It was very attractive. I sold this stock in 2006 because it had lost its attraction. It did not seem that Ballard fuel cells would be in any car anytime soon.
I lost on this stock by 5.32% per year or almost 38% of the money I invested. I was ahead in 2000, but the stock started to fall in October 2000 and never recovered. The stock has been rising since early 2013 and has continued to rise in 2014. However, it is still some 75% lower than when I bought it in 1997.
Have investors made money lately? Over the past 5 years investors have made 17.57% per year. This was all capital gain, of course. This capital gain could also disappear again as quickly as it came. Over the 10 years investors have lost 5.7% per year. Again, this is all capital loss.
The good news is that this company does have revenue. The bad news is that it does not make any profit or cash flow from this revenue. Revenue peaked in 2003 and has fluctuated, but basically has been declining since. However, analysts expect revenues to pick up again over the next few year.
As far as earnings go, the company had one year of profit in the past 10 years and that was in 2005. The company has had no positive cash flow in any year in the past 10 years.
Another good thing is the debt ratios. The Liquidity Ratio is 2.30, the Debt Ratio is 2.30 and the Leverage and Debt/Equity Ratios are 1.71 and 0.71. These are all great ratios.
There are not many analysts following this stock. When I look at analysts' recommendations I find Strong Buy and Hold recommendations. The consensus recommendation would therefore be a Buy. The 12 month consensus stock price is $3.88 US$. This is some 6.3% lower than today's US$ price of $4.14.
There is an investors news alert on Ballard on Market News Call after the stock jumped up 5% today. There is also a news article in the Wall Street PR about Ballard Power profiting from Toyota producing a fuel cell car. However, I heard all this before in 1997 when I first invested in this company. The fuel cell car went nowhere then. Is it different this time?
Sound bit for Twitter and StockTwits is: invest on hope, not financials. That is people are still probably investing in this company as I did, on hope, not because of the financials. I thought it was good that the company had revenue at the time I bought it. However, at some point a company must make earnings and cash flow. On the other hand, this company has survived a long time without much of either. See my spreadsheet at bld.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Ballard Power Systems, Inc. is a global leader in PEM (proton exchange membrane) fuel cell technology. They provide clean energy fuel cell products enabling optimized power systems for a range of applications. Ballard offers smarter solutions for a clean energy future. Its web site is here Ballard.
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 lost on this stock by 5.32% per year or almost 38% of the money I invested. I was ahead in 2000, but the stock started to fall in October 2000 and never recovered. The stock has been rising since early 2013 and has continued to rise in 2014. However, it is still some 75% lower than when I bought it in 1997.
Have investors made money lately? Over the past 5 years investors have made 17.57% per year. This was all capital gain, of course. This capital gain could also disappear again as quickly as it came. Over the 10 years investors have lost 5.7% per year. Again, this is all capital loss.
The good news is that this company does have revenue. The bad news is that it does not make any profit or cash flow from this revenue. Revenue peaked in 2003 and has fluctuated, but basically has been declining since. However, analysts expect revenues to pick up again over the next few year.
As far as earnings go, the company had one year of profit in the past 10 years and that was in 2005. The company has had no positive cash flow in any year in the past 10 years.
Another good thing is the debt ratios. The Liquidity Ratio is 2.30, the Debt Ratio is 2.30 and the Leverage and Debt/Equity Ratios are 1.71 and 0.71. These are all great ratios.
There are not many analysts following this stock. When I look at analysts' recommendations I find Strong Buy and Hold recommendations. The consensus recommendation would therefore be a Buy. The 12 month consensus stock price is $3.88 US$. This is some 6.3% lower than today's US$ price of $4.14.
There is an investors news alert on Ballard on Market News Call after the stock jumped up 5% today. There is also a news article in the Wall Street PR about Ballard Power profiting from Toyota producing a fuel cell car. However, I heard all this before in 1997 when I first invested in this company. The fuel cell car went nowhere then. Is it different this time?
Sound bit for Twitter and StockTwits is: invest on hope, not financials. That is people are still probably investing in this company as I did, on hope, not because of the financials. I thought it was good that the company had revenue at the time I bought it. However, at some point a company must make earnings and cash flow. On the other hand, this company has survived a long time without much of either. See my spreadsheet at bld.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Ballard Power Systems, Inc. is a global leader in PEM (proton exchange membrane) fuel cell technology. They provide clean energy fuel cell products enabling optimized power systems for a range of applications. Ballard offers smarter solutions for a clean energy future. Its web site is here Ballard.
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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