Wednesday, April 26, 2017

Power Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth stock. Stock price is relatively cheap to relatively reasonable. However, Life Insurance companies are having a rough time with the current very low interest rates. If you buy Life Insurance companies you need to take this into consideration. See my spreadsheet on Power Financial Corp.

I own this stock of Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.

This is a life insurance company so I have just done ok with it. I expect to do better long term. I have had this stock for 15 years and have earned 7.91% per year with 3.50% from capital gains and 4.41% from dividends. On the other hand the dividends have paid for 64% of the cost of my stock. I am earning a dividend yield of 8.7% on my original stock price. Life Insurance companies have had a hard time dealing with low interest rates and they are just starting to do better.

This stock used to have moderate dividend yields and good dividend increases. Dividend yields used to be in the 2% range and the increases were generally above 15%. However, there were no increases in dividends between 2010 and 2015. Now dividends are good and the dividend increases are low.

The current dividend yield is 4.81% and the dividend growth over the past 5 and 10 years is at 2% and 4.5%. Why it is so low is because no dividend increases were given between 2010 and 2015. The last dividend increase occurred in 2017 and it was for 5.1%. I do not see the low interest rates changing much or soon. So I see dividend yield and dividend increases changing much or soon either.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.38, 11.87 and 12.95. The corresponding 10 year values are 10.48, 12.00 and 13.55. The historical ones are 10.25, 12 and 14.78. These are pretty consistent. The current P/E Ratio is 10.52. This stock price testing suggests that the stock price is relatively on the cheap side.

I get a Graham Price of $41.69. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 0.93 and 1.08. The current P/GP Ratio is 0.82 based on a stock price of $34.29. This stock price testing suggests that the stock price is relatively reasonable and below the median and almost cheap.

The 10 year Price/Book Value per Share Ratio is 1.68. The current P/B Ratio is 1.45 based on a stock price of $34.29 and BVPS of $23.70 based on year end outstanding shares. The current P/B Ratio is some 14% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The current dividend yield is 4.81% based on dividends of $1.65 and a stock price of $34.29. The historical median dividend yield is 3.38% a values some 42% lower. This stock price testing suggests that the stock price is relatively cheap. This is because the current dividend yield is more than 20% lower than the historical median dividend yield. However the current dividend yield is not up to the historical high which is 6.05%.

When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 months stock price consensus is $37.43. This implies a total return of $13.97% with 4.81% from dividends and 9.16% from capital gains.

Doug Wharley on The Cerbat Gem talks about Scotiabank confirming their target price of $38.00 for this stock. Lauren Steadman on Transcript Daily says that Royal Bank Analysts have cut their target price from $36.00 to $35.00. Will Ashworth at Motley Fool talks about Power Financial investing in Wealthsimple and how this was a great idea. See what analysts are saying about this company on Stock Chase.

This company is a holding and management company. Its operations provide a range of individual and corporate financial and fiduciary services in North America and Europe. It holds interest in the following companies: Great-West Lifeco, Great-West Life, London Life, Canada Life, Great-West Life & Annuity, Putnam Investments, IGM Financial, Investors Group Mackenzie Financial, and Pargesa Group. Its web site is here Power Financial Corp.

The last stock I wrote about was about was Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more . The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more on Friday, April 28, 2017 around 5 pm. Tomorrow on my other blog I will write about The Other Side blog... learn more on Thursday, April 27, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Monday, April 24, 2017

Fortis Inc.

Sound bite for Twitter and StockTwits is: Dividend growth utility. This stock has done well for me over the longer term. Its heavy debt load gives it some vulnerability especially during any bad time. Price seems to be reasonable at the current time. See my spreadsheet on Fortis Inc.

I own this stock of Fortis Inc. (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.

What I noticed when doing the spreadsheet was the increase in shares of 42% for 2016. Most of this was a public offering to purchase ITC Holdings Corp. Fortis debt has also increased dramatically by some 88%. The Debt/Market Cap Ratio is now over 1.00 at 1.27. Their debt ratios have never been great and they are very low at present.

The current Liquidity Ratio is just 0.55. That means that the current assets cannot cover their currently liabilities. Even adding in cash flow after dividends this ratio just becomes 0.87. You can add in the current portion of the debt and still the ratio is just 0.93. This leaves the company vulnerable, especially if there are any problems. On the other hand, most analysts think that it will do just fine.

I have had this stock for some 29 years. I have made a return of 13.02% per year from it. Of my return 8.06% is from capital gains and 4.96% is from dividends. I first bought this stock in1987 and then more in 1995 and 1995. I sold some in 2005. It is some 4.8% of my portfolio.

The 5 year low, median and high median Price/Earnings per Share are 19.15, 20.09 and 20.76. The 10 year values are 16.97, 18.61 and 20.50. The historical values are 13.49, 15.68 and 17.79. It would appear that some of the recent run up in price is due to increasing P/E Ratios. I think that the recent values are rather high for a utility stock. The current P/E Ratio is 17.91. This is based on a stock price of $44.23 and 2017 EPS estimate of 2.47. This stock price testing suggests that the current stock price is relatively reasonable. This is my least favourite method to determine how good a stock price is.

I get a Graham Price of $42.38. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.12 and 1.22. The current P/GP Ratio is 1.04 based on a stock price of $44.23. This stock price testing suggests that the current stock price is relatively reasonable and below the median.

The 10 year Price/Book Value per Share Ratio is 1.43. The current P/B Ratio is 1.37 based on BVPS of $32.31 and a stock price of $44.23. The current P/B Ratio is some 4% lower than the 10 year ratio. This stock price testing suggests that the current stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.60%. The current dividend yield is 3.62% based on dividends of $1.60 and a current stock price of $44.23. The current dividend yield is just below the historical dividend yield. This stock price testing suggests that the current stock price is relatively reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most are Buy recommendations and the consensus is a Buy recommendation. The 12 month stock price consensus is $48.83. This implies a total return of 14.025 with 10.40% from capital gains and 3.62% from dividends.

Yadullah Hussain on Financial Post talks about what the purchase of ITC Holdings Corp means for Fortis. Doug Wharley on The Cerbat Gem talks about Scotiabank raised their target price from $48 to $49 for this stock. See what analysts are saying about this stock on Stock Chase

Fortis Inc.is a diversified infrastructure holding company, primarily comprising gas distribution and electric utilities in Canada, the U.S., Turks and Caicos, and the Cayman Islands. Fortis also has interests in electricity generation ventures in Canada and the U.S. Its web site is here Fortis Inc.

The last stock I wrote about was about was SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more . The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Wednesday, April 26, 2017 around 5 pm. Tomorrow on my other blog I will write about the current Pension Crisis... learn more on Tuesday, April 25, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Friday, April 21, 2017

SNC-Lavalin Group Inc.

Sound bite for Twitter and StockTwits is: Cheap for reasons. Generally when a stock is cheap when the rest of the market is not there are reasons for that. Business has been slow and it does have some vulnerabilities. Most analysts seem to see a brighter future for this company. See my spreadsheet on SNC-Lavalin Group Inc.

I own this stock of SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF). This stock was one from Mike Higgs' list of dividend growth stocks. I liked the idea of low dividends and high dividend increases. When you are building up a portfolio, low dividends are good for tax reasons. High dividend increases are attractive for the future. I bought this stock in 1989 and then sold off some in 2008 because it is a higher risk stock and it grew too big in my portfolio.

This stock has done well for me. I have had it for 18 years and my total return is 25.11% per year with 22.51% from capital gains and 2.60% per year from dividends. The dividend payments have covered 169% of the cost of my stock purchase. For this stock I bought 18 years ago, I am making a dividend yield of 32.12% and my dividends have grown by 17% per year. I have done so well because I bought this stock when the stock's market cap was $455M. The current market cap is 8B.

This stock used to have low dividends and good dividend growth. However, the dividend growth has been hovering just over 4% since 2012. Currently the dividends are moderate and the dividend growth is low. The current dividend is rather high for this stock at 2.02% based on dividends of $1.09 and a stock price of $53.97. The 5 and 10 year dividend growth is at 4.36% and 13.24% per year. The last dividend increases was in 2017 and it was for 5%.

Let's face it. This company has had problems recently. EPS peaked in 2010 and the dividend growth slowed in 2011. It was in 2011 when the corruption scandals of this company concerning Libya hit and news on this was in the newspapers from then to 2016. There were also some scandals in Quebec. It all seems to have now simmered down. However, this company is in construction and engineering business and volatility should be expected.

The stock has not performed well lately. The 5 year total return is just 4.28% with 2.50% from capital gains and 1.79% from dividends. The 10 year total return is better but not that great for this stock at 8.08% with 6.27% from capital gains and 1.81% from dividends.

The stock's Liquidity Ratio is not great. The one from 2016 is just 1.06. I prefer this to be closer to 1.50 or higher. Adding in cash flow after dividends does not help in this case as it just lowers the ratio to 1.04. This means that the company could be vulnerable in bad times. In the last two years the EPS/CF Ratio is above 1.00. This means that EPS is lower than CFPS. This is also not a great situation.

I get 5 year low, median and high median Price/Earnings per Share Ratios of 17.16, 22.18 and 27.21. The corresponding 10 year values are 15.35, 20.77 and 26.07. The corresponding historical ones are 14.05, 19.05 and 24.93. The stock price has been going up in part because the P/E Ratios have been going up. The current P/E Ratio is 18.55 based on a stock price of $53.97 and 2017 EPS estimate of $2.91. It would seem that the current P/E Ratios is reasonable and below the median.

I get a Graham Price of $41.07. The 10 year low, median and high median Price/Graham Price Ratios are 1.45, 1.84 and 2.28. The current P/GP Ratio is 1.31 based on a stock price of $53.97. This stock price testing suggests that the stock price is relatively cheap. However, on an absolute basis a P/GP Ratio only shows the stock as cheap if the P/GP Ratio is 1.00 or lower. On the other hand a ratio of 1.31 is not a high ratio.

I get a 10 year Price/Book Value per Share Ratio of 3.72. The current P/B Ratio is 2.10 based on a stock price of $53.97 and BVPS of $25.76. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.46%. The current dividend yield is 2.02% based on dividends of $1.09 and a stock price of $53.97. The current dividend yield is some 39% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations with most being a Buy. The consensus recommendation would be a Buy. The 12 month stock price consensus is $63.13. This implies a total return of 19% with 16.97% from capital gains and 2.02% from dividends based a current price of $53.97.

Jesse Snyder on Financial Post talks about SNC's acquisition of WS Atkins PLC. Karen Thomas of Motley Fool says that SNC is not cheap and has corruption charges still hanging over its head. BVN Staff writes looks at some technical in the BVN Journal. They basically say that SNC is neither oversold nor over brought. See what analysts are saying about this stock on Stock Chase. They rather like SNC going forward.

SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA.. Its web site is here SNC-Lavalin Group Inc.

The last stock I wrote about was about was Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more . The next stock I will write about will be Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more on Monday, April 24, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Wednesday, April 19, 2017

Veresen Inc.

Sound bite for Twitter and StockTwits is: Buy for good yield. This stock is not cheap, but it still have a very good yield of 6.54%. The dividend seems to be safe. See my spreadsheet on Veresen Inc.

I own this stock of Veresen Inc. (TSX-VSN, OTC-FCGYF). I bought this stock in 2008 as Fort Chicago Energy Partnership. At that time it was a publicly traded limited partnership with increasing and high dividends. In 2010 the company changed to a corporation.

What has happened to the dividends is that they have stayed level since 2008. They cannot afford the dividends according to the Dividend Payout Ratios for EPS or Adjusted EPS. The EPS is negative for 2016 so this will not cover the dividend. The DPR for Adjusted EPS is 526%. Analysts expect both the DPR for EPS or for Adjusted EPS to be closer to 100% by 2019.

Analysts are still looking at the Distributable Cash to calculated DPR. In 2016 the DPR for DC is 87%. The 5 year median is 90%. Analysts expect the DPR for DC to be around 91% in 2017. The company says that they can and are funding the dividends from their Take-or-Pay/ Fixed fee structure. So they see no problem funding the dividends. No word on any increase though.

I have done very well with this stock as I bought it cheap in 2008 and 2009. My ACB is just $7.08. My total return is 21.37% per year with 9.38% from capital gains and 11.99% from dividends. The return on this stock has been mostly in dividends. To date, the dividends I have received have paid for 115% of the cost of my stock over the 8 years I have owned this stock. I would image that the heavy return in dividends compared to capital gains will continue.

The 5 year low, median and high median Price/Earnings per Share Ratios are 42.93, 65.26 and 78.10. The 10 year values are not better at 30.51, 35.86 and 41.20. These are due to the low recent EPS. The historical values are 17.36, 20.83 and 24.72. These are more in line with a utility stock, but still rather high. The current P/E Ratio is 36.40 based on a stock price of $15.29 and EPS estimate for 2017 of $0.42. One has to wonder how good the P/E Ratio is for testing stock price for this stock.

The Price/Distributable Cash Ratio might be better. The 5 year low median and high median P/DC Ratios are 10.17, 12.40 and 14.33. The corresponding 10 year values are 7.85, 10.23 and 12.18. The current P/DC Ratio is 14.70 based on a stock price of $15.29 and 2017 Distributable Cash estimate of $1.04. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $13.09. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.02 and 1.24. The current P/GP Ratio is 1.17 based on a stock price of $15.29. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.00. The current P/B Ratio is 2.09 a values some 4.4% higher than the 10 year median P/B Ratio. The P/B Ratio is based on BVPS of $7.32 and a stock price of $15.29. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The dividend yield test is not especially a good one for old Income Trust stocks. Part of the reason is that the dividend yields probably would never reach the height they reached with the stock was an income trust. Another word of caution for this stock is that the dividends have been flat. This is a better test for increasing dividend stocks. However, you should be able to use the 5 year median dividend yield. In this case the 5 year median dividend yield is 7.40% (which really is not that far off the historical median dividend yield of 7.95%). The current dividend yield of 6.54% is based on dividends of $1.00 and a stock price of $15.29. The current dividend is some 11.6% lower than the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median P/S Ratio is 4.45. The current P/S Ratio is 13.01 based on Revenue estimate of $368.6M for 2017 or $1.18 per share. The current P/S Ratio is some 192% higher than the 10 year median ratio. This stock price testing suggests that the stock is relatively expensive.

When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price consensus is $15.46. This implies a total return of 7.65% with 1.11% from capital gains and 6.54% from dividends.

David Glaser on Sports Perspectives talks about this company getting an average recommendation of Buys. A TCT contributor on Twin City Telegraph does some technical analysis of this stock. It seems to be neither good nor bad. See what analysts think of this stock on Stock Chase. They mostly like it and feel it has a good future.

Veresen is a leading diversified energy infrastructure company that owns and operates energy infrastructure assets across North America. They are engaged in three principal business lines of Pipelines, Midstream and Power (gas-fired and renewable facilities). Its web site is here Veresen Inc.

The last stock I wrote about was about was Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)... learn more . The next stock I will write about will be SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more on Friday, April 21, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes 2... learn more on Thursday, April 20, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Tuesday, April 18, 2017

Canadian Natural Resources

Sound bite for Twitter and StockTwits is: Buy for diversification. Depending on what tests you do the stock is either expensive or cheap. I do prefer the dividend yield test because we are using current values and no estimates. However when all other tests show the stock is expensive, it would be prudent to be cautious. This is especially true because the P/B Ratio testing suggests an expensive price. See my spreadsheet on Canadian Natural Resources.

I own this stock of Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). I started to follow this stock in 2008 because it was on the dividend growth lists that I followed. I first bought CNQ in September 2012 because the dividend yield was relatively high. The 5 and 10 year median dividend yields were 0.73% and 0.75%. The current one was at 1.32%. In April 2013 I bought more shares of this stock because the yield was then at 1.54%.

They have been increasing the dividends faster than the stock price has been going up. So the current dividend yield is higher than when I bought it. The current dividend yield at 2.48% is based on dividends of $1.10 and a stock price of $44.35. For the stock I bought in 2012, I am earning 3.46% on my original purchase price.

The dividend increases are good. The dividends have grown by 21.7% and 20.5% per year over the past 5 and 10 years. Since starting dividends in 2001 they increase the dividends every year expect in 2016. In 2016 they had a second year of EPS loss. Analysts expect improvements in EPS and a positive EPS this year.

The Dividend Payout Ratios for EPS has been low. The 5 year median is just 23%. The DPR for 2017 is expected to be around 72% and for 2018 to be lower still. The last dividend increase was in 2017 and it was for 10%. This is the second increase for 2017 after an earlier one for 8.7%. The dividends received in 2017 are some 16.85% above the ones for 2016.

Recently the price of oil and gas has been down so it is not surprising that this company has not been growing its earnings, revenue or cash flow. In spite of that I have done well with this stock. I have had it for 4.5 years and the total return is 9.89% per year with 7.35% per year from capital gains and 2.54% per year from dividends

One thing I do not like is that the Liquidity Ratio is low at just 0.85. Unfortunately, it is always been low. For a company reflecting the volatility of oil and gas resources I would prefer to see this at a stronger number. My preferred number is 1.50. However, if you add in cash flow after dividend it is 1.33. If you add back in the current portion of the long term debt and cash flow after dividends it is 2.06. A low Liquidity Ratio can make a company vulnerable in bad times. The other debt ratios are fine.

The 5 year low, median and high median Price/Earnings per Share Ratios are 8.90, 11.32 and 13.74. The corresponding 10 year values are 11.46, 14.55 and 16.76. The historical ones are 10.88, 15.34 and 17.23. Because there was two recent years of EPS losses, we should pay more attention to the 10 year and historical P/E Ratios. The current P/E Ratio is 29.77 based on a stock price of $44.35 and 2017 EPS estimate of $1.49. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $28.15. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.17 and 1.47. The current P/GP Ratio is 1.58 based on a stock price of $44.35. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 1.57. The current P/B Ratio is 1.88 a values some 19.6% higher. The current P/B Ratio is based on a stock price of $44.35 and BVPS of $23.64. This stock price testing suggests that the stock price is relatively reasonable but above the median. If the difference had been 20%, it would suggest that the stock price is relatively expensive. So it is close to being relatively expensive by this measure.

The dividend yield test tells a different story. The historical dividend yield is 0.87. The current dividend yield at 2.48% is some 185% above the historical yield. This stock price testing suggests that the stock price is relatively cheap. Note that the 5 and 10 year median yields are higher at 2.16% and 1.05% or the current yield is some 14% and 136% higher than the 5 and 10 year median yields.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price consensus is $51.96. This implies a total return of 19.645 with 2.48% from dividends and 17.16% from capital gains.

Matt Smith of Motley Fool likes this stock. Mary Jones at Baxter Review gives some technical analysis on this stock. She says that the Williams Percent Range is at negative 39.32. A value between 0 and negative 20 says a stock is overbought and between negative 80 and negative 100 is oversold. So she is saying that this stock is neither overbought nor undersold, but is closer to overbought. The Term overbought means that a stock price is high. Heather Davidson on USA Commerce Daily says analysts are recommending this stock. (Note that values given are in US$.) See what analysts are saying about this stock on Stock Chase.

Canadian Natural Resources Ltd. is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is here Canadian Natural Resources.

The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more . The next stock I will write about will Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more on Wednesday, April 19, 2017 around 5 pm. Today on my other blog I will write about TD Bank Problems... learn more around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Thursday, April 13, 2017

Barclays PLC ADR

Sound bite for Twitter and StockTwits is: Buy for diversification. I bought this to diversity internationally. It is the only international stocks I own however, some of my Canadian stocks do business internationally. If the P/B Ratio stock price test is used the stock price is relatively reasonable and below the median. See my spreadsheet on Barclays PLC ADR.

I own this stock of Barclays PLC ADR (LSE-BARC, NYSE-BCS). I bought this stock when Barrett took over in 2000. Barrett used to run Bank of Montreal in Canada. At that time it was a good dividend paying stock and I thought it would give me some geographical diversifications. It has not performed well lately but a lot of banks, especially ones outstand Canada have not performed very well since 2008.

This bank has just finishing up its restructuring that they expect will make the bank better and a better investment for the future. Jes Staley the CEO of Barclays talks about the restructuring.

This is a UK bank that reports in UK pounds and pays dividends in UK pounds. I bought it off the NYSE in US$ as an American Depositary Receipt (ADR) stock. The information on this stock is reported in US$ in my US account. This bank does its reporting in UK£. It is rather complicated to follow as my spreadsheets has to deal with three currencies, US$, CDN$ and UK£.

Dividends are paid differently for non-Canadian (or non-US) companies. We are used to four equal dividend payments although there are companies that pay semi-annually. With Barclays they always paid a big dividend at the beginning of the year based on how good the results were for the prior year and then a smaller dividend near the end of the year. In 2010 they switched to quarterly dividends however the first dividend payment was always bigger than the other 3. In 2016 they switched back to semi-annual dividends with the first one bigger than the one at the end of the year.

Also, this bank got into difficulties in 2008 and dividends were cut 97% in 2009. Dividends were increased in 2010 some 350%, but they were still some 86% lower than where they had been in 2008. The dividends were still some 80% in 2015. In 2016 they decreased the dividends again and this time by 54%.

The bank expects that as earnings pick up, so will the distribution of dividends. Analysts also expect dividends to increase. They do not expect much for 2017, but expect higher dividends for 2018 and beyond. In 2016 analysts expected earnings of £0.089 but got earnings of £0.103. So the bank did better than they expected. It would seem that dividend decreases are now over.

The 5 year low, median and high median Price/Earnings per Share Ratio (US$) are negative and are of no use. The corresponding 10 year values are 3.96, 7.69 and 10.52. These are also affected by recent negative earning years and are too low for a bank. The historical ones are 8.38, 10.05 and 12.87. The current P/E Ratio is 15.68 based on a stock price of $10.65 and 2017 EPS estimate of $0.68. This stock price testing suggests that the stock price is relatively expensive. Note that doing this testing using UK£ I will get similar but not exact results. This would be due to exchange rate fluctuations. Often the P/E Ratio test is not the best one to use to judge the stock price.

The 10 year median Price/Book Value per Share Ratio is 0.75 (US$). The current P/B Ratio is 0.63 a values some 16% lower. The current P/B Ratio is based on BVPS of $17.00 US$ and a stock price of $10.65 US$. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $16.12 US$. The 10 year low, median and high median Price/Graham Price Ratios are .050, 0.64 and 0.79 in US$. The current P/GP Ratio is 0.66 based on a stock price of $10.65. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Because of the fluctuations in dividends that is they have been up and down a lot lately, doing a dividend yield test would not be a very good one. However, the historical median dividend yield is 3.41%. The current dividend yield is just 1.40% which is lower by 59%. Certainly the current dividend yield is way off the historical median.

The 10 year median P/S Ratio is 1.34 US$. The current P/S Ratio is 1.64 US$ based on 2017 Revenue estimates of $27,493M or $6.48 US$ per share. The current P/S Ratio is some 23% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

I have used a number of methods to try to see if the stock price is reasonable or not. Most of the tests are telling different stories. However, if you have to pick which ones to use I like the P/GP Ratio and P/B Ratio tests the best. The good thing about the P/B Ratio test is that you are not using any estimates.

When I look at analysts' recommendations I find Strong Buy, Buy, Hold, Underperform and Sell. In other words they are all over the place. Most of the recommendations are either a Buy or Hold recommendation. The consensus recommendations would be a Hold. The 12 months stock price consensus is £2.39. This implies a total return of 13.08% with 1.40% from dividends and 11.68% from capital gains. Since this is in UK pounds, what is made in US$ on the NYSE could vary because of changes in the exchange rate.

Amilia Stone on Directors Talk Interviews talks about HSBC reiterating their Buy recommendation on this stock. Colin Frost on Top Chronicle feels that Barclays shares are currently overvalued. That is that the price is too high. On a more troubling note Ben Martin in the Telegraph talks about Barclays Bank CEO Jes Staley attempts to learn the identity of a whistleblower. The board of Barclays still has faith in Staley as do other shareholders and analysts. Rupert Hargreaves of Motley Fool UK is rather negative about this stock.

One of the largest financial services groups in the United Kingdom, Barclays is engaged in banking, investment banking and asset management worldwide. Its web site is here Barclays PLC ADR.

The last stock I wrote about was about was Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more . The next stock I will write about will be Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)... learn more on Tuesday, April 18, 2017 around 5 pm. Today on my other blog I will write about Dividend Changes... learn more on Thursday, April 13, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Wednesday, April 12, 2017

Pembina Pipelines Corp

Sound bite for Twitter and StockTwits is: Dividend growth utility. Price is relatively reasonable but above the median to relatively expensive. See my spreadsheet on Pembina Pipelines Corp.

I own this stock of Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA). In December 2001 I thought it would be a good time to purchase this stock as the market was relatively low. Pipeline stocks are conservative and the return on this one was good at 9.7%. When I purchased this stock it was an Income Trust company.

One thing you need to watch on this stock is that the shares have increased lots over the past 5 and 10 years. This is nothing bad in itself, but if you are looking for how this stock has grown you really need to look at per share values. The Shares have grown at 18.8% and 12.1% per year or have grown by 136% and 215% over the past 5 and 10 years.

This does make a difference. Let's take a look at revenue. Revenue has grown at 20.5% and 28.9% per year over the past 5 and 10 years. However, Revenue per Share has grown at 1.5% and 15% per share over the same time period. The real growth in revenue is the per share growth.

One thing that annoyed me when updating my spreadsheet is that the company's report reduces values to millions. Even the number of shares is reduced to millions. Look at the stock based options. The report has them at 1 million for 2016. Since this is a rounded number the value could be anywhere from $20.9M (.5M shares) to say 58.7M (1.4M shares). This is a difference of $38M and no small sum. If I took them to two decimal points the variation could be to $62.52M (1.49M shares) or some $42M.

After changing from an Income Trust it kept its dividends flat for two years and then began to raise them again. The current dividend yield is 4.67%. This is a good dividend yield. The 5 year median dividend yield is also good at 5%. The dividend yield has always been good. However, it will never go back the yield of when it was an Income Trust.

The dividend growth is low. The growth in dividends over the past 5 and 10 years is 3.5% and 5.7% per year. Due to the high yield this stock started with and the dividend increases, the dividends I have received have cover my initial stock cost by 184%. I have also made a total return of 16.98% per year with 7.53% from dividends and 9.45% from capital gains. Going forward the portion of the total return in dividends will be lower.

One problem I see is the Dividend Payout Ratio for EPS. The DPR for EPS for 2016 is 187 % and the 5 year one is 170%. These are much too high. However, most analysts are still looking at DPR for AFFO rather than EPS. The 2016 DPR for AFFO is 74% with a 5 year value of 74%. They also think that EPS will grow sufficiently over the next two years so that the DPR for EPS will be below 100%.

I already touched on my other concern which is the lack Revenue per Share growth. I must admit here as well that analysts' feel that Revenue and Revenue per Share will growth well over the next couple of years.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The vast majority are Buy recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $48.47. This implies a total return of 15.69% with 11.02% from capital gains and 4.67% from dividends.

The 5 year low, median and high median Price/Earnings per Share Ratios are 27.89, 34.56 and 42.20. The corresponding 10 year values are 23.47, 27.90 and 32.33. The historical values are 20.04, 23.50 and 26.36. I find these all too high for a utility stock. The current P/E Ratio is 25.99 based on a stock price of $43.66 and 2017 EPS estimate of $1.68. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $28.11. The 10 year low, median and high median Price/Graham Price Ratios are 1.37, 1.61 and 1.83. Here again I find the ratios high. The current P/GP Ratio is 1.35 based on a stock price of $43.66. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year Price/Book Value per Share of $1.87. The current P/B Ratio is 2.09 a values some 12% higher. The current P/B Ratio is based on a BVPS of $20.90 and a stock price of $43.66. This stock price testing suggests that the stock price is relatively reasonable, but above the median. Here I find the P/B Ratio to be at a reasonable level.

I get 5 year low, median and high Price/Adjusted Funds from Operations Ratios of 12.21, 14.16 and 16.78. The corresponding 8 year ratios are 11.58, 14.13 and 16.42. The current P/AFFO Ratio is 17.19 based on a stock price of $43.99 and 2017 AFFO estimate of $2.80. This stock price testing suggests that the stock price is relatively expensive.

Because this used to be an income trust stock, I can only test the current dividend yield against the 5 year dividend yield. The 5 year median dividend yield is 5%. The current dividend yield is 4.67% a value some 6.6% lower. This stock price testing suggests that the stock price is relatively reasonable but above the median.

In this dividend announcement from Pembina on News Wire the company talks about their recent dividend increase and new pipeline expansion projects. Geoffrey Morgan at the Financial Post talks about building a propane export terminal in Prince Rupert, B.C. The staff at Market Exclusive talks about Raymond James Financial Inc. reiterating its Outperform rating on Pembina Pipeline Corp. See what analysts are saying about this company at Stock Chase. They are mostly positive.

Pembina Pipeline Corp owns energy infrastructure assets in North America. It operates conventional oil, NGL, and oil sands pipeline systems, a natural gas gathering and processing business, NGL extraction and fractionation facilities, and a marketing business. Its web site is here Pembina Pipelines Corp.

The last stock I wrote about was about was Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more . The next stock I will write about will be Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more on Thursday, April 13, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes... learn more on Thursday, April 13, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Monday, April 10, 2017

Barrick Gold Corp

Sound bite for Twitter and StockTwits is: Resource and high risk. The stock has had a good run since I bought it. I wonder if I should hold it longer or sell. A positive is that there was insider buying at a rate of 0.02% over the past year. Buying was recent and close to the current price. See my spreadsheet on Barrick Gold Corp.

I own this stock of Barrick Gold Corp (TSX-ABX, NYSE-ABX). This is a big gold mining company that I have followed for years. It was on some dividend growth lists at different times and covered by the Investment Reporter. I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I just bought 100 shares as I am living off my portfolio and do not have much to invest. I bought another 100 shares in 2016.

I must admit I am just fooling around with this stock. I am not big into investing in resource stocks, but this had taken it on the chin so it looked like a good one for my fooling around money. The problem with how I actually make money on the stock market is that it is boring. That is why I have fooling around money. Bets are small so they cannot harm my portfolio. So I can have some fun without causing me any problems. How did I do? I have made a total return of 19.21% per year on this stock. Basically I have made a couple of thousand dollars and I have some fun.

Money can be made on resource stocks if you buy them when they are down and sell them when they are up. I would never consider any resource stock as a long time buy and hold stock. It is not just that they are volatile, they seem almost cyclical. In any event that is how I feel about them.

Because there have been a number of negative earnings years lately, the 5 and 10 year low, median and high median Price/Earnings per Share Ratios are not useable. The historical ones are 14.52, 22.29 and 27.83. These are rather high ratios. The current P/E Ratio is 29.00 based on a stock price of $25.64 and 2017 EPS estimate of $0.88 CDN$ ($0.66 US$). This stock price testing suggests that the stock price is relatively expensive. It is at a lower price that it has been most of time from 1993 to 2013. The stock has been lower than the current price since 2013.

I get a Graham Price of $13.49. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 1.28 and 1.62. The current P/GP Ratio is 1.90 based on a stock price of $25.64. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 2.02. The current P/B Ratio is 2.80 based on BVPS of $9.14 and a stock price of $25.64. The current ratio is some 39% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

The historical median dividend yield is 0.98%. The current dividend yield is 0.63% based on dividends of $0.16 and a stock price of $25.64. The current yield is some 36% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but Buy is a close second. The consensus recommendation would be a Buy. The 12 month stock price is $21.34 US$ or $28.59 CDN$. This implies a total return of 12.13% with 0.63% from dividends and 11.50% from capital gains.

Neha Chamaria of Motley Fool compares Royal Gold (NASDAQ:RGLD) and Barrick Gold Corp in this article. He says that Royal Gold is safe, but Barrick Gold Corp is cheap. The Canadian Press published a story on CTV News about Barrick Gold Corp selling a 50 per cent stake in its Veladero mine in Argentina to Chinese mining company Shangdong Gold Group. Analysts make remarks about this company on Stock Chase.

Barrick Gold Corporation is a gold mining company with a portfolio of operating mines, and advanced exploration and development projects located across five continents. Its web site is here Barrick Gold Corp.

The last stock I wrote about was about was Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more . The next stock I will write about will be Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more on Wednesday, April 12, 2017 around 5 pm. Tomorrow on my other blog I will write about Stocks Suggestions... learn more on April 11, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Friday, April 7, 2017

Leon's Furniture Ltd

Sound bite for Twitter and StockTwits is: Dividend growth Consumer stock. This stock is current at a rather attractive price. The Leon family control this company and not everyone is fond of such companies. I do not mind if they are well run. See my spreadsheet on 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 dividend growth stock has not been a big winner. I have made a total return of 7.19% per year with 2.92% from dividends and 4.27% from capital gain. The dividends paid of $3.37 per share have paid 28.8% of the cost of my stock. I have had this stock for just less than 11 years. It should also be noted that this current long slow recovery has not be good for a number of stocks.

The dividend yield is low to moderate. The current dividend yield is moderate at 2.8% based on dividends of $0.48 and a stock price of $16.98. The historical median dividend yield is low at 1.9%. The 5 and 10 year median dividend yields are moderate at 2.5% and 2.6% respectively.

The dividend growth is low with growth at 2.1% and 4.8% per year over the past 5 and 10 years. I should point out that dividends were flat from 2012 to 2017. This year the dividends were increased by 20%. Dividend increases has always been inconsistent for this stock. After owning this stock for just less than11 years I am earning a good dividend of 4.3% on the stock I bought in 2006.

Dividend Payout Ratio has been moderate. The DPR for EPS for 2016 was 37% with a 5 year value of 47%. DPR in 2012 reached unusually high for this stock at 85%. Generally speaking DPR for EPS was previous in the 20% and 30% ranges. The DPR for 2017 is expected to be around 38%.

For this stock the Debt/Market Cap Ratio is 0.25. This ratio is a good one. The Debt Ratio at 1.69 is also a good ratio. The Liquidity Ratio is low at 1.28 and a 5 year median of 1.15. I prefer this to be 1.50 or higher. However, if you add in cash flow after dividends it is an acceptable 1.60. The Leverage and Debt/Equity Ratios are not great, but not unusual for a Consumer Discretionary stock.

The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 16.40 and 18.65. The corresponding 10 year values are 13.43, 15.79 and 17.89. The corresponding historical ones are 12.37, 14.68 and 16.90. The current P/E Ratio is 14.03 based on a stock price of $16.98 and 2017 EPS estimate of $1.21. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $15.72. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.19 and 1.38. The current P/GP Ratio is 1.08 based on a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.03. The current P/B Ratio is 1.87 based on BVPS of $9.08 and a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical dividend yield of 1.91%. The current dividend yield is 2.83% based on dividends of $0.48 and a stock price of $16.98. The current dividend yield is some 48% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap. It is still below the historical high of 3.50%.

There seems to be only one analyst following this stock and the recommendation given is a Hold. The 12 months stock price given is $19.00. This implies a total return of 14.72% with 11.9% from capital gains and 2.83% from dividends.

This site of Sherwood Daily is looking at more technical valuations. One is the Piotroski F-Score. They give this stock a 7 where a score of 8 or 9 is vied as a strong stock and a score of 0-2 would be viewed as a weak stock. Ashwin Virk at Simply Wall Street looks at the company's balance sheet and debt and questions its debt load. I think that while the debt ratios are not the best, they are also not a present concern. A recent article in Buckeye Business Review looks at Leon's Gross Margins and other factors. They give it a Gross Margin score of 7 where 1 is good and 100 is considered bad. There is not much in the way of comments on this stock at Stock Chase. However, the comments made are generally positive.

Leon's Furniture Limited is a Canada-based company and is a retailer of home furnishings, electronics and appliances across Canada from Alberta to Newfoundland and Labrador. Leon's sells under several banners including Leon's, The Brick, Appliance Canada and United Furniture Warehouse. Its web site is here Leon's Furniture Ltd .

The last stock I wrote about was about was Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more . The next stock I will write about will Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more on Monday, April 10, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.

Wednesday, April 5, 2017

Russel Metals Inc.

Sound bite for Twitter and StockTwits is: Dividend paying industrial. Since I have not done that well with this stock, I was hoping that the current stock price would be cheap. However, it is currently testing at just reasonable. However, if you consider the cash on hand in the stock price, the current price might be considered cheap. The current recovery has not been very kind to a lot of companies. See my spreadsheet on Russel Metals Inc.

I own this stock of Russel Metals Inc. (TSX-RUS, OTC-RUSMF). This was a stock on Mike Higgs' Canadian Dividend Growth List. In 2007 I needed to reduce my holdings of Loblaws and buy something to help replace the dividends I had been earning. With Russel Metals, both Mike and TD recommend buying at this time. However I should keep a watch on this stock as it has had some troubles in the past.

This stock has been a poor performer for me. I have had it for almost 10 years. It has a total return of 5.42% per year with 5.33% from dividends and 0.09% from capital gains. I have an average price of $25.84 per share and the stock is currently worth $26.02. Dividends have been quite good. I have received $10.76 of dividends per share and so dividends have covered some 41.6% of my stock's cost.

This used to be a dividend growth stocks. However dividends have not grown since.2015. This is probably because the Dividend Payout Ratio in 2016 was 150% with a 5 year value of 159%. Analysts feel that the dividends will be covered by EPS in 2017 and then the DPR for EPS will move to around 85% in 2018.

This company is an industrial stock and industrial stocks tend to be volatile. The good thing is the good debt ratios. If you are in a volatile industry having good debt ratios are a must. Debt/Market Cap Ratio is just 0.19. The Liquidity Ratio is 3.31 and the Debt Ratio is 2.21 for 2016. These last two ratios should be at 150 or above so at their levels they are good. Leverage and Debt/Equity Ratios for 2016 are also good at 1.83 and 0.83.

The 5 year low, median and high median Price/Earnings per Share Ratios are 13.80, 16.09 and 19.21. The 10 year corresponding values are 12.95, 15.90 and 18.41. The historical values are 8.22, 9.69 and 11.17. The historical values are a lot lower than more recent values. The current P/E Ratio is 17.23 based on a stock price of $26.02 and EPS estimate for 2017 of $1.51. This stock price testing suggests that the stock price is relatively reasonable but above the median to relatively expensive.

I get a Graham Price of $21.31. The 10 year low, median and high median Price/Earnings per Share Ratios are 0.89, 1.13 and 1.38. The current P/GP Ratio is 1.22 based on a stock price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year Price/Book Value per Share Ratio of 1.83. The current P/B Ratio is 1.95 a value some 6.6% higher. The current P/B Ratio is based on BVPS of $13.37 and a Stock Price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The historical median dividend yield is 4.87%. The current dividend yield is 5.84% based on dividends of $1.52 and a stock price of $26.02. The current dividend yield is some 19.95% above the historical median dividend yield. This stock price testing suggests that the stock price is reasonable and below the median. If the current dividend yield has been 20% above the historical median dividend yield the test would show that the stock price was relatively cheap.

One thing to mention is the amount of cash this company currently has. It has $2.94 per share which is 11.3% of the current stock price. That would basically make the true cost of the stock at $23.08. It would give the stock a current P/E of 15.28 It would give the stock a current P/GP Ratio of 1.08. It would make the current P/B Ratio be 1.73. All these changes would move the stock price to a relatively reasonable and below the median position. It would move the dividend yield to 6.59% and put this stock price testing to relatively cheap with a dividend yield some 35% below the historical median dividend yield.

When I look at analysts' recommendations, I find Buy and Hold recommendations. Most are Buy recommendations and the consensus recommendation is a Buy. The 12 month stock price consensus is $28.95. This implies a total return of 17.10% with 11.26% from capital gains and 5.84% from dividends.

Amy Steele on The Cerbat Gem says that TD Bank reiterated its Hold rating for this stock. This company has a Press Release News Wire about their 2016 results. See what analysts are saying about this stock on Stock Chase. Most remarks are positive.

Russel Metals Inc. is one of the largest metals distribution and processing companies in North America. The Company primarily distributes steel products and conducts its distribution business in three principal business segments: metals service centers; energy tubular products and steel distributors. Its web site is here Russel Metals Inc.

The last stock I wrote about was about was Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more . The next stock I will write about will be Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more on Friday, April 7, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy April 2017... learn more on Thursday, April 6, 2017 around 5 pm.

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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.