dividends paid
RESEARCH IN MOTION INC. $7.56 (Toronto symbol RIM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.2 million; Market cap: $4.0 billion; Price-to-sales ratio: 0.2; No dividends paid; TSINetwork Rating: Above Average; www.rim.com) has launched a version of its PlayBook tablet computer that can run on Long-Term Evolution (LTE) wireless networks, which are up to five times faster than current networks. Until now, the PlayBook used slower Wi-Fi technology to access the Internet. These upgrades will help the PlayBook compete with other LTE-capable tablets. However, RIM’s earnings will remain under pressure until it launches smartphones that use its new BlackBerry 10 operating system. The company expects to start selling these phones in early 2013. RIM is a hold, but only for aggressive investors....
RUBY TUESDAY, INC. $6.76 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 63.8 million; Market cap: $429.3 million; No dividends paid) owns 714 casual dining restaurants in the U.S. Franchisees operate 36 outlets in the U.S. and 43 overseas.
In the three months ended June 5, 2012, Ruby Tuesday’s sales rose 2.9%, to $363.2 million from $353.0 million a year earlier. However, same-restaurant sales fell 4.6%, mostly due to stiff competition from other chains.
Ruby Tuesday has developed a number of new restaurant concepts, including Marlin & Ray’s seafood restaurants; Truffles, an upscale cafe; and Lime Fresh Mexican Grills. The company feels these new layouts will help it compete in certain towns and cities. It’s now converting underperforming stores to these banners, and building new ones.
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In the three months ended June 5, 2012, Ruby Tuesday’s sales rose 2.9%, to $363.2 million from $353.0 million a year earlier. However, same-restaurant sales fell 4.6%, mostly due to stiff competition from other chains.
Ruby Tuesday has developed a number of new restaurant concepts, including Marlin & Ray’s seafood restaurants; Truffles, an upscale cafe; and Lime Fresh Mexican Grills. The company feels these new layouts will help it compete in certain towns and cities. It’s now converting underperforming stores to these banners, and building new ones.
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DOMINO’S PIZZA $34.22 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 56.7 million; Market cap: $1.9 billion; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. It operates 9,924 outlets in the U.S. and over 70 in other countries. Franchisees run most of these stores.
In the quarter ended June 17, 2012, the company’s earnings per share rose 17.5%, to $0.47 from $0.40 a year earlier. Costs fell, including a 12% drop in cheese prices.
Sales declined 2.3%, to $376.1 million from $384.9 million. That’s mainly because of lower sales of ingredients, including cheese, to franchisees. Same-store sales rose 5.7% internationally and 1.7% in the U.S.
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In the quarter ended June 17, 2012, the company’s earnings per share rose 17.5%, to $0.47 from $0.40 a year earlier. Costs fell, including a 12% drop in cheese prices.
Sales declined 2.3%, to $376.1 million from $384.9 million. That’s mainly because of lower sales of ingredients, including cheese, to franchisees. Same-store sales rose 5.7% internationally and 1.7% in the U.S.
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BIRCHCLIFF ENERGY $7.00 (Toronto symbol BIR; TSINetwork Rating: Speculative) (403-261-6401; www.birchcliffenergy.com; Units outstanding: 141.4 million; Market cap: $989.8 million; No dividends paid) develops, produces and explores for oil and natural gas, mainly in the Peace River Arch area near the Alberta/B.C. border. About 75% of Birchcliff’s production is natural gas. The remaining 25% is oil.
Prominent Toronto investor Seymour Schulich is the company’s largest shareholder; he owns about 28% of its outstanding shares.
In the three months ended June 30, 2012, Birchcliff’s production rose 27.2%, to 22,039 barrels of oil equivalent per day (including natural gas) from 17,324 barrels a year earlier.
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Prominent Toronto investor Seymour Schulich is the company’s largest shareholder; he owns about 28% of its outstanding shares.
In the three months ended June 30, 2012, Birchcliff’s production rose 27.2%, to 22,039 barrels of oil equivalent per day (including natural gas) from 17,324 barrels a year earlier.
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AEROPOSTALE INC. $13.63 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 81.3 million; Market cap: $1.1 billion; No dividends paid) is down almost 32% since early August after it lowered its forecast for its fiscal 2012 second quarter.
The company now expects to break even, down from its previous forecast of a profit of $0.03 to $0.05 a share. Consensus estimates were for a $0.06-a-share profit.
Aeropostale operates in a highly competitive market. That means it has to constantly refresh its clothing lines with popular new colours and styles. It should be able to repeat its past success at attracting customers, but sales may remain weak in the near term.
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The company now expects to break even, down from its previous forecast of a profit of $0.03 to $0.05 a share. Consensus estimates were for a $0.06-a-share profit.
Aeropostale operates in a highly competitive market. That means it has to constantly refresh its clothing lines with popular new colours and styles. It should be able to repeat its past success at attracting customers, but sales may remain weak in the near term.
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EBAY INC. $43 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.3 billion; Market cap: $55.9 billion; Price-to-sales ratio: 4.3; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) gets half of its revenue from its auction websites, which now have 104.8 million users. The company gets a further 40% from processing online payments through its PayPal service. This business has huge potential, particularly as it expands to retail stores and handling payments from smartphones. The remaining 10% comes from GSI Commerce Inc., which helps businesses process orders from their websites. eBay paid $2.4 billion for GSI in June 2011....
IDEXX LABORATORIES INC. $88 (Nasdaq symbol IDXX; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 56.9 million; Market cap: $5.0 billion; Price-to-sales ratio: 3.9; No dividends paid; TSINetwork Rating: Average; www.idexx.com) gets 80% of its revenue by making equipment that veterinarians use to detect diseases in pets. The company also makes systems that detect contaminants in livestock and water (20% of revenue). It sells its products in over 100 countries. In the three months ended June 30, 2012, Idexx earned $51.3 million. That’s up 5.5% from $48.7 million a year earlier. The company spent $27.4 million on share repurchases in the latest quarter. Due to fewer shares outstanding, earnings per share rose 9.6%, to $0.91 from $0.83. Revenue rose 5.6%, to $335.6 million from $317.9 million....
Dividends don’t always get the respect they deserve, especially from beginning investors. A dividend stock’s yearly 2% or 3% or 5% yield barely seems worth mentioning alongside yearly capital gains of 10%, 20% or 30% or more. Yet dividends are far more reliable than capital gains. A stock that pays a dividend of $1 this year will probably do the same next year. It may even rise to $1.05....
DUNDEE CORP. $22 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 55.0 million; Market cap: $1.2 billion; Price-to-sales ratio: 1.7; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is a holding company with subsidiaries in wealth management, real estate, resources and agriculture.
In the three months ended March 31, 2012, Dundee earned $32.5 million, up 129.2% from $14.2 million a year earlier. Per share earnings jumped 211.8%, to $0.53 from $0.17, on fewer shares outstanding.
The increase resulted from much higher returns on the company’s various investments during the latest quarter: $21.6 million compared to just $2.3 million a year ago. Dundee’s revenue rose 11.4%, to $131.3 million from $117.8 million.
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In the three months ended March 31, 2012, Dundee earned $32.5 million, up 129.2% from $14.2 million a year earlier. Per share earnings jumped 211.8%, to $0.53 from $0.17, on fewer shares outstanding.
The increase resulted from much higher returns on the company’s various investments during the latest quarter: $21.6 million compared to just $2.3 million a year ago. Dundee’s revenue rose 11.4%, to $131.3 million from $117.8 million.
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PRECISION DRILLING CORP. $6.85 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 276.3 million; Market cap: $1.9 billion; Price-to-sales ratio: 0.9; No dividends paid since February 2009; TSINetwork Rating: Extra Risk; www.precisiondrilling.com) provides contract-drilling services to land-based oil and gas producers in Canada, the U.S. and Mexico. It had 344 rigs in service as of March 31, 2012.
The stock is down 45.6% from its recent peak of $12.60 in March 2012. That’s due to fears that falling oil and natural gas prices will hurt demand for Precision’s rigs. However, the company operates under long-term contracts that help shield it from volatile oil and gas prices. It has 122 rigs under contract in 2012 and 79 in 2013.
Precision can also conserve cash by putting off building new rigs if demand weakens. That’s why it recently cut its 2012 capital expenditures to $975 million from its earlier forecast of $1.1 billion.
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The stock is down 45.6% from its recent peak of $12.60 in March 2012. That’s due to fears that falling oil and natural gas prices will hurt demand for Precision’s rigs. However, the company operates under long-term contracts that help shield it from volatile oil and gas prices. It has 122 rigs under contract in 2012 and 79 in 2013.
Precision can also conserve cash by putting off building new rigs if demand weakens. That’s why it recently cut its 2012 capital expenditures to $975 million from its earlier forecast of $1.1 billion.
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