acquisition
TD BANK $54.90 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $100.5 billion; TSINetwork Rating: Above Average; Dividend yield: 3.7%; www.td.com) is Canada’s largest bank, with $1.03 trillion of assets. It also operates more branches in the U.S. than Canada (1,302 vs. 1,165) and owns 40.72% of TD Ameritrade (New York symbol AMTD), a leading online brokerage. Excluding one-time items, TD’s earnings per share rose 4.6% in its fiscal second quarter ended April 30, 2015, to $1.14 from $1.09 a year earlier. Revenue gained 4.4%, to $7.8 billion from $7.4 billion, as low interest rates continue to spur loan demand. The bank’s loan-loss provisions fell 4.3%, to $375 million from $392 million, because more U.S. credit card customers are repaying their loans on time....
CHEMTRADE LOGISTICS INCOME FUND $19.98 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics .com; Units outstanding: 68.6 million; Market cap: $1.4 billion; Dividend yield: 6.0%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base metal processors, whose operations create sulphur, acid and other by-products. Chemtrade converts these substances into useful chemicals, like sulphuric acid.
In the three months ended March 31, 2015, the company’s revenue rose 22.5%, to $326.0 million from $266.1 million a year earlier.
Big acquisition working out well
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In the three months ended March 31, 2015, the company’s revenue rose 22.5%, to $326.0 million from $266.1 million a year earlier.
Big acquisition working out well
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WYNDHAM WORLDWIDE $84.04 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 120.0 million; Market cap: $10.1 billion; Dividend yield: 2.0%) is one of the world’s largest hospitality companies, with 7,670 franchised hotels worldwide.
In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares.
The company has just bought Vacation Palm Springs, which manages more than 450 upscale vacation properties, for an undisclosed amount. This is Wyndham’s first acquisition in California.
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In addition to hotels, Wyndham manages vacation resorts, rental properties, luxury clubs and time-shares.
The company has just bought Vacation Palm Springs, which manages more than 450 upscale vacation properties, for an undisclosed amount. This is Wyndham’s first acquisition in California.
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RUSSEL METALS $23.29 (Toronto symbol RUS; TSINetwork Rating: Speculative)(905-819-7777; www.russelmetals.com; Shares outstanding: 61.7 million; Market cap: $1.4 billion; Dividend yield: 6.5%) has completed its acquisition of Western Fiberglass Pipe Sales for an undisclosed amount.
Western Fiberglass is a leading distributor of fibreglass pipe for the oil and gas industry. It serves Western Canada through offices in Estevan, Saskatchewan, and Red Deer, Alberta.
The acquisition will add just $30 million to Russel’s annual revenue of $3.9 billion. However, it lets it offer oil and gas customers fibreglass pipe as an alternative to steel. The company feels this could help them save on installation costs and maintenance while improving flow capacity and increasing service life.
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Western Fiberglass is a leading distributor of fibreglass pipe for the oil and gas industry. It serves Western Canada through offices in Estevan, Saskatchewan, and Red Deer, Alberta.
The acquisition will add just $30 million to Russel’s annual revenue of $3.9 billion. However, it lets it offer oil and gas customers fibreglass pipe as an alternative to steel. The company feels this could help them save on installation costs and maintenance while improving flow capacity and increasing service life.
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AGT FOOD & INGREDIENTS $32.17 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (306-525- 4490; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $755.8 million; Dividend yield: 1.9%) has bought the assets of West Central Road & Rail for $22 million. The acquisition includes five bulk-loading sites in Saskatchewan.
Purchases like this are important because they help ensure that AGT can supply its manufacturing plants and continue its growth.
AGT Food & Ingredients is still a buy.
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Purchases like this are important because they help ensure that AGT can supply its manufacturing plants and continue its growth.
AGT Food & Ingredients is still a buy.
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LEON’S FURNITURE LTD. $15.18 (Toronto symbol LNF; TSINetwork Rating: Average) (416-243-7880; www.leons.ca; Shares outstanding: 71.1 million; Market cap: $1.1 billion; Dividend yield: 2.6%) has steadily opened new stores, growing from 27 in 2003 to 80 today.
However, the company more than quadrupled in size overnight with its March 2013 purchase of its main rival, The Brick, for $700 million. The Brick has 220 locations across Canada; the chains continue to operate separately.
In the three months ended March 31, 2015, the company’s sales fell slightly, to $423.0 million from $426.0 million a year earlier. On a same-store basis, sales declined 0.1%.
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However, the company more than quadrupled in size overnight with its March 2013 purchase of its main rival, The Brick, for $700 million. The Brick has 220 locations across Canada; the chains continue to operate separately.
In the three months ended March 31, 2015, the company’s sales fell slightly, to $423.0 million from $426.0 million a year earlier. On a same-store basis, sales declined 0.1%.
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ACI WORLDWIDE $25.19 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative)(402-390-7600; www.tsainc.com; Shares outstanding: 116.7 million; Market cap: $3.0 billion; No dividends paid) makes software for processing transactions involving credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank payments. The company’s products also help cut fraud. Clients include leading global retailers, plus two-thirds of the world’s 100 largest banks.
ACI has made a series of acquisitions in recent years. In November 2013, it paid $109 million for Official Payments Holdings, which processes 20 million payments totalling over $9 billion a year. It also added Retail Decisions (ReD) for $205 million in August 2014. ReD is an e-commerce and fraud-prevention firm whose software serves the payments industry.
In the three months ended March 31, 2015, the company’s revenue rose 5.1% to $232.8 million from $221.5 million a year earlier. ACI typically has higher sales and profits in the last half of each year, which is the busiest period in its customers’ purchasing cycle.
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ACI has made a series of acquisitions in recent years. In November 2013, it paid $109 million for Official Payments Holdings, which processes 20 million payments totalling over $9 billion a year. It also added Retail Decisions (ReD) for $205 million in August 2014. ReD is an e-commerce and fraud-prevention firm whose software serves the payments industry.
In the three months ended March 31, 2015, the company’s revenue rose 5.1% to $232.8 million from $221.5 million a year earlier. ACI typically has higher sales and profits in the last half of each year, which is the busiest period in its customers’ purchasing cycle.
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MENTOR GRAPHICS CORP., $26.11, symbol MENT on Nasdaq, makes technology for improving the design of electronic products and speeding up their development. For example, Mentor’s software lets automakers use less wiring in a car, identify potential safety issues and minimize electromagnetic effects on sensitive components. In the three months ended April 30, 2015, the company’s revenue rose 7.9%, to $272.1 million from $252.2 million a year earlier. Excluding one-time items, earnings per share jumped sharply, to $0.28 from $0.11, far exceeding the consensus estimate of $0.18. Sales to the auto industry were very strong, and the company continues to cut costs....
Replying to an investor seeking stock picks to buy and hold, we assess the long-term prospects of America’s biggest grocery store operator.
MCKESSON CORP. $239 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 231.6 million; Market cap: $55.4 billion; Price-to-sales ratio: 0.3; Dividend yield: 0.4%; TSINetwork Rating: Above Average; www.mckesson .com) paid $4.5 billion for 75.4% of Celesio AG in February 2014. Celesio is a German firm that distributes prescription drugs in Europe and Brazil. McKesson’s stake now stands at 76.0%. This acquisition increased McKesson’s revenue by 30.3% in its 2015 fiscal year, which ended March 31, 2015, to $179.0 billion from $137.4 billion in fiscal 2014. Excluding unusual items, earnings per share rose 29.2%, to $11.11 from $8.60. The company now expects to earn $12.20 to $12.70 a share in fiscal 2016, and the stock trades at 19.2 times the midpoint of that range. That’s a somewhat high p/e ratio, particularly if Celesio fails to meet expectations. As well, the upcoming launch of cheaper hepatitis C drugs could slow McKesson’s revenue growth....