dividends paid
RUBY TUESDAY, INC. $7.97 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 63.8 million; Market cap: $508.5 million; No dividends paid) owns 742 casual dining restaurants in the U.S. Franchisees operate 43 outlets in the U.S. and 44 overseas. In the three months ended November 30, 2011, Ruby Tuesday’s sales rose 5.9%, to $307.5 million from $290.5 million a year earlier. However, same-restaurant sales fell 4.2%, mostly due to stiff competition from other chains, many of which spent heavily on TV advertising. Ruby Tuesday’s overall sales were helped by its new menu items and specials, including its lunch offer of soup, a salad bowl or garden bar, and garlic cheese biscuits starting at $5.99 to $6.99. Even so, the company lost $0.03 a share, compared to a profit of $0.07 a share a year earlier....
VITERRA $14.65 (Toronto symbol VT; TSINetwork Rating: Average) (1-866-569-4411; www.viterra.ca; Shares outstanding: 371.7 million; Market cap: $5.4 billion; Dividend yield: 1.0%) is up almost 31% since the company said it has received expressions of interest from unnamed parties interested in taking it over. The stock was our Pick of the Month in the last issue (March 2012) of Stock Pickers Digest. At the time, it was trading at $10.09. That’s a 45.2% gain in one month. Our view is that the company is well positioned to benefit from an expected rise in Canadian and Australian crop yields in 2012, as well as the end of the Canadian Wheat Board’s monopoly on western Canadian wheat and barley sales. In addition, its Australian operations’ sales to Asia continue to rise....
FIRSTSERVICE CORP. $30.90 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 28.6 million; Market cap: $883.7 million; No dividends paid) serves the following areas of the real estate market: commercial real estate, residential property management and property improvement.
In the three months ended December 31, 2011, the company’s revenue rose 7.8%, to $594.9 million from $552.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share rose 40.5%, to $0.52 from $0.37.
The company’s $316.4-million debt is a manageable 35.8% of its $883.7-million market cap.
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In the three months ended December 31, 2011, the company’s revenue rose 7.8%, to $594.9 million from $552.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share rose 40.5%, to $0.52 from $0.37.
The company’s $316.4-million debt is a manageable 35.8% of its $883.7-million market cap.
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DOMINO’S PIZZA $39.60 (New York symbol DPZ; TSINetwork Rating: Average) (734-930-3030; www.dominos.com; Shares outstanding: 57.8 million; Market cap: $2.3 billion; No dividends paid) is the world’s largest chain of pizza stores that offer takeout and delivery. The company operates 9,742 outlets in the U.S. and over 70 in other countries. Franchisees run most of these stores.
In the three months ended January 1, 2012, Domino’s earnings per share rose 33.3%, to $0.52 from $0.39. The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest.
Sales rose 4.4%, to $501.7 million from $480.0 million. U.S. same-store sales jumped 6.8%. International same-store sales rose 4.7%.
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In the three months ended January 1, 2012, Domino’s earnings per share rose 33.3%, to $0.52 from $0.39. The company paid more for food ingredients, but that was offset by lower costs for labour, rent and interest.
Sales rose 4.4%, to $501.7 million from $480.0 million. U.S. same-store sales jumped 6.8%. International same-store sales rose 4.7%.
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RUBY TUESDAY, INC. $7.97 (New York symbol RT; TSINetwork Rating: Speculative) (865-379-5700; www.rubytuesday.com; Shares outstanding: 63.8 million; Market cap: $508.5 million; No dividends paid) owns 742 casual dining restaurants in the U.S. Franchisees operate 43 outlets in the U.S. and 44 overseas.
In the three months ended November 30, 2011, Ruby Tuesday’s sales rose 5.9%, to $307.5 million from $290.5 million a year earlier. However, same-restaurant sales fell 4.2%, mostly due to stiff competition from other chains, many of which spent heavily on TV advertising.
Ruby Tuesday’s overall sales were helped by its new menu items and specials, including its lunch offer of soup, a salad bowl or garden bar, and garlic cheese biscuits starting at $5.99 to $6.99. Even so, the company lost $0.03 a share, compared to a profit of $0.07 a share a year earlier.
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In the three months ended November 30, 2011, Ruby Tuesday’s sales rose 5.9%, to $307.5 million from $290.5 million a year earlier. However, same-restaurant sales fell 4.2%, mostly due to stiff competition from other chains, many of which spent heavily on TV advertising.
Ruby Tuesday’s overall sales were helped by its new menu items and specials, including its lunch offer of soup, a salad bowl or garden bar, and garlic cheese biscuits starting at $5.99 to $6.99. Even so, the company lost $0.03 a share, compared to a profit of $0.07 a share a year earlier.
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GOODYEAR TIRE & RUBBER CO. $12.32 (New York symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 244.6 million; Market cap: $3.0 billion; No dividends paid) reports that its sales rose 12.0% in three months ended December 31, 2011, to a record $5.7 billion from $5.1 billion a year earlier.
The company earned $18 million, or $0.07 a share, compared with a loss of $177.0 million, or $0.73. Earnings benefited from the record sales and the company’s cost cuts, as well as a shift toward higher-priced tires.
Rising costs for raw materials, especially rubber, could limit Goodyear’s earnings growth in the near term. However, its long-term outlook is positive.
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The company earned $18 million, or $0.07 a share, compared with a loss of $177.0 million, or $0.73. Earnings benefited from the record sales and the company’s cost cuts, as well as a shift toward higher-priced tires.
Rising costs for raw materials, especially rubber, could limit Goodyear’s earnings growth in the near term. However, its long-term outlook is positive.
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INTUITIVE SURGICAL $528.20 (Nasdaq symbol ISRG; TSINetwork Rating: Average) (515-507-5000; www.intuitivesurgical.com; Shares outstanding: 39.3 million; Market cap: $20.8 billion; No dividends paid) makes the da Vinci, a computerized surgical system.
Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery, and helps cut a patient’s recovery time and post-operative discomfort. It also reduces scarring and infection risk.
In the three months ended December 31, 2011, Intuitive earned $151.2 million, or $3.86 a share. That’s up 24.8% from $121.2 million, or $3.10 a share, a year earlier. Revenue rose 27.6%, to $496.8 million from $389.3 million. Intuitive is debt-free, and holds cash of $2.2 billion, or $55.98 a share.
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Guided by a miniature camera connected to a 3-D monitor, surgeons use the da Vinci to operate by remotely manipulating tiny robotic arms. This process is safer and much less invasive than regular surgery, and helps cut a patient’s recovery time and post-operative discomfort. It also reduces scarring and infection risk.
In the three months ended December 31, 2011, Intuitive earned $151.2 million, or $3.86 a share. That’s up 24.8% from $121.2 million, or $3.10 a share, a year earlier. Revenue rose 27.6%, to $496.8 million from $389.3 million. Intuitive is debt-free, and holds cash of $2.2 billion, or $55.98 a share.
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TEMPUR-PEDIC $82.30 (New York symbol TPX; TSINetwork Rating: Speculative) (800-878-8889; www.tempurpedic.com; Shares outstanding: 63.8 million; Market cap: $5.3 billion; No dividends paid) makes and distributes Swedish mattresses and neck pillows made from its Tempur material, which conforms to the body to provide support and help alleviate pressure points.
Tempur-Pedic now sells its products in over 80 countries.
In the three months ended December 31, 2011, Tempur-Pedic’s sales rose 25.3%, to $366.8 million from $292.7 million. North American sales rose 26%, and international sales gained 25%.
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Tempur-Pedic now sells its products in over 80 countries.
In the three months ended December 31, 2011, Tempur-Pedic’s sales rose 25.3%, to $366.8 million from $292.7 million. North American sales rose 26%, and international sales gained 25%.
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TRANSCANADA CORP. $44 (Toronto symbol TRP; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 703.0 million; Market cap: $30.9 billion; Price-to-sales ratio: 3.3; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.transcanada.com) is expanding its Tamazunchale pipeline, which pumps natural gas from Mexico’s state-owned oil company to gas-fired power plants. This extension will cost $500 million U.S., which is roughly equal to 30% of the $1.6 billion (Canadian), or $2.23 a share, that TransCanada earned in 2011. The company expects to complete the project in 2014. The company has a 25-year supply deal with the state-owned power company, which cuts the risk of this project. Mexico continues to convert oil-fired power plants to gas, and TransCanada’s expertise should help it win more pipeline contracts....
PENN WEST PETROLEUM $21.63 (Toronto symbol PWT; Shares outstanding: 469.4 million; Market cap: $10.2 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.pennwest.com) has raised its production by over 56% over the last five years. It is now one of North America’s largest oil and gas producers.
The company has made big investments in its operations in order to boost its production. Even so, its $2.9 billion of long-term debt is a reasonable 28.4% of its market cap. It has also lowered its debt from $3.5 billion at the start of 2010.
Penn West converted from a trust to a corporation on January 1, 2011. However, it has $7.0 billion of tax pools that it is using to offset the new tax. That’s letting it maintain its $1.08-a-share annual payout, which yields 5.0%. As well, the payout (like all dividends paid by converted trusts) is now eligible for the dividend tax credit if you hold your shares outside an RRSP.
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The company has made big investments in its operations in order to boost its production. Even so, its $2.9 billion of long-term debt is a reasonable 28.4% of its market cap. It has also lowered its debt from $3.5 billion at the start of 2010.
Penn West converted from a trust to a corporation on January 1, 2011. However, it has $7.0 billion of tax pools that it is using to offset the new tax. That’s letting it maintain its $1.08-a-share annual payout, which yields 5.0%. As well, the payout (like all dividends paid by converted trusts) is now eligible for the dividend tax credit if you hold your shares outside an RRSP.
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