Wednesday, June 21, 2017

Computer Modelling Group Ltd

Sound bite for Twitter and StockTwits is: Dividend growth tech. This is considered a tech stock, but it is also in the oil and gas sector. It is lately having a hard time as is every stock in the oil and gas sector. The price is probably reasonable. See my spreadsheet on Computer Modelling Group Ltd.

I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF). When selling SNC in July 2008, I was looking for something to buy. This company is a dividend paying growth stock that would also be considered to be a small cap with a capitalization at that time of around $115 million. At that time Insiders were buying this stock. It has great growth and it is information technology a favourite sector of mine.

This stock used to have a good record of increasing the dividends. However, it is having a hard time as is all the stocks in the oil and gas sector. Currently they are having a hard time covering the dividend with earnings. They have prudently stopped increasing their dividends. The dividends have been flat since 2015. I doubt there will be any dividend increases until the EPS is above the dividends again. Analysts do not expect that to have over the next couple of years. Analysts do not expect the dividends to decrease either over the next couple of years.

This has been a great stock for me. I have held it for 8.9 years and my total return is 26.99% with 19.72% from capital gains and 7.27% from dividends. The dividends I have received so far have covered 102% of the cost of my shares. I am making a dividend yield of 17.4% on my original stock purchase price.

The thing is that I will continue to do fine on this stock, but people buying it today will not do as well. The easy money on this stock has been made. However, it could do very well again if oil and gas picks up in price. It is hard to know if and when this might occur.

A positive point is that the stock has very good debt ratios. The Liquidity Ratio is 1.96. It has no long term debt. The Debt Ratios is 2.22. The Leverage and Debt/Equity Ratios are 1.82 and 0.82 respectively.

The 5 year low, median and high median Price/Earnings per Share Ratio are 20.70, 30.26 and 37.95. The corresponding 10 year values are 20.34, 25.62 and 30.86. The historical ratios are 9.59, 13.15 and 16.98. The P/E Ratios have grown over time, especially after 2010. The current P/E Ratio is 33.83 based on a stock price of $10.15 and 2017 EPS estimate of $0.30. This stock price testing suggests that the stock price might be reasonable, but it is above the median.

I get a Graham Price of $2.23. The 10 year low, median and high median Price/Graham Price Ratios are 2.60, 3.64 and 4.33. The current P/GP Ratio is 4.55 based on a stock price of $10.15. This stock price testing suggests that the stock is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 11.77. The current P/B Ratio is 13.74 based on a stock price of $10.15 and BVPS of $0.74 ($58.178M BV). The current P/B Ratio is some 16.7% higher than the 10 year median ratio. This stock price testing suggests that the stock price is reasonable, but above the median.

The historical dividend yield is 3.55%. This current dividend yield is 3.94% based on dividends of $0.40 and a stock price of $10.15. The current dividend yield is some 11% higher than the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations, I find Buy, Hold, Underperform and Sell recommendations. Most of the recommendations are a Hold, and the consensus recommendation is a Hold. The 12 month stock price consensus is $9.81. This is below the current stock price of $10.15. So the total return would be 0.59% with 3.94% from dividends and a capital loss of 3.35%.

Renata Jones on Sports Perspectives talks about insider selling at this company. Over the past year the Insider Selling/Market Cap Ratio was 0.48%. This is very high as generally this ratio is in the 0.01% or 0.02% range. The problem with selling is that you never know why people are selling. When there is insider buying you know it is because the insider feel good about the company's future.

When insiders sell it could be for a lot of reasons. They may just need to money. Often in tech companies people are selling because of stock options and they look at stock options as part of their salary. For this company I am following the shares held by the CEO, CFO, another officer, two directors and the Chairman. Here the officer, one director and the chairman had the same number of shares as last year. The CFO and one director increased their shares. The CEO decreased his shares.

Sarah Dixon on Clayton News Review gives some technical analysis of this company. She said it has a The Piotroski F-Score of 6, where a score of 9 shows good financial strength and a sore of one show a low value stock. Demetris Afxentiou of Motley Fool likes this stock. See what analysts think of this stock on Stock Chase. They mostly like it, but it is not widely followed.

Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling Group Ltd.

The last stock I wrote about was about was CI Financial Corp (TSX-CIX, OTC- CIFAF)... learn more. The next stock I will write about will be Parkland Fuel Corp. (TSX-PKI, OTC-PKIUF)... learn more on Friday, June 23, 2017 around 5 pm. Tomorrow on my other blog I will write about Debt Ratios... l learn more on Thursday, June 22, 2017around 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, June 19, 2017

CI Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price is relatively cheap to reasonable. This industry might have seen better days, but I doubt if it will fold up anytime soon. People have been forecasting the demise of this industry for years mainly because of the high fees and mutual fund not beating the market. The industry is slowing changing, but people are still buying mutual funds. See my spreadsheet on CI Financial Corp.

I do not own this stock of CI Financial Corp (TSX-CIX, OTC-CIFAF). I started to follow this stock originally because it was a Mutual Fund company. People talked about it being easier to make money from buying a Mutual Fund company than buying Mutual Funds. When they became a Unit Trust in 2006, dividends were significantly increased, but these dividends proved to be unsustainable. They changed back to a corporation in 2009 and dividends were decreased in 2010.

Since that time, they have been increasing their dividends since 2011. In June 2014, MPL communications called this stock a Buy and advised that they were adding it to their list of Key Stock for the Investment reporter.

Currently the dividend is moderate to good and the dividend increases moderate. These have been up and down during this company's history, but that was because it became an income trust and then a corporation again. The current dividend is 5.21% which is good, but the historical median dividend yield is 3.47% which is moderate.

The dividend growth over the past 5 and 10 years is at 9% and 15.7% per year. The 9% increase is moderate and the 15.7% is good. The last dividend increase was in 2017 and it was for just 2.2% which is a low increase. The increase in 2015 was low also at 4.5%.

They can afford the dividends. The Dividend Payout Ratio for 2016 for EPS is 73.2% and the 5 year median is 69.2%. The Dividend Payout Ratio of 2016 for CFPS is a bit high at 58% with a 5 year median of 52%. I prefer to see the last one no higher than 40%.

For Mutual Fund companies, analysts tend to look at Assets under Management (AUM) rather than revenue to see if there is growth. For this company the AUM has grown by 11% and 7.6% per year over the past 5 and 10 years. This growth is quite good.

The 5 year low, median and high median Price/Earnings per Share Ratios are 16.57, 18.32 and 19.89. The 10 year values are 14.66, 16.51 and 19.08. The historical values are 15.93, 18.32 and 20.10. The current P/E Ratio is 12.64 based on a stock price of $27.05 and 2017 EPS estimate of $2.14. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $17.70. The 10 year low, median and high median Price/Graham Price Ratios are 1.49, 1.69 and 1.95. The current P/GP Ratio is 1.53 based on a stock price of $27.05. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year Price/Book Value per Share Ratio of 3.99. The current P/B Ratio is 4.16 a values some 4% higher. The current P/B Ratio is based on BVPS of $6.51 (BV of $1724.1M) and a stock price of $27.05. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The historical median dividend yield is 3.47%. The current dividend yield is 5.21% a value some 50% higher based on dividends of $1.41 and a stock price of $27.05. This stock price testing suggests that the stock price is relatively cheap.

The 10 year P/S Ratio is 4.31. The current P/S Ratio is 3.48 based on 2017 Revenue estimate of $2060M, Revenue per Share of $7.76 and a stock price of $27.05. 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. (If the current ratio had been 20% then the 10 year median, then the stock price test would be showing that the stock is relatively cheap.)

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 is $29.61. This implies a total return of 14.68% with 9.46% from capital gains and 5.21% from dividends.

Stephanie Bedard-Chateauneuf of Motley Fool likes this company better than IGM Financial Inc. (TSX-IGM, OTC-IGIFF). Sarah Dixon on Clayton News Review gives some statistics on this stock. She says that the The Piotroski F-Score on this stock is 6. Ivanka Thompson on Bangalore Weekly talks about some recent analysts' recommendations on this stock. Analysts have mixed views on Stock Chase.

CI Financial Corp. is a diversified wealth management firm and one of Canada's largest investment fund companies. CI is an Independent and Canadian-owned company. This company promotes and manages mutual funds and other investment products through its wholly-owned subsidiaries of CI Investments Inc., and Assante Wealth Management. CI became a public company in June 1994. It was then listed on the Toronto Stock Exchange. Its web site is here CI Financial Corp.

The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN)... learn more. The next stock I will write about will be Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF)... learn more on Wednesday, June 21, 2017 around 5 pm. Tomorrow on my other blog I will write about More is Not Better... learn more on Tuesday, June 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, June 16, 2017

Algonquin Power & Utilities Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Stock price is probably reasonable. The main reason for the stock price testing to be so different is that although revenue has been growing faster than book value and growth is in the last 5 years. The 10 year growth is much lower than the 5 year growth. See my spreadsheet on Algonquin Power & Utilities Corp.

I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN). This is a dividend paying utility stocks. I got it off a list of dividend paying utility stocks. Also, I own Emera Inc. and this company owns shares in Algonquin Power.

This stock started to be listed on the NYSE in November of 2016. Here is the announcement on Newswire.

This is a Canadian company that reports in Canadian dollars, but pays the dividend in US$. They are listed on the NYSE. I find this paying dividends in US$ annoying. I do not like US$ dividends as you never know exactly what you are going to get. Also, since they report in CDN$ it is hard to valuate about Dividend Payout Ratios. (It is easy to get it wrong.)

They switched to paying dividends in US$ in 2014. So looking at dividend growth over the past 5 and 10 years in US$ and CDN$ you get quite different values. The growth of the dividends over the past 5 years in US$ is 9.61% per year and in CDN$ is 15.87% per year. The decline in dividends over the past 10 years is in US$ at 6.46% per year and in CDN$ is 5.13% per year.

This company used to be an income trust company. As such it decreased it dividends by some 74% when it changed to a corporation. The change was in 2009 and the dividend decreases was in 2008. The company started to increase their dividends again in 2010.

The Dividend Payout Ratio for 2016 was high at 123% and it has a 5 year median of 123% also. However, they did have a tax pool that will probably last until 2019. Also, analysts expect the DPR for EPS will be around 99% in 2017. They seem to have a good chance to have a reasonable DPR for EPS before the Tax Pool runs out.

Debt Ratios are marginal. The Liquidity Ratio for 2017 is just 0.90 with a 5 year median of 1.08. A Liquidity Ratio below 1.00 means that current cash cannot cover current liabilities. With cash flow added in after dividends it becomes 1.16. It is typical for utilities to need cash flow to get a high enough Liquidity Ratio. The Debt Ratio is 1.43 with a 5 year median of 1.81. I like both of these to be at 1.50 or above for the sake of safety.

The Leverage and Debt/Equity Ratios are even a little too high for a utility at 4.29 and 3.00. I prefer these for utilities to be below 4.00 and 3.00 respectively. For 2017 the Debt/Market Cap Ratio is 1.25. It is not good for this ratio to be close or above 1.00. If the ratio is 1.00, it means that Long Term debt is equal to the stock's market cap. However, in the first quarter it moved down to 0.89 because of lower long term debt and higher market cap.

The Return on Equity is below 10% always. The ROE for 2017 is 6.3% and the 5 year median is 5.5%. The ROE on comprehensive income is somewhat better over the past 5 years with a 5 year median of 8.9%, but the ROE on comprehensive income was 5.2% in 2017.

It is interesting to look at this company long term. The capital gain is at 0.45%, 0.61% 1.38% and 12.15% per year over the past 19, 15, 10 and 5 years. This company was listed on TSX in December 1997, 19 years ago. The total return is at 7.33%, 6.69%, 5.84% and 17% per year over the same time periods. In the early years, the return was all dividends. This can occur in income trust stock. However, once a company becomes a corporation, dividends will be lower. Before the dividends were decreased, the long term median dividend yield was 9.1%.

The 5 year low, median and high median Price/Earnings per Share Ratio are 23.61, 27.63 and 32.55. The 10 year values are 23.16, 26.55 and 29.29. The historical values are 23.75, 27.63 and 31.22. I think that these are rather high for a utility stock. The current P/E Ratio for is 22.13 based on a stock price of 13.94 and 2017 EPS estimate of $0.63. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of 10.12. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.40 and 1.58. The current P/GP Ratio is 1.38 based on a stock price of $13.94. This stock price test suggests that the stock price is relatively reasonable and below the median.

I get a 10 year Price/Book Value per Share Ratio of 1.49. The current P/B ratio is 1.76. The current P/B Ratio is based on BVPS of $7.22 ($2,778.6M BV) and a stock price of $13.94. The current P/B Ratio is some 29% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

If I use an adjusted historical median dividend yield, which I get to be 2.99%, the current Dividend yield of 4.50% is some 50% higher. The current dividend yield is based on dividends of $0.63 CDN$ ($0.47 US$), current exchange rate of 1.3453 and a stock price of $3.94. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median P/S Ratio is 2.38. The current P/S Ratio is 2.49 based on a stock price of 13.94, Revenue of $2,150M and Revenue per Share of $5.59. The current P/S Ratio is some 5% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus would be a Buy. The 12 month stock price consensus is $14.30. This implies a total return of 7.08% with 2.58% from capital gains and 4.50% from dividends based on a current stock price of $13.94.

Ryan Goldsman at Motley Fool calls this a defensive company. Chris MacDonald on Bay Street talks about insider buying. Tristan Rich on The Markets Daily talks about recent recommendations for this stock. See what analysts are saying about this company on Stock Chase. They remark on its recent run-up.

APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC's water utility subsidiary, provides regulated water utility services. Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services. Algonquin Power Co., APUC's electric generation subsidiary, includes renewable energy facilities and thermal energy facilities. Its web site is here Algonquin Power & Utilities Corp.

The last stock I wrote about was about was Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more. The next stock I will write about will be CI Financial Corp (TSX-CIX, OTC- CIFAF)... learn more on Monday, June19, 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, June 14, 2017

Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Stock. The way to make money long term is buy good dividend growth companies when they are cheap (or at least at a reasonable price) and hold on to them. This company is rather cheap and it is a dividend growth company. See my spreadsheet on Power Corp of Canada.

I do not own this stock of Power Corp of Canada (TSX-POW, OTC-PWCDF). I started following this stock because it was on the Dividend Achievers, the Dividend Aristocrats lists and also on Mike Higgs' list. It is a stock that I notice has been recommended lately as good value (October 2008). I would not buy it because I have shares in Power Financial, which this company controls. My son owns this company as he bought it instead of Power Financial.

Currently, the dividend yield on this stock is good with low growth. The current dividend yield is 4.91% based on dividends of $1.43 and a stock price of $29.19. The 5 year median is 4%. The growth over the past 5 and 10 years is 4% and 5.6% per year. There was no dividend growth from 2010 and 2014 inclusive and this is why dividend growth has been quite low lately.

This company is in financial services and these sorts of company have had a hard time coming out of the last recession. They own a lot of insurance companies and insurance companies especially had a hard time dealing with very low interest rates.

This company used to have moderate dividend yields and good growth. The dividends used to be in the 2% range and the dividend increases in the 17% range. I do not see this happening again with the very low interest rates. It is hard to say how long we will have very low interest rates. These sorts of things go on longer than you image.

The stock has picked up recently. Over the past 5 years the stock has a total return of 9.37% per year with 4.76% per year from capital gains and 4.61% per year from dividends. The 10 year return is lousy with a total return of 1.89% per year with a capital loss of 1.59% per year and dividends of 3.49% per year.

I have data on this company back to 1987, so I took a look at 15 and 20 year returns. The total return over the past 15 years is 6.72% per year with 2.93% per year from capital gains 3.78% per year from dividends. The total return over the past 20 years is 12.35% per year with 7.65% per year from capital gains and 4.69% per year from dividends. This is rather quite a good longer term return. That is why I buy and hold for the longer term.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.54, 12.46 and 13.38. The corresponding 10 year ratios are 10.96, 13.12 and 14.37. The historical ratios are 10.97, 13.10 and 15.00. The current P/E Ratio is 12.37 based on a stock price of $29.19 and EPS estimate for 2017 of 2.36. This stock price testing suggests that the stock price is relatively reasonable and around the median or slightly below the median.

I get a Graham Price of $46.56. The 10 year low, median and high median Price/Graham Price Ratios are 0.75, 0.92 and 1.06. The current P/GP Ratio is 0.63 based on a stock price of $29.19. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Book Value per Share Ratio is 1.34. The current P/B Ratio is 0.72 a values some 46% lower. The current P/B Ratio is based on BVPS of $40.82 ($18,932M BV) and a stock price of $29.19. This stock price testing suggests that the stock price is relatively cheap.

I get an historical dividend yield is 2.30%. The current dividend yield is 4.91% based on a stock price of $29.19 and dividends of $1.43. The current dividend yield is some 113% higher than the historical dividend yield. Even the 5 year median dividend yield is 23% lower at 4%. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Buy and Hold Recommendations. Most of the recommendations are a Hold so the consensus recommendations would be a Hold. The 12 month stock price consensus is $33.29. This implies a total return of 18.96% with 14.05% from capital gains and 4.91% from dividends. To me these figures do not match up as it is a good return for a Hold recommendation.

Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, communications and other business sectors in North America, Europe and Asia. Some of it subsidiary companies include Power Financial, the Pargesa group and Gesca and Square Victoria Digital Properties. Its web site is here Power Corp of Canada.

Sandrine Rastello and Gerrit De Vynck via Bloomberg writes in the Globe and Mail about Power Corp inviting in FinTech to spur innovation in the company. They see FinTech as the future. Staff writers at The Standard talks about some technical indicators for this stock. The RSI indicators show that the stock is neither under or overvalued. Marguerite Chambers on Huron Report talks about recent analysts ratings for this company. See what analysts are saying about this company on Stock Chase. Views vary widely on this company.

The last stock I wrote about was about was Liquor Stores N. A. Ltd. (TSX-LIQ, OTC-LQSIF)... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN)... learn more on Friday, June 16, 2017 around 5 pm. Tomorrow on my other blog I will write about Investing Easy... learn more on Thursday, June 15, 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, June 12, 2017

Liquor Stores N.A. Ltd

Sound bite for Twitter and StockTwits is: Turnaround situation? I think that the price may not be bad, but it is a risk. The thing is that this is a turnaround situation on a consumer type company. These companies do not generally have big wins so even if it is turned around, can you image shareholders making a really big profit for the risk taken? However, I can see a current shareholder keeping the stock and possibly get a decent return for their money. The problem is how long will this take? See my spreadsheet on Liquor Stores N.A.

I do not own this stock of Liquor Stores N. A. Ltd. (TSX-LIQ, OTC-LQSIF). The idea of following this stock came from a reader of my blog. My first impression and continuing impression on this stock is that this is liquor sales company that cannot seem to make a profit.

This used to be an income trust company. It decreased its dividends by some 33% when it because a corporation. It obviously was not enough because the lower dividend was unstainable also. For this year they further decreased the dividend by 66.7% or 78% in total from its income trust dividend.

They are expected to be able to cover their dividend in 2017 with a Dividend Payout Ratio for EPS of around 87.8%. It was at 2700% in 2017. This is because they made so little in 2017. The DPR for CFPS was also high and for 2016 it was 84.7%, but is expected to be a more respectable value of 41.8% in 2017. Analysts do not expect any more changes to the dividends over the next few years.

Not only does a company need increasing revenue, but they need to be able to make a profit on their revenue. For this company, their earnings peaked in 2010. I must say that a lot of consumer companies are currently having a hard time in the long slow recovery that has been going on.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.91, 22.96 and 27.02. The 10 year values are 16.7, 19.01 and 24.05. The historical values are 14.86, 16.43 and 23.47. The current P/E Ratio is 25.12 based on a stock price of $10.30 and 2017 EPS estimate of $0.41. This is rather a high P/E Ratio for a stock that might be a turnaround situation. This stock price testing suggests that the stock price is relatively expansive.

I would think that the historical ratios are more realistic P/E Ratios for a consumer stock. The thing is that no matter how low the EPS goes the stock price will only fall so much because there is value in the company. The P/E Ratios are sometimes not the best way to determine if a stock price is good or not.

I get a Graham Price of 8.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 1.04 and 1.26. The current P/GP Ratio is 1.19 based on a stock price of $10.30. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year Price/Book Value per Share Ratio is 1.13. The current P/B Ratio is 1.27 based on a BVPS of $8.08 ($223.5M BV) and a stock price of $10.30. The current P/B Ratio is some 13% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. Also, note that a P/B Ratio of 1.50 and below is considered a good P/B Ratio. So the current P/B Ratio of 1.27 is still on the low side.

Using the Dividend Yield as a test is not great one for this stock. First the stock used to be an income trust and income trust had higher dividend yields that the stock will ever see again. Secondly, the dividend have but cut twice by 33% in 2011 and by 66.7% in 2016. I get an adjusted historical median dividend yield of 4.38%.

The current dividend is 3.5% based on a current dividend of $0.36 and a stock price of $10.30. The current dividend is some 20% below the adjusted historical median and this would suggest that the stock is relatively expensive. On this test a current dividend at 20% or higher above the historical median suggest a relatively expensive price. So this test put the stock price just over the line.

The only stock price test that shows something different is the P/S Ratio test. The 10 year median P/S Ratio is 0.57. The current P/S Ratio is 0.35 based on Revenue estimate for 2017 of $819M, Revenue per Share estimate for 2017 of $29.61 and a stock price of $10.30. The current P/S Ratio is some 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

However, not only does a company need to have revenue, it also needs to make a profit from the revenue. This company so far has lately shown it can do that. It is certainly not easy to get a handle on what is a good price for the company. The current one could be reasonable.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold Recommendations. There are more Strong Buy and Buy recommendations than Hold recommendations and the consensus would be a Buy. The 12 month stock price consensus is $11.25. This implies a total return of 12.72% with 3.50% from dividends and 9.22% from capital gains.

According to a press release by Market Wired there are two proxy's for this company. One set of proxies are from the company and one set is from dissidents. Barry Critchley also talks about the proxy fight in a May article on the Financial Post. This news release by CNWsays that ISS agrees change is needed at Liquor Stores N.A. Renata Jones on Sports Perspectives talks about recent ratings on this company. See what analysts are saying about this company on Stock Chase.

Liquor Stores N.A. Ltd. is a Canada-based operator of retail liquor stores. The Company operates over stores in Alberta, British Columbia, New Jersey, Alaska and Kentucky. Its web site is here Liquor Stores N.A.

The last stock I wrote about was about was Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more on Wednesday, June 14, 2017 around 5 pm. Tomorrow on my other blog I will write about Success Long Term... learn more on Tuesday, June 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, June 9, 2017

Intertape Polymer Group Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. This stock is probably a dividend growth stock or is trying to be one. Stock price testing gets a current stock price that is relatively reasonable and around the median to one that is relatively expensive. Note that Ratios are the same in US$ terms and CDN$ terms. See my spreadsheet on Intertape Polymer Group Inc.

I do not own this stock of Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF). I got this stock from Peter Keyser who I met in an Investment Club.

Dividends are paid in US$, so for a Canadian investor, you will never know exactly what your dividends will be. They only started to pay dividends in 2013 and they have grown at 19% per year over the past 3 years. However, analysts' do not seem to feel that dividends will grow any more over the next few years.

The Dividend Payout Ratio for 2016 for EPS was 63.5%. The 5 year median DPR for EPS is 58.6%. The DPR for CFPS was 25% in 2016 and the 5 year median is 25% also. So they can currently afford their dividends. Analysts expect the EPS to go up over the next couple of years, so affording the dividend should not be a problem.

Currently the dividend is moderate with good dividend growth. The current dividend yield is 3.24% based on a stock price of $23.31 CDN$ and dividends of $0.76 CDN$ ($0.56 US$). Yield would be the same in US$ and CDN$. As mentioned above the current dividend growth is 19% per year. However, if they do not raise the dividends this year this can change.

The debt ratios are good. The Liquidity Ratio is good at 2.17 for 2016. The 5 year median ratio is 2.32. The Debt Ratio is 1.72 for 2016 with a 5 year median of 1.80. The Leverage and Debt/Equity Ratios are 1.39 and 1.39 respectively with 5 year median of 2.32 and 1.32. These last ratios are what would be expected for an Industrial stock.

Return on Equity was been above 10% for 5 of the last 5 years. The ROE for 2016 is 21% and the 5 year median is 21%. The ROE for comprehensive income is similar with the ratio for 2016 at 21.5% and the 5 year median at 21.1%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.68, 16.53 and 22.11. The 10 year corresponding ratios are 6.88, 11.66 and 14.51. The historical ones are 8.61, 15.26 and 21.70. The current P/E Ratio is 15.28 based on a stock price of $23.31 and 2017 EPS estimate of $1.53 CDN$ and $1.13 US$. This stock price testing suggests at the stock price is relatively reasonable and around the median.

I get a Graham Price of 13.76 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 0.63, 1.04 and 1.40. The current P/GP Ratio is 1.69 based on a stock price of $23.31 CDN$. 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 1.64. The current P/B Ratio is 4.42 based on BVPS of $5.27 (BV $311.77 CDN$, $230.89 US$) and a stock price of $23.31 CDN$. The current P/B Ratio is some 168% higher than the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 3.25% based on dividends of $0.76 CDN$ or $0.56 US$ and a stock price of $23.31 CDN$. The 4 year median dividend yield is 3.22% a value some 1% lower. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year P/S Ratio is 0.38 US$. The current P/S Ratio is 1.17 based on Revenue of $873M US$, Revenue per Share of $14.77 US$ and a stock price of $17.23 US$. The current P/S Ratio is some 209% above the 10 year median ratio. This stock price test suggests that the stock price is relatively expensive. (Note it does not matter if you test in US$ or CDN$, the test turn out the same.)

When I look at analysts' recommendations, I find Strong Buy and Buy recommendations. Most of the recommendations are a Buy, so the consensus recommendation is a Buy. The 12 month stock price is $20.82 US$ or $28.11 CDN$. This implies a total return of 24.09% with 3.25% from dividends and $20.84% from capital gains.

Vivian Currie on San Times talks about analysts' ratings on this stock. The stock recently had 3 Buy Ratings. Thomas Auclair on Simply Wall Street talks about this company's dividends. He said that they can afford them. Interestingly, he expect the dividends to decline from the current $0.56 US$ to $0.502 US$ in three years' time. Sarah Corning on Ozark Times gives a more technical analysis of this stock. She has an interesting way of looking at dividend growth. See what analysts are saying about this stock on Stock Chase. There are some interesting comments, but generally the stock is liked.

Intertape Polymer Group Inc. operates in the specialty packaging industry in North America. The Company develops, manufactures and sells a range of paper and film-based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin packaging films, woven coated fabrics and complementary packaging systems for industrial and retail use. Its web site is here Intertape Polymer Group Inc.

The last stock I wrote about was about was IGM Financial Inc. (TSX-IGM, OTC-IGIFF)... learn more. The next stock I will write about will be Liquor Stores N. A. Ltd. (TSX-LIQ, OTC-LQSIF)... learn more on Monday, June 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.

Wednesday, June 7, 2017

IGM Financial Inc.

Sound bite for Twitter and StockTwits is: Mutual Fund Company. The dividend yield is good and the price is cheap to reasonable but below the median. You may not get a better price. But the stock is cheap because mutual fund companies have not done well lately and there may be further legislation or regulations done by the government in the near future. See my spreadsheet on IGM Financial Inc.

I do not own this stock of IGM Financial Inc. (TSX-IGM, OTC-IGIFF) but I used to. I originally bought this stock to replace AGF Management (TSX-AGF.B). IGM was known as a dividend growth stock and it was on a lot of lists of good stocks, including Mike Higgs' and Dividend Aristocrats. I sold this 2011 because I had Power Financial, of which this company is partially owned by and I wanted to rationalize my portfolio. So I sold this stock and bought more of Power Financial. I purposely sold at a low point to reduce taxes and did a buy at a low also.

This company used to have moderate dividends and good increases. Dividends median was just over 3%. The dividend growth to 2008 was over the previous 5 and 10 years at 15.1% and 18.1% per year. However, like a lot of financial companies they have had problems since 2008 recession. Current the dividend is good and the dividend growth is low. The current dividend is 5.6% and the dividend growth is 1.4% and 3.9% per year over the past 5 and 10 years.

During the past 5 years the dividend was only increased twice, in 2012 and 2015 for 2.4% and 4.7%. There has been no increase so far this year and two dividends have already been paid. I would not expect any improvement anytime soon. However, analysts seem to feel that the company will raise their dividends over the next couple of years.

They can afford their dividends. The Dividend Payout Ratio for EPS for 2016 is 70.5% and the 5 year median is 71.9%. The DPR for CFPS for 2016 is 44.1% and the 5 year median DPR for CFPS is 43.6%. However, the DPR for CFPS I would prefer it to be 40% or lower. However, this ratio has always been in the 40% range.

Probably the thing to look at for growth is the Assets under Management (AUM). This has been growing lately but not strongly. The growth for the past 5 and 10 years is 3.6% and 1.7% per year. The AUM grew by 6.2% in 2016 and is expected to grow by 9% this year.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.40, 12.23 and 16.06. The corresponding 10 year values are 12.13, 14.52 and 16.66. The corresponding historical values are 11.49, 17.74 and 18.30. The current P/E Ratio is 12.39 based on a stock price of $40.01 and 2017 EPS estimate of 3.23. This stock price testing suggests that the stock price is reasonable and below the median.

I get a Graham Price of $37.50. The 10 year low, median and high median Price/Graham Price Ratios are 1.11, 1.26 and 1.47. The current P/GP Ratio is 1.07 based on a stock price of $40.01. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 2.47. The current P/B Ratio is 2.07 a value some 16% lower. The current P/B Ratio is based on a Stock Price of $40.01 and BVPS of $19.35. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a historical median dividend yield is 3.37%. The current dividend yield is 5.62% based on dividends of $2.25 and a stock price of $40.01. The current dividend yield is some 67% above 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 Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 month stock price consensus is $43.22. This implies a total return of 13.65% with 8.02% from capital gains and 5.62% from dividends based on a stock price of $40.01.

Sarah Corning on Ozark Times talks about some interesting indicators on this stock. The Piotroski F-Score for this stock is 6 where 9 indicates a high value stock and 1 a low value stock. Stephanie Bedard-Chateauneuf on Motley Fool says she prefers CI (TSX-CIX., OTC-CIFAF) to this stock. Bank On Insight writer on Seeking Alpha is not keen on this stock either.

This is a mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. IGM Financial Inc. is a member of the Power Financial Corporation group of companies. Its web site is here IGM Financial Inc.

The last stock I wrote about was about was Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more. The next stock I will write about will be Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more on Friday, June 9, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2017... learn more on Thursday, June 8, 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, June 6, 2017

Waste Connections Inc.

Thanks for all the well wishes. I am fine today. I am generally in good health because I exercise and walk a lot so I hope I stay that way.

Sound bite for Twitter and StockTwits is: In Waste Collection. This is considered to be an industrial services stock. It is in a business that will certainly go on in the future. It has been a profitable business. It has Buy ratings but I think it is expensive. Note that I go from Progressive Waste to Waste Connections in my analysis. See my spreadsheet on Waste Connections Inc.

I do not own this stock of Waste Connections Inc. (TSX-WCN, NYSE-WCN) but I used to own it as Progressive Waste Solutions. This big news, of course, is that there was a merger (or reverse takeover) between Waste Connections and Progressive Waste in the middle of 2016.

I first bought Progressive Waste in 2007 because TD Securities had a very favourable report on this stock and had it on it action buy lists. I had money because I had recently sold RIM. At that time it was an income fund. I sold my stake in this company in May 2016 just before the merger with Waste Connections. I find owning US companies a pain because you get dividends in US$ and you never know exactly what you will get.

This last time I reviewed this company it was called Progressive Waste Solutions Ltd (TSX-BIN, NYSE-BIN). The company merged with Waste Connections Inc. (TSX-WCN, NYSE-WCN). See the announcement by Waste Connections Inc. My spreadsheet and my review are going from Progressive Waste to Waste Connections.

I had done well on this stock. Over the 8.5 years I own Progressive Waste I earned 10.71% per year with 8.30% from capital gains and 2.41% from dividends. If I had kept my shares I would have earned a capital gain of 12.32% per year. Dividends are lower with the merger, but say I got 2% in dividends, that would be a total return of 14.32% per year over 9.6 years. However, I would have ended up with an odd number of shares as Progressive Waste shareholders got .4815 shares for each share owned.

For Canadians dividends have been decreased by around 30% in 2016 in preparation for the merger. Under Progressive Waste, dividends in the past have gone down as well as up. As far as I can see Progressive Waste went public in 2002 as BFI Canada Income Fund and paid dividends since 2002, which is for 15 years.

According to their site, Waste Connections started paying dividends at the end of 2010. They seemed to have always paid a lower yield dividend with a 7 year median yield of 0.8% on the stock's closing price, compared to Progressive Waste which has a 2.38% median yield on the stock's closing price.

The dividend growth on Waste Connection for the past 5 years was at 14.3% per year. The 5 year dividend growth for Progressive Waste was 5.7% before the decrease to merge with Waste Connection. However, I do not like stocks that have yields below 1% because it takes so long to get a really good yield on your original cost of your stock.

For the past 5 and 10 years with dividends included, Progressive Waste total return is at 22.62% and 9.05% per year. The total return for the past 5 and 10 years for Waste Connection is at 19.44% and 6.54% per year. For the past 5 and 10 years the capital gains for Progressive Waste was at 20.54% and 6.35% per year.

For the past 5 and 10 years the capital gains for Waste Connection was 18.85% and 6.22% per year. So, the total return and the capital gains were slightly higher for Progressive Waste than for Waste Connection. Going forward you can expect the company to probably behave as Waste Connections did.

After the merger in 2016, debt ratios seem better. The Liquidity Ratio for 2016 is 1.20. Prior under Progressive Waste the 5 year median Liquidity Ratio was 1.00 and was just 0.92 in 2015. After the merger in 2016 the Debt Ratio for 2016 is 2.02. Under Progressive Waste the 5 year median was 1.58 and the one for 2015 was 1.53.

The 5 year low, median and high median Price/Earnings per Share Ratio for Progressive Waste were 19.54, 23.66 and 27.77. The 10 year values were 19.31, 52.21 and 28.11. The historical values are 22.26, 27.79 and 33.32. The current P/E Ratio is 42.11 based on a stock price of $130.80 and 2017 EPS estimate of $3.11 CDN$. I have no figures for Waste Connection, but in any case a P/E Ratio of 42.11 is high. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $55.09 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.29, 1.48 and 1.74. The current P/GP Ratio is 2.37 based on a stock price of $130.80 CDN$. This stock price testing suggests that the stock price is relatively expensive. I do not have values for Waste Connection, but on an absolute basis a P/GP Ratio of 2.37 is very high.

I get a 10 year median Price/Book Value per Share of $2.01. The current P/B Ratio is 3.01 based on BVPS of $43.43 CDN$ and a stock price of $130.80 CDN$. The current P/B Ratio is some 50% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. I do not have values for Waste Connection, but on an absolute basis a P.B Ratio of 3.01 is high.

I get a P/S Ratio of 1.44 US$. The current P/S Ratio is 3.77 US$ based on Revenue of $4518M US$, Revenue per Share of $25.74 US$ and a stock price of $96.92 US$. The current P/S Ratio is some 161% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. You will get similar results in CDN$. I do not have values for Waste Connection, but on an absolute basis a P/B Ratio of 3.77 is high.

There does not seem to be many analysts following this stock. There are 2 analysts that I can find and they both give the stock a Buy Recommendations with a consensus recommendation of a Buy. The 12 months consensus stock price is $96.50 US$. This implies a total return of 0.31% with a capital loss of 0.43% and dividends of 0.74%. You have to wonder the why of the Buy recommendations. The answer could be that the stock has recently had great upward momentum.

Zacks Equity Research showing on NASDAQ shows that they rank this stock as a Buy and feel that they have further room for growth of 15.8% per year over the long term. Charlotte Bryant on Chaffey Breeze says that Royal Bank lifted their 12 month stock price of $125.00 CDN$ and give the stock an Outperform (Buy) Rating. There are no 2017 comments on this stock, but in the past analysts on Stock Chase thought this was a good stock in a good business.

Waste Connections is an integrated solid waste services company that provides waste collection, transfer, disposal and recycling services in mostly exclusive and secondary markets in the U.S. and Canada. Its web site is here Waste Connections Inc.

The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more. The next stock I will write about will be IGM Financial Inc. (TSX-IGM, OTC-IGIFF)... learn more on Wednesday, June 7, 2017 around 5 pm. Today on my other blog I will write about Dividend Stocks June 2017... learn more on Tuesday, June 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, June 5, 2017

No Blog Today

This is not how I expected to spend my day. I had some chest pains in the morning and was in the emergency department all day long. It was not my heart and they do not know what caused my chest pains. I just got home and it is 7 pm so no blog today.

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, June 2, 2017

Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Payloan Co. The company is doing fine. I just do not care to invest in such companies. The stock price could currently be considered to be relatively expensive. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named.

I can see the argument that if this sort of company is not allowed people would go to loan sharks and be worse off. The argument is probably valid. However, that does not mean I should invest in such a company. There are lots to invest in without investing in Goeasy.

If you want to know why I object to invest in this company see this article on CBC. They are like payday loans and the loans are just below the legal limited of 60%. Did you know the legal limit for loans was 60%? And that legal limit does not include the loan-protection insurance payment.

Dividend yield is moderate with low to moderate increases. The current dividend yield is 2.33% with 5 year median of 2.25% and a historical median of 2.33%. The 5 and 10 year growth in dividends is at 5.7% and 8% per year. The last increase was in 2017 and was for a whopping 44%. The reason for the low growth over the past 5 years is that there was no dividend increases between 2010 and 2014 inclusive.

The company is growing. Since the number of shares is growing, you need to look at per share values for growth. The revenue per share growth over the past 5 and 10 years is at 10.4% and 8.3% per year. The EPS growth is at 22.5% and 10% per year over the past 5 and 10 years. The growth for cash flow per share is at 11.3% and 8.3% per year.

The Return on Equity has been above 10% each year for the past 5 years but only 7 out of the past 10 years. The 5 year median ROE is 12.5% with 15.8% ROE for 2016.

The 5 year low, median and high median Price/Earnings per Share Ratios are 8.85, 11.28 and 13.70. The 10 year values are 10.14, 13.01 and 16.66. The historical values are 10.71, 14.50 and 18.28. The current P/E Ratio is 11.00 based on a stock price of $30.91 and 2017 EPS estimate of $2.81. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $31.08. The 10 year low, median and high median Price/Graham Price Ratios are 0.64, 0.85 and 1.07. The current P/GP Ratio is 0.99 based on a stock price of $30.91. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year Price/Book Value per Share Ratio is 1.37. The current P/B Ratio is 2.02 based on BVPS of $15.28 and a stock price of $30.91. The current ratio is some 48% higher than the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 2.33%. This is based on dividends of $0.72 and a stock price of $30.91. The historical dividend yield is 2.33. This stock price testing suggests that the stock price is relatively reasonable with a price around the median. (Note that the dividends have just increased by a huge 44% and this would greatly affect this test.

The 10 year P/S Ratio is 0.81. The current P/S Ratio is 1.05 a value some 30% higher. The current ratio is based on 2017 Revenue of $393M, Revenue per Share of $29.49 and a stock price of $30.91. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations I find Strong Buy and Buy recommendations. There are more Buy recommendations, so the consensus recommendation is a Buy. The 12 months stock price consensus is $43.50. This implies a total return of 43.06% with 40.73% from capital gains and 2.33% from dividends. This is based on a current price of $30.91.

An article posted on SmallCap Power says that Goeasy is doing well and is being unfairly painted by the Home Capital Group brush. An article on DARC News takes a look at yields and Technicals for this stock. Daniel Jordon on Sports Perspectives talks about Raymond James Financial increasing this company's target price from $36.00 to $41.00. See what analysts are saying about this company on Stock Chase. They think it is growing well.

Goeasy Ltd. is the leading full service provider of goods and alternative financial services. Today, Goeasy Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. Its web site is here Goeasy Ltd.

The last stock I wrote about was about was Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more. The next stock I will write about will be Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more on Monday, June 5, 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, May 31, 2017

Husky Energy Inc.

Sound bite for Twitter and StockTwits is: Cheap energy company. On the best types of tests this stock looks cheap. This company may be a good one to buy if you are looking at energy companies. See my spreadsheet on Husky Energy Inc.

I do not own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF) but I used to. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 and had a total loss of 4.53% per year. I had a capital loss of 8.34% per year with dividends of 3.81% per year. My capital loss was 82.5% and my total loss was 60.9%.

After the company cut the dividends in 2008, they were flat until 2016 when they were cut again and then totally eliminated in 2017. The dividends I received cut my losses and this can be the value of dividends. A number of analysts feel that dividends will be restored in 2017. This company is into oil and gas so I do not think you could ever count on steady dividends.

Dividend will probably continue to go up and down or be suspended depending on how the company is doing. The company has also given out stock dividends in lieu of cash dividends.

The debt ratios are mostly fine. However, I should mention that the company does depend on cash flow for the Liquidity Ratio. For example in 2015 the Liquidity Ratio was just 0.76. With cash flow after dividends it became 1.43. In 2016 the Liquidity Ratio was 1.35. With cash flows after dividends it was 1.88. The 5 year median Liquidity Ratio is 1.18. With cash flow after dividends the 5 year median becomes 1.88.

The book value has also floated up and down. The book value per share is down by 1.8% and up by 3.95% over the past 5 and 10 years. The company has had Return on Equity above 10%, 4 times in the past 10 years and once over the past 5 years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 13.78, 16.54 and 18.22. The 10 year values are 12.34, 14.53 and 16.18. The historical values are 9.65, 11.94 and 14.16. The current P/E Ratio is 27.37 based on a stock price of $16.15 and 2017 EPS estimate of $0.59. This stock price testing suggests that the stock price is relatively expensive. However, the P/E Ratio test is not always a good test.

I get a Graham Price of $14.85. The 10 year low, median and high median Price/Graham Price Ratios are 0.85, 10.5 and 1.30. The current P/GP Ratio is 1.09 based on a stock price of $16.15. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Book Value per Share Ratio is 1.48. The current P/B Ratio is 0.97 based on a stock price of $16.15 and BVPS of $16.62. The current P/B Ratio is some 34.5% lower than the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. Also on an absolute basis a P/B Ratio of below 1.00 is saying the stock is selling below its theoretical breakup price and is therefore cheap.

The P/S Ratio is 1.30. The current P/S Ratio is 0.89 based on 2017 revenue estimate of $18,148M, revenue per share of $18.05 and a stock price of $16.15. The current P/S Ratio is some 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus would be a Buy with a 12 month stock price consensus of $18.50. This implies a total return of 14.55%.

Claudia Cattaneo writes in the Financial Post about Husky doing the next big project in Newfoundland. Renee Jackson on The Cerbat Gem talks about recent ratings for this company. For example Scotiabank raised their 12 month stock from $17.00 to $19.00 recently. Muvija.M and Swetha Gopinath from Reuters report on BNN that this company beat the estimates for the first quarter. See what analysts are saying about this stock on Stock Chase. The analysts have mixed views, like the analysts' recommendations.

This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). It is listed under TSX Energy Index. Its web site is here Husky Energy Inc.

The last stock I wrote about was about was MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more on Friday, June 2, 2017 around 5 pm.. Tomorrow on my other blog I will write about Dividend Investing... learn more on Thursday, June 1, 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, May 29, 2017

MacDonald, Dettwiler & Associates

Sound bite for Twitter and StockTwits is: Merger with DigitalGlobe. This could means that this is possibly another stock I will have to replace. It could be a reverse merger like Waste Connections was. The deal is to close in the second half of 2017. Price seems relatively cheap at present but takeover/merger with DigitalGlobe is an unknown. Price momentum is downward. See my spreadsheet on MacDonald, Dettwiler & Associates, but it is not updated as there is really not point in that.

I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends.

The first thing that I noticed is that the stock price of the company is falling. It does not seem to positive about the merger or buy-out or whatever you want to call the deal with DigitalGlobe. This stock has been falling since August of last year and for this year it has basically just gone south. However a research note I read said that they thought that the acquisition of DigitalGlobe will be a positive potential catalyst. But they also called the market for commercial satellites challenging.

MDA's website is currently unavailable. The site does not say why. However, there are a number of places to pick up annual reports and other information so I do not need their site for this. But you have to sort of wonder what is going on when they say that their site is temporarily unavailable.

The year 2016 and the start of 2017 were not great for this company. Revenue and earnings are down but not by a lot. Revenue for 2016 was down by 2.5% and the 12 month period to the end of the first quarter compared to last year is down by 3.3%. Cash Flow was better in 2016, but only increased by 0.4% in 2016. Cash Flow for 12 months period to the end of the first quarter is down by 14%.

As far as dividends go, they only started to pay them in 2012 and there has been only one increase in dividends and that was in 2015. The Dividend Payout Ratio for 2016 for EPS was 40% but it is expected to be 62% in 2017. The 5 year median value is 47%. The DPR for 2016 for CFPS was 15% and is expected to be around 23% in 2017.

The Liquidity Ratio for this company is quite low being only at 0.86 in 2016. If you add in cash flow after dividends it is only 0.98. When this ratio is below 1.00, it means that the current assets cannot cover the currently liabilities. The preferred ratio is 1.50 or better. The rest of the debt ratios are fine.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.77, 22.50 and 26.10. The corresponding 10 year values are 17.56, 21.80 and 25.39. The historical ones are 14.22, 22.31 and 26.10. The current P/E Ratio is 26.52 based on a stock price of $62.85 and 2017 EPS estimate of 2.37. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham price of $40.96. The 10 year low, median and high median Price/Graham Price Ratios are 1.54, 1.86 and 2.28. The current P/GP Ratio is 1.53 based on a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.51. The current P/B Ratio is 2.00 based on a stock price of $62.85 and BVPS of $31.45. The current P/B Ratio is some 43% below the 10 year median. The 10 year median is a little high at 3.51, but 2.00 is quite reasonable. This stock price testing suggests that the stock price is relatively cheap.

I get a 5 year median dividend yield of 1.85%. The current dividend yield at 2.35% is some 27% higher. The current dividend yield is based on dividends of $1.48 and a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/S Ratio of 1.47. The current P/S Ratio is 1.14 based on 2017 Revenue estimate of $2,003M, Revenue per Share of $55.02 and a stock price of $62.85. The current P/S Ratio is some 22% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Buy and Hold Recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price is $83.18. This implies a total return 34.70% with 32.35% from capital gains and 2.35% from dividends based on a current price of $62.85.

Steve Symington on Motley Fool talks about MacDonald, Dettwiler & Associates impending merger with DigitalGlobe (NYSE:DGI). A Reuters report in the Financial Post says that MDA is buying DGI and will list on the NYSE as well as the TSX. Wayne Landers on Sports Perspectives talks about TD Securities reducing this company's target price from $86.00 to $83.00.

MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more. The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Wednesday, May 31, 2017 around 5 pm. Tomorrow on my other blog I will write about Ensign and Mullen... learn more on Tuesday, May 30, 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, May 26, 2017

Ensign Energy Services

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I do not like dividend stocks paying dividends that they cannot afford. Therefore I am still happy with my switch from this stock to Mullen. The stock price is cheap, but I think that it is cheap for a reason. See my spreadsheet on Ensign Energy Services.

I do not own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post here. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply.

The main thing I do not like about this company is their paying of dividends that they cannot afford. Both last year and this year they had an earnings loss, but they continue to pay dividends. Analyst expect two more years of losses before it can earn a profit. Analysts expect that the 2017 and 2018 will be earnings loss years. They expect positive earnings in 2019 of $0.20. This is still way below current dividends.

On the other had they can still fund their dividends through cash flow, but analyst feel that anything over 40% is too high. The Dividend Payout Ratio for Cash Flow in 2016 was 43%. The 5 year median is still low at 19%, but the one for 2016 is high. They expect that dividends will continue to be covered by CFPS in the 30% range for the next couple of years.

The other thing I do not like is the Liquidity Ratio which for 2016 was 0.96. When you add in cash flow after dividends the ratio is still low at 1.26. I like this to be at least 1.50. The 5 year median for this ratio is 1.03, but this ratio has fluctuated a lot as it was 1.77 last year. The other debt ratios are fine.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.26, 10.92 and 12.58. The 10 year values are 9.20, 11.86 and 15.01. The historical ones are 8.86, 12.41 and 16.67. They are quite similar. The current ones are probably lower due to the last two years of EPS losses. The current P/E Ratio is -9.38. The P/E Ratio for 2018 is -17.13. We have a positive one of 34.25 for 2019, but I think that two years hence in estimates is a long stretch. So let's move on.

I get a Graham Price of $7.23. The 10 year low, median and high median Price/Graham Price Ratios are 0.67, 0.99 and 1.26. The current P/GP Ratio is 0.95 based on a stock price of $6.85. 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 1.33. The current P/B Ratio is 0.59 based on BVPS of $11.63 and a stock price of $6.85. The current P/B Ratio is 56% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. Also when the P/B Ratio is below 1.00 the company is theoretically selling below its breakup value. This is also a positive point.

I get a historical median dividend yield of 1.80%. The current dividend yield is 7.01% based on dividends of $0.48 and a stock price of $6.85. The current dividend yield is some 289% 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 they are all over the place with Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 months stock price is $9.30. This implies a total return of 42.77% with 7.01% from dividends and 35.77% from capital gains based on a stock price of $6.85.

A JCTY Staff Writer at JCTY News says that this company's Value Composite score is 33. It is closer to being undervalued than overvalued. Felix Olson on Simply Wall Street talks about debt levels at this company. I am concerned about lack of coverage of current liability by current assets. However, it does have enough cash flow. See what analysts are saying about this stock at Stock Chase. It is not a favourite.

Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy Services.

The last stock I wrote about was about was Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more. The next stock I will write about will be MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more on Monday, May 29, 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, May 24, 2017

Hardwoods Distribution Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Materials Stock. Stock price is probably reasonable to expensive. It is certainly not cheap. It has done well for shareholders over the past 5 years. See my spreadsheet on Hardwoods Distribution Inc.

I do not own this stock of Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed and had are being bought out. This was one of the suggestions. This stock was certainly a lot easier to do a spreadsheet and analysis than Pizza Pizza was.

As far as dividends go, this company has increased them, decreased them and suspended them and they have only been around since 2004. They also started out as an income trust company and changed to a corporation in 2011. A lot of the old income trust companies have had a hard time switching to corporations as far as dividends are concerned. When they are corporations the dividends are limited by the earnings, but this was not true for income trust companies.

Since dividends were restarted in 2012, the Dividend Payout Ratios for EPS has been very good. The DPR for EPS for 2016 is 12.2% with 5 year running payout at 18.7%. The DPR for CFPS for 2016 is at 10.9% with the 5 year running payout at $10.5%. There is a tension between giving shareholders a return in dividends and keeping money for reinvestment in the business. At the current low DPR, investment in the business should be very possible.

The debt ratios for 2016 are good. The Liquidity Ratio for 2016 is 1.83 with a 5 year median of 2.77. The Debt Ratio is 2.56 for 2016 with a 5 year median of 3.28. The Leverage and Debt/Equity Ratios are also good with the ones for 2016 at 1.64 and 0.64 respectively.

For Return on Equity, it has only been below 10% once in the past 5 years and that is 5 years ago. The ROE for 2016 was 10.6% with the 5 yea median at 12.9%. The ROE on Comprehensive Income for 2016 was 10.4% with a 5 year median of 18.1%.

This company has done well over the past 5 years with Revenues up 30% per year, Revenue per Share up 20.9% per year, EPS up 26.23% per year and CFPS up 40.3% per year. Also the total return has been very good with total return to date at 32.6% per year with dividends of 2.2% per year and capital gain at 30.4% per year.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.73, 12.55 and 14.74. The 10 year corresponding values are 7.95, 10.55 and 13.10. The historical values are 9.18, 10.78 and 13.98. The current P/E Ratio is 11.84 based on a stock price $19.42 and 2017 EPS estimate of $1.64. This stock price testing suggest that the stock price is relatively reasonable and around the median.

I get a Graham Price of $19.97. The 10 year low, median and high median Price/Graham Price Ratios are 0.55, 0.73 and 0.91. The current P/GP Ratio is 0.97 based on a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that any P/GP Ratio of 1.00 or lower is considered a very good price when buying stock.

I get a 10 year Price/Book Value per Share Ratio of 1.00. The current P/B Ratio is 1.80 a value some 79% higher. The current P/B Ratio is based on BVPS of $10.80 and a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that a P/B Ratio of 1.50 (and below) is considered a good P/B Ratio when buying stock.

Since this was an old income trust stock, the dividend yield test may not be a good one. The 5 year median dividend yield is 1.56%. The current dividend yield is 1.29% a value some 17% lower. The current dividend yield is based on dividends of $0.25 and a stock price of $19.42. This testing suggests that the stock price is reasonable, but above the median.

The 10 year median P/S Ratio is 0.28. The current P/S Ratio is 0.39 a value some 40% higher. The P/S Ratio is based on a stock price of $19.42 and 2017 Revenue estimate of $1051M and Revenue per Share of $49.20. This stock price testing suggests that the stock price is relatively expensive.

One of the problems with this stock is that few analysts follow it (there are 4) and they give little in the way of estimates. The 4 analysts that follow this stock give it a rating of Buy, so the consensus recommendation is a Buy. The 12 month stock price consensus is $25.17. This implies a total return of 30.90% with 29.61% from capital gains and $1.29% from dividends.

The staff at Dasher Business Review give some technical analysis of this stock. They the company's VC score is 41 where 0 is an undervalued company and 100 is an overvalued company. David Glaser on Sports Perspectives says that the National Bank has increased the second quarterly earnings for this company from $0.42 to $0.44. On the Buckeye Business Review site this company is given top score for stability and growth. See what analysts are saying about this company on Stock Chase. They think it is a good company.

Hardwoods Distribution Inc. is a Canada-based company engaged in the wholesale distribution of hardwood lumber and related sheet good and specialty products. The Company operates through its Canada and United States segments. Its web site is here Hardwoods Distribution Inc.

The last stock I wrote about was about was Mullen Group (TSX-MTL, OTC-MLLGF)... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more on Friday, May 26, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks... learn more on Thursday, May 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.