Friday, October 20, 2017

Trigon Metals Inc.

Sound bite for Twitter and StockTwits is: Penny Mining Stock. I am following this for fun. I have not recommendation. See my spreadsheet on Trigon Metals Inc .

I own this stock of Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) which is now Trigon Metals Inc. (TSX-TM, OTC-PNTZF). I am following this stock because I own it. I am following it because I am interested in how it all will turn out.

The first thing to notice is shares have increased at an astounding rate. Over the past 5 and 10 years outstanding shares have increase by 45 and 31% per year or in total 4075% and 2585%. In 2017 outstanding shares grew by 25% and have g5rowth by almost 9% so far this year. The stock has been consolidated twice.

I bought this stock as Tathacus Resources Ltd (TSX-TTC). In 2011 there was a reverse takeover and company was Pan Terra Industries Inc. May 2, 2012 the name was changed from Pan Terra Industries (TSX-PNT) to Kombat Copper Inc. (TSX-KBT). On December 22, 2016 the stock changed its name and from Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) to Trigon Metals Inc. (TSX-TM, OTC-PNTZF). The reason I have not sold is that the stock is worth so little. The current value of my shares is $2.10.

This company has not had any revenue since 2010. Most of the years they have had earning losses and all the previous 10 years there are earning losses. There is no positive cash flow. About the only good thing is that there is a positive book value.

Debt ratios have varied. It has mostly had reasonable Liquidity Ratios expect for 2009 when it was 0.22. It has to be at 1.00 for current assets to cover current liabilities. The Liquidity Ratio for the last financial year ending in March 2017 was 1.49. The Debt Ratios has also varied a lot, but the most recent annual statement it was 2.50. Leverage and Debt/Equity Ratios are also reasonable with the one for the last financial year at 1.66 and 0.66 respectively.

The only check to make on price is the Price/Book Value per Share Ratio. The 10 year median ratio is 3.24 and the current one is 18.10. The current one is some 458% higher than the 10 year ratio. However, both ratios are high. A ratio of 18.10 is extraordinarily high. The P/B Ratio of 18.10 is based on a Book Value of .449M, BVPS of $ 0.02 and a stock price of $0.41. This test would say that the stock price is relatively expensive; however this is a penny stock in mining.

There does not seem to be any analysts following this stock. This can hardly be a surprise. It is a penny stock in mining in Africa. So far it probably has not made any profit for investors. Whether it ever will is up for grabs.

Stephan Theron reports in Junior Mining Network that the company has received the environmental approvals required to commence exploration on the area targeted for open pit mining. Lockport Staff on Lockport Press gives some technical analysis of this company. From the new rooms at Market Wired we see that this company completed a non-brokered private placement financing of up to 3,333,333 units at a price of $0.30 per Unit for gross proceeds of up to $1,000,000.

Trigon Metals Inc. is engaged in acquisition, maintenance, exploration and development of mines and mineral properties in Namibia. Its web site is here Trigon Metals Inc .

The last stock I wrote about was about was Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more on Monday, October 23, 2017 around 5 pm. Today on my other blog I will write about Money Show 2017 - Ryan Irvine 2... learn more on Friday, October 20, 2017 around 5 pm

Also, on my book blog I have put a review of the book Maximum Canada by Doug Saunders learn more...

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, October 18, 2017

Logistec Corp

Sound bite for Twitter and StockTwits is: Dividend growth Industrial. On a relative basis the current stock price is expensive. This could be cured if EPS rises strongly again. The stock price has been in a $35 to $45 range since mid-2014. See my spreadsheet on Logistec Corp.

I do not own this stock of Logistec Corp (TSX- LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger's all-star spreadsheet for March 2017. I needed a new stock to follow as I have lost a number this year with stocks merging like Veresen Inc. with Pembina or like Canadian Oil Sands being bought by Suncor, and with stocks like Canam Group Inc. (TSX: CAM) going private.

One thing to mention is that I cannot find any analysts following this stock. This is good and bad. This stock has a market cap of less than 500M. It makes it a small cap. It is not in the TSX Composite Index. Small caps have room to grow and you can make money on them, especially around the time they do get noticed and do get into the TSX Composite Index.

First shares have been declining by 1.4% and .8% per year over the past 5 and 10 years. So per share growth looks better than it actually is. For example, Revenue has grown by 8.9% and 4.7% per year over the past 5 and 10 years but Revenue per Share has grown by 10.4% and 5.6% per year over the past 5 and 10 years.

The most important one of EPS has not grown was well as it might appear. Growth in Net Income is 1.4% and 5.9% per year over the past 5 and 10 years. What you compare this to is growth in Basic EPS (not diluted) where growth is 2.8% and 6.8% per year. By the way, growth in Diluted EPS is 1.9% and 6.4% per year over the past 5 and 10 years.

The other thing to mention about earnings is that the 5 year running growth is at 14.6 and 14.9% per year over the past 5 and 10 years. What this tells you is that the in the case of the 5 year running over the past 5 years that the last 5 years had overall better growth than 6 to 10 years ago. EPS has been depressed lately. EPS fell 4.9% and 36.9% in the last 2 years. Growth seems to be up in the first two quarters of 2017 with a 12 month EPS of $1.66 to the end of the second quarter. This is some 12% higher than last year.

This is a dividend growth company. They have not raised the dividends every year, but most years, especially in later years. Since 2005 they have only not increased their dividends in only one year and that was in 2009.

Dividends have been low to moderate and growth in dividends has been moderate. The current dividend yield is just 0.95%. The 5 year, 10 year and historical median yields are 0.85%, 1.62% and 2.10%. Dividend yields have been higher in the past than now. The dividend growth over the past 5 years is at 11.8% and 8.8% per year. The most recent increase was for 9.9% and it was in 2017.

This stock has two classes. The main one on the TSX is Class B. The two classes are Class A Common Shares with 30 votes per share, convertible into Class B Subordinate Voting Shares at the holder's discretion and Class B Subordinate Voting Shares, with one vote per share, entitling their holders to receive a dividend equal to 110% of any dividend declared on each Class A Common Share.

This stock has good debt ratios. The Liquidity Ratio for 2016 is 2.51 with a 5 year median of 2.25. The Debt Ratio for 2016 is 2.33 with a 5 year median of 2.67. The Leverage and Debt/Equity Ratios for 2016 are 1.77 and 0.76 with 5 year medians of 1.73 and 0.64 respectively. Good debt ratios are important for small companies, especially if earnings can be volatile.

The Return on Equity was below 10% once in the past 5 years and twice in the past 10 years. The year of 2016 was not good for this company with an ROE of 9.4%. The 5 year median ROE is 15.4%. The Comprehensive Income is close with a 2016 ROE of 9.1% and a 5 year median of 18.5%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.86, 13.23 and 16.60. The 10 year corresponding ratios are 7.08, 8.85 and 11.62. The Historical ones are 7.49, 10.15 and 12.16. Small caps often have low P/E Ratios. The current P/E Ratio is 22.19 based on a stock price of $39.06 and latest 12 month EPS of $1.66. This stock price testing suggests that the stock price is relatively expensive. While a P/E Ratio of 22 is high for a small cap, it is rather a median one for a large cap.

I get a Graham Price of $24.75. The 10 year low, median and high median Price/Graham Price Ratios are 0.58, 0.80 and 1.02. The current P/GP Ratio is 1.58 based on a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. A P/GP Ratio of 1.58 is high ratio for any stock.

The 10 year median Price/Book Value per Share Ratio is 1.46. The current P/B Ratio is 2.52 a value some 73% higher. The current ratio is based on Book Value of $199M, BVPS of $16.43 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. On an absolute basis, a P/E Ratio of 1.46 is a good one, but one of 2.52 is a high one.

The current dividend yield is 0.93%. The historical dividend yield is 2.10% a value some 56% higher. The current Dividend Yield is based on dividends of $0.36 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. I generally would not buy a stock with a dividend yield less than 1%.

The 10 year median Price/Sales (Revenue) Ratio is 0.65. The current P/S Ratio is 1.40 a value some 115% higher. The current P/S Ratio is based last 12 months Revenue of $360M, Revenue per Share of 29.68 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive.

There is a new release on Cision about this company acquiring a 51% of the shares of FER-PAL Construction Ltd. Patrick M. Pritchard on Seeking Alpha gives a review of this company. He also thinks that it is currently overpriced.

Logistec Corporation provides cargo handling and other services to a range of marine, industrial and municipal customers. The Company operates through two segments: marine services and environmental services.. Its web site is here Logistec Corp.

The last stock I wrote about was about was Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more. The next stock I will write about will be Trigon Metals Inc. (TSX-TM, OTC-PNTZF)... learn more on Friday, October 20, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine... learn more on Thursday, October 17, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, October 16, 2017

Teck Resources Ltd

Sound bite for Twitter and StockTwits is: Dividend paying material stock. I would think that this stock price is relative cheap at this point. However this stock has had a lot of ups and down in price and it may be more at a median price. It is a materials stock so it is risky. See my spreadsheet on Teck Resources Ltd.

I do not own this stock of Teck Resources Ltd. (TSX-TECK.B, NYSE-TECK). The time to buy this stock is when it cuts its dividend. For example, I bought this stock in 2008 and sold in 2009. I bought this stock because the company purchased Fording Canadian Coal Trust at exactly the wrong time and got into financial difficulties and the stock price dropped off a cliff as they had to cut dividends. When the stock recovered somewhat in 2009, I sold for a profit.

Dividends on this stock have swung wildly. They have been suspended as in 2009 and have also been increased by 200% as in 2011. Lately they have been on their way down again with a decrease in 77.8% in 2015, but then they are up some 50% in 2017. However, the dividend to be paid in September 2017 is 50% of that paid in June 2017. They are certainly not dividends you can count on. Every time they cut or suspend the dividend the share price crashes. Then it pops right back up when dividends are restarted or increased.

The company had a good year in 2016 and is expected to have an even better year in 2017. The second quarterly report seems to support this. For example the EPS was $1.78 in 2016 up by 141% from a loss of $4.29 in 2015. For 2014 is expected to up another162% to $4.66. The 12 month EPS to the end of the second quarter is $3.55. It seems well on its way to a good 2017 in EPS.

This company has very good debt ratios. The Liquidity Ratio for 2016 is 2.16 and the 5 year median is 2.67. The Debt Ratio is 3.64 with a 5 year median of 2.08. Leverage and Debt/Equity Ratios are 1.38 and 0.38 with 5 year median of 1.92 and 0.92. Good debt ratios can get a company though the bad times. These are good ratios for a material type stock to have as this business does have its ups and downs.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.76, 17.78 and 22.80. The 10 year corresponding ratios are 7.89, 13.19 and 19.68. The historical ratios are 9.52, 13.19 and 19.68. The current P/E Ratio is 6.15 based on 2017 EPS estimate of $4.66 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham price of $57.90. The 10 year low, median and high median Price/Graham Price Ratio is 0.56, 0.91 and 1.26. The current P/GP Ratio is 0.49 based on a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.

The 10 year Price/Book Value per Share Ratio is 1.03. The current P/B Ratio is 0.90 based on a stock price of $28.66, Book Value of $18,476M and BVPS of $31.98. The current P/B Ratio is some 13% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Also note that a stock is considered cheap if it is selling below the book value; that is with a P/B Ratio of less than 1.00

The historical dividend yield is 1.58%. The current dividend yield is 0.52% a value some 67% lower. The current dividend yield is based on dividends of $0.15 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively expensive. The problem with this test is that the dividends varied a lot over time. They have declined by some 30% per year over the past 5 years. This may not be a good test for this stock at this time.

When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus is a Buy. The 12 month stock price consensus is $34.57. This implies a total return of 21.14% with 20.62% from capital gains and 0.52% from dividends based on a current price of $28.66.

The 10 year median Price/Sales (Revenue) Ratio is 1.89. The current P/S Ratio is 1.40 a values some 26% lower. The current P/S Ratio is based on Revenue estimate for 2017 of $11,386M, Revenue per Share of $20.48 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.

Jason Phillips on Motley Fool likes this stock. The Canadian Press has an article on CBC News about Teck being fined for polluting a B.C. Waterway. Edgar Ambartsoumian on Seeking Alpha does an analysis of this stock. He talks about using it as an option play. See what analysts are saying about this stock on Stock Chase. They have mixed views.

Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is here Teck Resources Ltd.

The last stock I wrote about was about was HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more. The next stock I will write about will be Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more on Wednesday, October 18, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Peter Hodson... learn more on Thursday, October 17, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, October 13, 2017

HNZ Group Inc.

Sound bite for Twitter and StockTwits is: Cheap Industrial Stock. The stock is probably cheap but there is risk here. A fact in their favour is their good debt position. See my spreadsheet on HNZ Group Inc.

I do not own this stock of HNZ Group Inc. (TSX-HNZ, OTC-CDHPF). Canadian Helicopters Group Inc. has come up in Daily Buy and Sell Advisor of MPL Communications. Dividend Ninja Blogger also mentioned this stock in a blog entry talking about High Yield Canadian Stocks on his Blog. Richard Morrison wrote about small caps in the Financial Post in February 2011. He was screening financially healthy, profitable, reasonably valued small companies. He got 18 of them, many were former income trusts. One of the 18 stocks was this stock.

Dividends have been suspended by the company. However, the company gives as its aim to provide shareholders with growth and dividends. So I expect dividends to be reintroduced at some point in the future. They probably cannot afford them at this time.

They are well situated with debt. They have no long term debt. The Liquidity Ratio for 2016 is 2.44 and it has a 5 year median of 2.15. The current ratio is 1.98. The Debt Ratio for 2016 is 4.48 with a 5 year median of 4.46 and a current one of 3.87. Leverage and Debt/Equity Ratios for 2016 are 1.29 and 0.29 with a 5 year median of 1.35 and 0.35 and current ones of $1.35 and 0.35. Good debt ratios can carry companies through the bad times.

The 5 year low, median and high median Price/Earnings per Share Ratios are 13.23, 14.60 and 15.96. The 10 year ratios are 4.45, 6.46 and 8.70. The current P/E Ratio is 116.36 based on a stock price of $12.80 and 2017 EPS estimate of $1.11. It is obvious that you cannot judge this stock price by this test. However, if you look at 2019 the EPS estimate is $0.99 and the P/E for a price of $12.80 is 12.93. This says the current price is relatively cheap.

I get a current Graham Price of $6.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.48, 0.64 and 0.83. The current P/GP Ratio is 1.93 based on a stock price of $12.80. However, by 2019 the Graham Price is expected to be around $19.90 and that puts the current ratio at 0.64. By 2019 reckoning the stock price becomes reasonable and around the median.

The 10 year median Price/Book Value per Share Ratio is 1.01. The current P/B Ratio is 0.72 based on a Book Value of 430M, BVPS of $17.78 and a stock price of $12.80. This stock price testing suggests that the stock price is relatively cheap. This is probably the best way to judge this stock's price. Also, when the P/B Ratio is below 1.00 it means that the stock is selling below is theoretical breakup price.

The 10 year median Price/Sales (Revenue) Ratio is 1.02. The current P/S Ratio is 0.74 based on 2017 Revenue of $225M, Revenue per Share of $17.36 and a stock price of $12.80. The current P/S Ratio is some 28% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Looking at estimates and ratios a few years in the future, like in 2019 as I have done is fraught with danger. The further in the future you use estimates the more likely they are to be wrong. However, the company is going through a tough time and the future should be better. We just do not know how much better.

When I look at analysts' recommendations, I find Buy (2) and Hold (2) recommendations. The consensus would be a Buy. The 12 month stock price is $15.63. This implies a total return of 22.11% all from capital gain as dividends have been suspended. This is based on a current stock price of $12.80.

Financial News Staff at Financial News Review says that the ROE is low, but the Liquidity Ratio is good. PR staff at Piedmont Register give some technical information on this stock. The RSI is at 45.01 which show it is neither overbought nor oversold. Last year Gary Lamphier wrote in the Edmonton Journal a good article about this company and its CEO Don Wall. This company is not well followed so there is limited analyst information on it.

HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group Inc.

The last stock I wrote about was about was Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF)... learn more. The next stock I will write about will be Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more on Monday, October 16, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, October 11, 2017

Enbridge Income Fund Holdings Inc.

Sound bite for Twitter and StockTwits is: Utility Income Fund. I would not invest in this fund. It is too complicated, the Income Fund has a negative Book Value and I own Enbridge Inc. which has an investment in this fund. Price would seem reasonable using my normal stock price testing, but I would not guarantee I values are the correct ones. See my spreadsheet on Enbridge Income Fund Holdings Inc.

I do not own this stock of Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF). I have followed this stock for some time but I have not owned it. I do own Enbridge Inc. (TSX-ENB, NYSE-ENB). You would not want to invest in both this stock and Enbridge Inc. as Enbridge Inc. is invested in the fund this stock is invested in.

What I hate about this fund is that it is difficult to analyze. I am not the only one. I noticed in Morningstar they give Basic number of shares at 116 and diluted as 741. They really do not say what the diluted shares are but if you divide the diluted EPS by Net Income it is around 117. The Morningstar page is here. Actually the annual statements do say that the diluted is 741, but also give basic as 74 and 1585.

I am very focused on what I want from a stock's statements, but this one makes life difficult. It makes me spend far too much time trying to figure what where the information is that I want. Looking the 2017 quarterly statement they give a description of the changes to the outstanding units. Why cannot they not just tell you the final result?

When looking at this stock you not only have to look at the statements for Enbridge Income Fund Holdings, but also the underlying fund that it is invested in and this is the Enbridge Income Fund. As far as I can see it does not matter that Enbridge Income Fund Holdings Inc. has great debt ratios. It does matter that Enbridge Income Fund has awful ones. However, I do not believe the book value on the income fund is really negative.

For example, the Liquidity Ratio for ENF is 4.90 and the Debt Ratio is 26.29.The Liquidity Ratio for the Fund is 0.41 and the Debt Ratio is 0.81. This means that the current assets cannot cover the current liabilities and that the assets cannot over the liabilities. The Fund has a negative book value. A negative book value means that they have paid out more than they have earned.

There is also Enbridge Income Partnership LP and the Enbridge Commercial Trust. It is also very confusing. I do not like investments that complicated. It is too easy to misjudge or make a mistake when analyzing complicated stocks.

Not everyone thinks about this stock as I do. TD Securities recently put out a report saying that ENF has a relatively low-risk business model and it would be a good one for income oriented investors. They gave it a Buy rating.

Dividends are good. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The historical dividend yield is 6.96% and the 5 and 10 year median dividend yields are 5.46% and 6.25% respectively.

The Dividend Payout Ratio for this fund is 86.54% with 5 year coverage of 86.00%. But this means nothing as the dividends payouts are really paid for by Enbridge Income Fund. As far as I can tell they paid out 101% of their distributable cash in 2016 with 5 year coverage of 91.8%. However it is difficult to find this information and I am not entirely sure of it.

Dividend growth is low with growth of dividends at 9.8% and 7.2% per year over the past 5 and 10 years. The last dividend increase was in 2017 and it was for 10%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 14.52, 15.81 and 17.10. The corresponding 10 year values are 14.59, 17.23 and 20.24. The corresponding historical values are 14.75, 18.78 and 22.69. The current P/E Ratio is 14.76 based on a stock price of $31.88 and 2017 EPS estimate of $2.16. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $37.17. The 10 year median Price/Graham Price Ratios are 0.79, 0.93 and 1.12. The current P/GP Ratio is 0.86 based on a stock price of $31.88. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Book Value per Share Ratio is 1.06. The current P/B Ratio is 1.12 based on Book Value of $4,173M, BVPS of $28.43 and a stock price of $31.88. The current P/B Ratio is some 5.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The historical median dividend yield is 6.96%. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The current dividend yield is 7.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find Buy (3) and Hold (10) recommendations. The consensus recommendation is a Hold. The 12 month stock price s $35.85. This implies a total return of 18.89% with 12.45% from capital gains and 6.44% from dividends with a current price of $31.88. The Hold consensus does not match the future possible stock price. That shows a rather high total return for a Hold recommendation.

Ivanka Thompson on Bangalore Weekly says that last month both Desjardins and Dundee reduced their ratings on this stock to a Hold. A Staff Writer at Akron Register says that the company has a low value Piotroski F-Score of 3. Juan de la Hoz on Seeking Alpha has done a recent analysis of this income fund company. See what analysts are saying about this stock at Stock Chase. Some like the parent company of Enbridge Inc. better.

Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets. Its web site is here Enbridge Income Fund Holdings Inc.

The last stock I wrote about was about was Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. The next stock I will write about will HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more on Friday, October 13 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - John Collier... learn more on Thursday, October 12, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Tuesday, October 10, 2017

Linamar Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Dividends have grown over time. They are quite low at the moment and I would not buy this until dividend yield was again at least over 1%. See my spreadsheet on Linamar Corporation.

I do not own this stock of Linamar Corporation (TSX-LNR, OTC-LIMAF). I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. In 2008 I read an article that recommended this company as a dividend stock with good value. This stock used to be on the Investment reporter portfolio stock list as an average risk stock. However, it has now been taken off this list.

This company raised their dividends some 20% this year. This is after holding them steady for two years. This company has always been quite inconsistent in their dividend growth. They have increased and decreased their dividends at different points in time. The dividend growth over the past 5 and 10 years is at 4.56% and 5.24% per year to the end of 2016 and 8.45% and 7.18% per year over the past 5 and10 years to date.

Dividends are quite low generally with the dividend yield often below 1%. The current dividend yield is 0.62%. Their corresponding Dividend Payout Ratio is very low. The DPR for 2016 is 5.05% with 5 year coverage of 7.3%.

Even though the dividends have been inconsistent, holding this stock long term would work. I have data for the past 22 years. Over that time period the stock price has increased by 791% and if you look at price and dividends, the return over the past 22 years is 11.63% per year. The return over some 5 year periods during this 22 year period has been negative. For example, the total return for the 5 year ending in 2008 is a negative 17.11% per year. However in 2013, the total return for the past 5 years was 66.95% per year.

It is interesting that the dividend yield was 1.48% at the beginning of the period and 2.32% at the end when the 5 year total return was a negative 17.11% per year. For the 5 year period with the total return at 66.95% per, the dividend yield started at 2.32% and ended at 0.96%.

The Liquidity Ratio has been decent to good over the years. The ratio for 2016 is 1.69 with a 5 year median of 1.72. The Debt Ratio is at 1.98 in 2016 with a 5 year median of 1.97. The Leverage and Debt/Equity Ratios are in 2016 at 2.02 and 1.02 with 5 year medians of 2.01 and 1.01. It is good debt ratios that help companies get through the bad time.

The 5 year low, median and high median Price/Earnings per Share Ratios are 6.45, 9.50 and 12.55. The 10 year ratios are 7.38, 10.68 and 14.04. The historical ones are 8.76, 11.65 and 15.56. The current P/E Ratio is 9.37 based on a stock price of $77.93 and 2017 EPS estimate of $8.32. This stock price testing suggests that the stock price is reasonable and below the median.

I get a Graham Price of $91.49. The 10 year low, median and high median Price/Graham Price Ratios are 0.57, 0.82 and 1.07. The current P/GP Ratio is 0.85 based on a stock price of $77.93. This stock price testing suggests that the stock price is reasonable and around the median.

The Price/Book Value per Share Ratio is 1.43. The current P/B Ratio is 1.74 based on Book Value per Share of $2,917M, BVPS of $44.71 and a stock price of $77.93. The current P/B Ratio is some 22% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

The historical median dividend yield is 1.24%. The current dividend yield is 0.62% based on dividends of $0.48 and a stock price of $77.93. The current dividend yield is 50% lower than the historical median. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations, I find Buy (4), Hold (4) and Underperform (1) recommendations. The consensus recommendation would be a Hold. The 12 month stock price consensus is $78.00. This implies a total return of 0.71% with 0.09% from capital gains and 0.62% from dividends.

Stefani Robinson on True Blue Tribune says analysts have differing view of this company with CIBC raising their 12 month stock price to $81.00 and TD lowering it to $72.00. Jacquelyn LeBel on Global News talks about Linamar funding University Scholarships for women in Engineering and Business program at Western University. MTNV Staff Contributor says on MTNV given technical information including that this stock is undervalued. See what analysts are saying about this company on Stock Chase. They generally like this company but think maybe this is not the time to buy.

Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar Corporation.

The last stock I wrote about was about was K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF)... learn more The next stock I will write about will be Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF)... learn more on Wednesday, October 11, 2017 around 5 pm. Today on my other blog I will write about Money Show 2017 - Sid Mokhtari... learn more on Tuesday, October 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, October 6, 2017

K-Bro Linen Inc.

I spent a lot of time today on other things. Firefox updated and I got the dreaded blue screen. I uninstalled and reinstalled Firefox and it seemed ok but then via Outlook I could not click on any email link and have it linked to the site on Firefox. This really sucked. I googled the exact message and got some suggestions. The only one that worked was editing the registry.

I am glad for the lots of sites that help you though problems. I have found that there is always someone else that has and had the same problem and there is an answer. I was glad that the instructions were clear and step by step.

It seems that everything is a computer nowadays. My modem, my PVR and even by smart TV. They all get into difficulties and you have to do a hard reboot. Even my computer does not have an off switch. I had to unplug and then plug it in to get out of the blue screen.

Sound bite for Twitter and StockTwits is: Dividend paying consumer. It is currently not a dividend growth stock but I suspect it will become one again. Price is current probably reasonable even though the P/E is rather high for this sort of stock. See my spreadsheet on K-Bro Linen Inc.

I do not own this stock of K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF). People were talking about this stock at the 2009 Toronto Money Show. This was one income trust being touted as currently a good buy with very good yield. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.

This used to be a dividend growth stock although even at that the dividend growth was inconsistent. Dividend growth tended to be low and not for every year. Since 2014 dividends have remained flat. This was probably because they were payout out too much of the earnings in dividends. Some analysts expect that dividends will grow again over the next little while, but most seem to feel they will not in the short term.

The outstanding shares have grown by 2.8% and 3.9% per year over the past 5 and 10 years. Therefore if you are looking at growth, you should look at per share growth. For example, Revenues have grown at 6.4% and 9.4% per year over the past 5 and 10 years. Revenue per Share has grown at 3.5% and 5.3% per year. The true growth is that of Revenue per Share.

Because the earnings are volatile, it is a good idea to look at the running average over the past 5 years. That is comparing the 5 year average to date and the 5 year average to 6 years ago. The 5 year running average for Revenue over the past 5 years is 8.3%. The 5 year running average for Revenue per Share over the past 5 years is 5.6%.

The Dividend Payout Ratio for 2016 is 83% with 5 year coverage of 77%. The DPR for 2017 is expected to be around 103% then moving to around 57%. It is a good idea for this type of the stock for the DPR to be in the 50 to 60% range.

The 5 year low, median and high median Price/Earnings per Share Ratios are 21.54, 24.69 and 27.84. These are rather high for this sort of stock. The corresponding 10 year values are 15.05, 17.20 and 19.57. The 12 year values are the same as the 10 year ones. The current P/E Ratio is 33.53 based on a stock price of $38.90 and 2017 EPS estimate of $1.16. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $21.62. The 10 year low, median and high median Price/Graham Price Ratios are 1.16., 1.36 and 1.55. Here again I think that the ratios are too high for this type of stock. The current P/GP Ratio is 1.80 based on a stock price of $38.90. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 2.46. The current P/B Ratio is 2.17 based on a stock price of $38.90, Book Value of $171M and BVPS of $17.90. The current P/B Ratio is some 12% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

This stock used to be an Income Trust so that makes testing by the dividend yield harder. Since they became a corporation, the median dividend yield is 3.13%. The current dividend yield is 3.08% based on dividends of $1.20 and a stock price of $38.90. The current dividend yield is some 1% below this median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations, I find Buy (4) and Hold (3) recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $42.61. This implies a total return of 12.62% with 9.54% from capital gain and 3.08% from dividends based on a stock price of $38.90.

There is an interesting article on Textile World about this company earning the Hygienically Clean Hospitality certification. Devin Koller on Simply Wall Street says some interesting things on dividends, but he seems to be confusing the currencies. As far as I can see his $1.09 EPS is in US$ and the $0.10 dividend is in CDN$. Be careful of US sites talking about Canadian stock as this confusion of currencies seems to occur quite often. A TCT Contributor says on Twin City Telegraph says the Schaff Trend Cycle indicates a likelihood of a near term pullback for this stock. This press release on Market Wired talks about this company doing an equity offering at $38.00 a share. See what analysts are saying about this stock on Stock Chase. Their views are mixed.

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen Inc.

The last stock I wrote about was about was Le Chateau Inc. (TSX-CTU.A, OTC-LCUAF)... learn more. The next stock I will write about will be Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more on Tuesday, October 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, October 4, 2017

Le Chateau Inc.

Sound bite for Twitter and StockTwits is: Cheap for a reason. This company still seems to be in trouble. Analysts seemed to have started to drop this stock in 2011 and by 2015 none seem to be following it. See my spreadsheet on Le Chateau Inc.

I do not own this stock of Le Chateau Inc. (TSX-CTU, OTC-LCUAF). In June 10, 2012 I started spreadsheet because of a request from Blog reader. It was also on my list of dividend and special dividend paying stocks from a column Jennifer Dowty wrote about Dividend Paying stocks in 2010. They had given out two special dividends in 2007 and 2009.

This stock has gotten rid of the two levels of shares and there is now only one type of share, a voting share. However, they have now issued preferred shares. The other noticeable thing is the worsening of debt ratios.

The Long Term Debt/Market Cap Ratio is 5.95 for the financial year ending in January 2017. This is a problem when it is getting close to 1.00. It means that the market cap is lower than the long term debt. This is bad. In this case the ratio is very high at 5.95. For the end of the second quarter the ratio is 12.30. They took out more debt as non-current debt in the first 6 months of the 2017 financial year.

For the financial year of 2016 the Liquidity Ratio was low at 1.32 and the Debt Ratio was also low at 1.20. The Liquidity Ratio improved by the end of the second quarter of 2017 to 2.75 mainly due to short term debt moving to a longer term. The Debt Ratio was worse at 1.08.

The thing is that revenue peaked in January of 2010 and has been traveling down ever since. In the last 5 years, Revenue is down by 25% or by 5.6% per year. Revenue is down by 3.9% for the first two quarters of this year. This has to be turned around first.

I cannot do any stock price testing using the Price/Earnings per Share Ratio as there have been no earnings since January 2011. With negative earnings, I cannot calculate a Graham Price either. They have suspended the dividend so I cannot do any stock price testing using dividend yield.

The 10 year median Price/Book Value per Share Ratio is 0.99. The current P/B Ratio is 0.44 based on Book Value of $10.3M, BVPS of $0.34 and a stock price of $0.15. The current P/B Ratio is some 55.6% lower than the 10 year median. This stock price testing suggests that the stock price is relatively cheap. Also, P/B Ratio less than 1.00 says that you are buying less than the theoretical breakup value of the company. However, the book value is moving sharply south with a decline of 32.7% per year over the past 5 years.

The 10 year median Price/Sales (Revenue) Ratio is 0.46. The current P/S Ratio is 0.02 a value some 95% lower. The current P/S Ratio is based on last 12 months revenue of $217.8M, revenue per share of $7.21 and a stock price of $0.15. This stock price testing suggests that the stock price is relatively cheap. Here again the P/S Ratio is very low, but as noted above, Revenue is dropping also.

There is an interesting article by Leanne Delap in the Toronto Star about moving fashion manufacturing back to Canada. Le Chateau Inc. has about 35% of its stock made near Montreal. Francine Kopun in the Toronto Star talk about the troubles of both Reitman's and Le Chateau. There was a July 2017 news release on Market Wired talking about this company moving to TSX Venture Exchange. This press release on Market Wared talk about Le Chateau's founder Herschel Segal coming to Le Chateau's aid again.

Le Chateau is a Canadian specialty retailer and manufacturer of contemporary fashion apparel, accessories, and footwear at value pricing for style-conscious women and men of all ages. The Company has retail locations in Canada and in the Middle East. Le Chateau's web-based marketing is further broadening the Company's customer base among internet shoppers in both Canada and the United States. Its web site is here Le Chateau Inc.

The last stock I wrote about was about was Granite REIT (TSX-GRT.UN, NYSE-GRP.U)... learn more. The next stock I will write about will be K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF)... learn more on Friday, October 06 around 5 pm. Tomorrow on my other blog I will write about Something to Buy, October 2017... learn more on Thursday, October 05, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, October 2, 2017

Granite REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. Price is probably in the reasonable range. This is a REIT with some good changes in the past little while. See my spreadsheet on Granite REIT.

I do not own this stock of Granite REIT (TSX-GRT.UN, NYSE-GRP.U). I first bought some of this stock in 2003 when it was called MI Developments (TSX-MIM.A). It was a company connected with Frank Stronach and Magna. TD bank also had an Action Buy Call (Strong Buy) on this stock. By the December 2006, it was doing well and my stock was up some 15% per year. I bought some more. The year of 2006 was the last time I did well on this stock. It kept going down and I sold it in 2009; being discourage it would ever do well again.

Dividend started out low with a yield in the 1% range. However, with the decrease in the stock price (a decline of almost 75%) the yield of course went high. At one point it was more than 12%. The stock price went up and the yield drifted down to the 2 to 3% range. There was a significant increase in dividends in 2012 when the company became a REIT. The increase in 2012 was 145%.

Since the stock was spun from Magna in 2003, dividend rates have both gone up and down. There was a significant increase when it became a REIT. The dividend growth over the past 5 and 10 years is at 24% and 13% per year. The most recent increase was in 2017 and the increase was for 6.9%.

They have not gone well in growing their Revenue or FFO Outstanding shares have not changed much. Revenue has grown by 3.6% and 0.3% per year over the past 5 and 10 years. FFO has grown by 7.4% and is down by 0.5% per year over the past 5 and 10 years.

However they have done better in growth cash flow and net income. Cash Flow less WC is up by 6.8% and 11.3% per year over the past 5 and 10 years. Net income is up by 11.9% and 14.9% per year over the past 5 and 10 years.

The stock market highs of 2007 were not passed again until 2015. The total return to the end of 2016 is at 12.53% and 3.87% per year with dividends 5.94% and 3.14% and capital gains of 6.59% and 0.73%. If you look at total returns over the past 5 and 10 years to date you get total returns of 11.29% and 10.15% with 5.48% and 4.07% from dividends and 5.81% and 6.08% from capital gains. The current better returns for the 10 year period is because 10 years ago today the stock price is substantially lower than from 10 years ago to the end of 2016.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.12, 12.01 and 12.96. The 10 year corresponding values are 8.11, 9.31 and 10.50. The 14 year ratios are the same as the 10 year ratios. The current P/E Ratio is 9.33 based on a stock price of $50.07 and EPS for the latest 12 month period. This stock price testing suggests that the stock price is reasonable and around the median.

Because this is a REIT I looked at Price/Funds from Operations Ratios also. The 5 year low, median and high median P/FFO Ratios are 11.34, 12.61 and 13.57. The 10 year corresponding values are 10.94, 12.40 and 13.87. The current P/FFO Ratio is 15.50 based on 2017 FFO estimate of $3.23 and a stock price of $50.07. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $55.02. The 10 year low, median and high median Price/Graham Price Ratios are 0.67, 0.75 and 0.83. The current P/GP Ratio is 0.91 based on a stock price of $50.07. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 1.01. The current P/B Ratio is 1.20 based on Book Value of $1,962M, BVPS of 441.65 and a stock price of $50.07. The current P/B Ratio is some 19% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. If the current P/B Ratio was 20% higher than the 10 year ratio the stock price would be relatively expensive. So it is very close to expensive.

I get an historical median dividend yield of 3.29%. The current dividend yield is 5.20% based on dividends of $2.60 and a stock price of $50.07. The current dividend yield is some 58% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get 5 year median and 10 year median dividend yields of 5.65% and 5.55%. The current dividend yield of 5.20% is 7.89% and 6.29% lower than the 5 and 10 year median dividend yields. This stock price testing suggests that the stock price is relatively reasonable, but above the median.

I get a 10 year median Price/Sales (Revenue) Ratio of 8.57. The current P/S Ratio is 9.37 a value some 9.3% higher. The current P/S Ratio is based on 2017 estimate revenue of $220M, Revenue per Share of $4.67 and a stock price of $50.07. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations, I find Buy (1) and Hold (5). The consensus recommendation would be a Hold. The consensus 12 month estimate stock price is $48.64. This implies a total return 2.34% with a capital loss of 2.86% and dividends of 5.20%.

Nelson Bennett on Business Vancouver talks about the recent shake-up of the board of this REIT. Trapping Value does a review of this stock on Seeking Alpha. This press release on Cision talks about this REIT acquiring a portfolio in the US. This is what the activists shareholders wanted. Joyce Ramirez on The Ledger Gazette talks about Desjardins increasing their Q4 2017 earnings for this REIT. See what analysts are saying about this REIT on Stock Chase. There are very few analysts following this stock.

Granite is a Canadian-based REIT engaged in the ownership and management of predominantly industrial, warehouse and logistics properties in North America and Europe. Granite owns approximately 30 million square feet in over 90 rental income properties. Our tenant base includes Magna International Inc. and its operating subsidiaries as our largest tenants, in addition to tenants from other industries. Its web site is here Granite REIT.

The last stock I wrote about was about was Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF)... learn more. The next stock I will write about will be Le Chateau Inc. (TSX-CTU.A, OTC-LCUAF)... learn more on Wednesday, October 4, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks October 2017... learn more on Tuesday, October 3, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, September 29, 2017

Gluskin Sheff + Associates Inc.

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. This stock is still quite cheap under some measurements. I am hoping that it will return to a dividend growth format. At the moment I plan to hold the shares I have of this stock and hope that the future is brighter. See my spreadsheet on Gluskin Sheff + Associates Inc.

I own this stock of Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF). I started to review some of the stock recommended by Jennifer Dowty from a column she wrote and I reviewed in February 2010 on Dividends and Special Dividends. The title of the article in Investor's Digest was Dividend Stocks: Buy, Hold and Collect.

I did a spreadsheet on this stock in February 2010 and was not impressed with the stock. I chose this stock because I recognized the names of Gluskin and Sheff. I reviewed problems with this list in February 2010. This stock peaked in 2006 and had not recovered by August 2011. This includes Revenues, Earnings and Book Value. The Stock Price and Cash Flow peaked in 2007. I stopped looking at her stock, because of this one but decided to take another look in August 2011. I did pick a good one in Computer Modelling Group (TSX-CMG).

I had money in my TFSA to buy stock. GS's stock was relatively below the median and it gives out special dividends all the time. I also wanted to try out a high yield, low capital gain stock. This stock has been a disappointment so far. Last year my total return was a loss of 1.89% per year and this year the loss is 3.63% per year. Dividends have been good, but not enough to cover the capital loss.

Since the original principals have left and since they started a suit to obtain quite a few millions from GS, the dividend yields has been raising as the stock price has been falling. Because of the feud with the original founders this company has really been under a cloud since 2009. This cloud has now been lifted with the arbitration settlement.

Another disappointment has been that the last dividend increase occurred in the later part of 2015 under the June 2016 financial year. That increase was for 11.1%. There was also no special dividend in the June 2017 financial year. However, they have proclaimed a special dividend for the current financial year end in June 2018. This special dividend has a yield of 4.82% based on the current stock price of $18.89.

I take the extra dividend and the non-increase of the normal dividend to mean that they can afford a good dividend this year, but they are not that sure enough of the future to raise the normal dividend. A raise in a dividend is generally looked upon as management's way to show that they have faith in rising earnings in the near future.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.53, 12.27 and 14.01. The corresponding 10 year ratios are 10.94, 15.57 and 18.49. This stock has only been on the TSX for 12 years and the 12 yea ratios are the same as the 10 year ones. The current P/E Ratio is 13.49 based on a stock price of $18.89 and 2018 EPS estimate of $1.40. This stock price testing suggests that the stock price is relatively reasonable and around the median.

I get a Graham Price of $11.65. The 10 year low, median and high median Price/Graham Price Ratios are 1.49, 2.07 and 2.55. The current P/GP Ratio is 1.62. 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 6.07. This is a very high ratio. The current P/B Ratio is 4.39 a value some 28% lower. The current ratio is still quite high. The current P/B Ratio is based on Book Value of $134M, BVPS of $4.31 and a stock price of $18.89. This stock price testing suggests that the stock price is relatively cheap.

I get an historical dividend yield of 3.16%. The current dividend yield is 5.29% based on dividends of $1.00 and a stock price of $18.89. The current dividend yield is some 68% higher than the historical one. This stock price testing suggests that the stock price is relatively cheap.

The 10 year medina Price/Sales (Revenue) Ratio is 4.52. The current P/S Ratio is 3.66 based on 2018 financial year revenue estimate of $161M. The current P/S Ratio is some 19% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. To show as a cheap price, the current P/S Ratio would need to be 20% lower than the 10 year median, so it is close.

I get a 10 year Price/Assets under Management per Share of 9.26%. The current P/AUM is 6.34% which is some 31% lower. AUM is important as this can push the revenue, which pushes the earnings. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Buy (3) and Hold (4) recommendations. The consensus would be a Hold. The 12 month stock price is $19.86. This implies a total return of 15.25% with 5.13% from capital gains and 5.29% from dividends and 4.82% from a special dividend based on a current price of $18.89.

There is a news release dated July 6 2017 on Cision that talks about Gluskin Sheff's litigation by the co-founders and Gluskin Sheff. Mr. Gluskin had sought payment of $75 million, while Mr. Sheff sought payment of $110 million. No one I read thought they would get near those amounts. Settlement was $13.8M. Also the founders' superannuation payments are worth approximately 5.3M.

This article from the Canadian Press on BBN talks about GS getting a new CEO in Jeff Moody. Lisa Durand on Dispatch Tribunal talks about a recent insider selling. See what analysts are saying about this company on Stock Chase. Some think it might be a possible takeover by one of the banks.

Gluskin Sheff is an independent investment firm that manages portfolios for high net-worth individuals and institutional clients. Its web site is here Gluskin Sheff + Associates Inc.

The last stock I wrote about was about was Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more. The next stock I will write about will be Granite REIT (TSX-GRT.UN, NYSE-GRP.U)... learn more on Monday, October 2, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, September 27, 2017

Great-West Lifeco Inc.

Sound bite for Twitter and StockTwits is: Dividend growth financial. It, as well as other insurance companies will do better when interest rates go up. The dividend yield test says that the company is relatively cheap. This company is part of the Power Corp family so you would not buy Power Corp and/or Power Financial and this one. Life Insurance companies are great long term investments. See my spreadsheet on Great-West Lifeco Inc.

I do not own this stock of Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time. However, I will not buy it because I have Power Financial Corp. (TSX-PWF). Great West Lifeco Inc. is one of the companies under the Power Financial Corp. and Power Corp. (TSX-POW).

The dividend yield is currently good with low dividend growth. The current dividend is 4.17% with dividend growth over the past 5 and 10 years at 2.4% and 4.1% per year. This company used to be different. Until 2008 it had low to moderate dividend yields (1 to 2%) and a good growth rate (above 15% per year).

Insurance companies had a hard time with very low interest rates. They are currently adjusting and starting again to make money. This company had flat dividends from 2009 to 2014 inclusive. They just began dividend increases again and they are in the low range. The last dividend increase was in 2017 and it was for 6.1%. The last 2 years of increases were in the 6% range. It is a very good sign when dividends are being raised again.

The Return on Equity has been above 10% each of the past 10 years. The ROE for 2016 is 11.9% and the 5 year median is 14.5%. The Debt Ratio at 1.07 may seem low, but this is a normal one for this sort of financial company.

The 5 year low, median and high median Price/Earnings per Share Ratios were for 11.31, 12.43 and 13.55. The 10 year corresponding ratios were 11.34, 12.48 and 14.21. The historical ones are 12.03, 13.19, and 15.00. The current P/E Ratio is 13.25 based on a stock price of $35.24 and 2017 EPS estimate of $2.66. This stock price testing suggest that the stock price is relatively reasonable, but above the median.

I get a Graham Price of $34.39. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.00 and 1.16. The current P/GP Ratio is 1.02 based on a stock price of $35.24. This is 2.5% above the Graham Price. This stock price testing suggest that the stock price is relatively reasonable, but above the median.

The 10 year Price/Book Value per Share Ratio is 1.87. The current P/B Ratio is 1.75 based on Book Value of 419,949M, BVPS of $20.15 and a stock price of $35.24. The current ratio is some 6.3% lower than the 10 year median ratio. This stock price testing suggest that the stock price is relatively reasonable and below the median.

The historical median dividend yield is 3.17%. The current dividend yield of 4.17% is some 31.4% higher. The current dividend yield is based on dividends of $1.37 and a stock price of $35.24. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.78. The current P/S Ratio is 0.78 based on 2017 Revenue estimate of $44,511M, Revenue per share of $44.97 and a stock price of $35.24. This stock price testing suggests that the stock price is reasonable and at the median.

When I look at analysts' recommendations I find Hold recommendations (9) and Underperform recommendations (1). The consensus would be a Hold. The 12 month consensus stock price if $36.90. This implies a total return of 8.88% with 4.71% from capital gains and 4.17% from dividends.

Michael Stone on the Baldwin Journal does some tech analysis of this stock. Ryan Goldsman of Motley Fool currently likes insurance companies including this one. Vivian Park on Financial News Daily talks about recent rating changes on this company. (Note a sector perform is a Hold or #3 rating.) See what analysts are saying about this stock on Stock Chase. Some note that insurance companies will do better in a rising interest rate environment.

Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great-West Lifeco Inc. .

The last stock I wrote about was about was Trican Well Service Ltd (TSX-TCS, OTC-TOLWF)... learn more. The next stock I will write about will be Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF)... learn more on Friday, September 29, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Stephen Moore... learn more on Thursday, September 28, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, September 25, 2017

Trican Well Service Ltd

Sound bite for Twitter and StockTwits is: Industrial Services Stock. The stock price is probably reasonable, but there is probably a higher risk in this stock which possible future rewards may not cover. Unfortunately there will probably not be much recover in oil and gas prices. So companies will have to figure out how to make money in the current market conditions. See my spreadsheet on Trican Well Service Ltd.

I do not own this stock of Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). I was following Canyon Services Group Inc. and Trican Well Services Ltd. had a plan of arrangement with Canyon Shareholders. This review goes from Canyon Services (to 2016) to Trican Well Services (to current time). The current company is 56% from Trican Well Services and 44% is from Canyon Group Services. Since this new company of Trican you must follow from somewhere and because I was already following Canyon, I decided to follow the new bigger company from Canyon.

Neither company is currently paying dividends. Canyon stopped theirs this year and Trican has not paid any dividend since 2004. Hopefully dividends will be restarted otherwise I will consider dropping this stock from my list completely. A lot of companies are currently having difficulties, especially those connected with the oil and gas industry such as this company.

The combined company has good debt ratios. The current Liquidity Ratio is 1.80 and the current debt ratio is 3.87. The current Leverage and Debt/Equity Ratios are 1.33 and 0.33 respectively. Good debt ratios can help see a company through bad times.

Looking at the stock price via Price/Earnings per Share is not helpful. There are too many years of earning losses. Trican is also expected to have an earnings loss for 2017 so there is no current P/E Ratio. However, analysts do expect that the company will have earnings in 2018 and 2019. On the other hand these estimates are far off. The further in the future the estimates are the more unreliable they are.

I get a current Graham Price of $4.45. The 10 year low, median and high median Price/Graham Price Ratios are 0.52, 0.94 and 1.31. The current P/GP Ratio is 0.98 based on a stock price of $4.35. This stock price testing suggests that the stock price is reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.59. The current P/B Ratio is 1.33 a value some 16% lower. The current P/B Ratio is based on a book value of $1,130M, BVPS of $3.26 and a stock price of $4.35. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year Price/Sales (Revenue) Ratio is 1.82. The current P/S Ratio is 1.65 based on 2017 Revenue estimate of $911M, Revenue per Share of $2.63 and a stock price of $4.35. The current P/S Ratio is some 9% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations I find Strong Buy (4), Buy (10) and Hold (3) recommendations. The consensus recommendation is a Buy. The 12 month stock price consensus is $5.35. This implies a total return of 22.99% with 22.99% from capital gains and 0% from dividends.

An article on Small Cap Power approves of this company and says that it is a good time to buy. The staff at Financial News Week gives some tech analysis of this stock. See what analysts are saying about this stock on Stock Chase. Some do not like the sector this company is in.

Trican Well Service Ltd. is a Canada-based oilfield services company. The Company provides an array of specialized products, equipment, services and technology for use in the drilling, completion, stimulation and reworking of oil and gas wells in Canada, the United States, Kazakhstan, Russia and Norway, as well as limited operations in Saudi Arabia and Colombia. Its web site is here Trican Well Service Ltd.

The last stock I wrote about was about was Wajax Corp. (TSX-WJX, OTC- WJXFF)... learn more. The next stock I will write about will be Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more on Wednesday, September 27, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Edward Yardeni... learn more on Tuesday, September 26, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, September 22, 2017

Wajax Corp

Sound bite for Twitter and StockTwits is: Dividend paying industrial. Since they are quite inconsistent in dividend payments this stock maybe more suitable for people growing their portfolio or people not dependent on dividend income. This stock is coming out as relatively cheap on a number of good stock price testing of Dividend Yield, P/S Ratio and P/B Ratio. See my spreadsheet on Wajax Corp.

I do not own this stock of Wajax Corp. (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.

This company used to be an income trust and it changed to a corporation in 2011. In 2008 and 2009 it decreased its dividends some 58% to get its Dividend Payout Ratio down. In 2011 and 2012 they increased their dividends. However, EPS fell off in 2013 and they have been decreasing their dividends ever since.

In 2014 they were paying monthly dividends. In 2015 they changed the dividends to quarterly. Dividends since 2014 are down by almost 70%. So far in 2017 dividends are flat. They have made not announcement of any dividend changes and the third dividend of 2017 will be the same as for the first two quarters. Note that this company paid dividends from 1986 to 1991 and then paid no more dividends until 2004.

Even though dividends have decreased, the dividend yield is still in the good range so still quite high. The current dividend yield is 5.27%. The Dividend Payout Ratio is high at 185% in 2016 and 5 year coverage of 114%. However, analysts expect the DPR to be lower in 2017 at around 71%. The DPR for CFPS (less WC) is 36% in 2016 and has 5 year coverage of 43%. (It is best when this DPR is at 40% or lower.)

This stock has some very good debt ratios. The Liquidity Ratio is 2.07 for 2016 with a 5 year median of 2.07. The Debt Ratio is 1.71 for 2016 with a 5 year median of 1.58. The Leverage and Debt/Equity Ratios are ok at 2.40 and 1.40 for 2016with 5 year median of 2.57 and 1.57. The Long Term Debt/Market Cap Ratio for 2016 is 0.27 and this is also good. Good debt ratios mean that a company has a good chance of surviving bad times.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.71, 13.57 and 16.23. The 10 year corresponding ratios are 7.14, 9.43 and 11.71. The historical ratios are 8.74, 11.01 and 13.52. The current P/E Ratio is 13.45 based on a stock price $18.96 and 2017 EPS estimate of $1.41. This stock price testing suggests that the stock price maybe on the high side or relatively expensive.

I get a Graham Price of $20.93. The 10 year low, median and high median Price/Graham Price Ratios are 0.91, 1.14 and 1.34. The current P/GP Ratio is 0.91 based on a stock price of $18.96. This stock price testing suggests that the stock price maybe relatively reasonable and below the median. It is very close to relatively cheap.

The 10 year median Price/Book Value per Share Ratio is 2.41. The current P/B Ratio is 1.37 based on Book Value of $274M, BVPS of $13.81 and a stock price of $18.96. The current P/B Ratio is some 43% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

The current dividend yield is 5.27% based on dividends of $1.00 and a stock price of $18.96. The historical median dividend yield is 4.23%. The current dividend yield is some 25% higher. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.40. The current P/S Ratio is 0.30 based on 2017 Revenue estimate of $1,252M, Revenue per Share of $63.01 and a stock price of $18.96. The current P/S Ratio is some 25% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

What I see is that there are only 3 analysts following this stock. The recommendations give are Buy (1) and Hold (2). The 12 month stock price target is $25.00. This implies a total return of 37.13% with 31.86% from capital gain and 5.27% from dividends.

There is a new release on Cision with Wajax Corp saying they are redeeming all it their outstanding 6.125% Senior Notes. Becky Mayes on Simply Wall Street thinks that it is a good time to buy this stock. See what analysts are saying about this stock on Stock Chase. Few follow it, but comments are mixed.

Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax Corp.

The last stock I wrote about was about was Telus Corp. (TSX-T, NYSE-TU)... learn more. The next stock I will write about will be Trican Well Service Ltd (TSX-TCS, OTC-TOLWF)... learn more on Monday, September 25, 2017 before 8 am.

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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.