price to sales ratio
NEWMONT MINING CORP. $25 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.1 million; Market cap: $12.3 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.2%; TSINetwork Rating: Average; www.newmont.com) owns 48.5% of the Batu Hijau copper/gold mine in Indonesia, which supplies 7% of its revenue.
The Indonesian government wants miners to process more ore in the country, so it recently announced a ban on mineral exports....
The Indonesian government wants miners to process more ore in the country, so it recently announced a ban on mineral exports....
MCKESSON CORP. $173 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 229.7 million; Market cap: $39.7 billion; Price-to-sales ratio: 0.3; Dividend yield: 0.6%; TSINetwork Rating: Above Average; www.mckesson- .com) has agreed to buy shares of Celesio AG, a German firm that distributes prescription drugs in Europe and Brazil, from its two largest investors....
THE BOEING CO. $130 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 751.5 million; Market cap: $97.7 billion; Price-to-sales ratio: 1.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.boeing.com) delivered a record 648 passenger jets in 2013, beating its earlier forecast of 645....
INTEL CORP. $25 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $125.0 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.7%; TSINetwork Rating: Above Average; www.intel.com) is selling its Intel Media business, which is developing a service called OnCue that lets users watch TV shows over the Internet.
VERIZON COMMUNICATIONS INC....
VERIZON COMMUNICATIONS INC....
TRANSCONTINENTAL INC. $14 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.0 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.5; Dividend yield: 4.1%; TSINetwork Rating: Average; www. tctranscontinental.com) is Canada’s leading printer of flyers, magazines, newspapers and books. This business accounts for 67% of its revenue and 85% of its earnings. The remaining 33% of revenue and 15% of earnings comes from publishing 35 magazines and 175 daily and weekly newspapers.
Advertisers continue to shift to the Internet. That’s why Transcontinental’s revenue fell from $2.2 billion in 2009 to $2.0 billion in 2011 (fiscal years end October 31). In 2012, the company traded its Mexican printing plants for six Canadian facilities. The new plants brought its revenue up to $2.1 billion in both 2012 and 2013.
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Advertisers continue to shift to the Internet. That’s why Transcontinental’s revenue fell from $2.2 billion in 2009 to $2.0 billion in 2011 (fiscal years end October 31). In 2012, the company traded its Mexican printing plants for six Canadian facilities. The new plants brought its revenue up to $2.1 billion in both 2012 and 2013.
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CGI GROUP INC. $35 (Toronto symbol GIB.A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 310.7 million; Market cap: $10.9 billion; Price-to-sales ratio: 1.1; No dividends paid; TSINetwork Rating: Extra Risk; www.cgi.com) is the lead contractor for the healthcare.gov website, which lets Americans shop for health insurance plans under the Affordable Care Act (or Obamacare).
Due to problems with the website, the U.S. government will not renew CGI’s contract when it expires in February 2014. Even so, the revenue from the renewal—about $90 million U.S.—is small next to the company’s annual revenue of $10 billion. Moreover, the website issues should have little long-term impact on the company’s reputation.
CGI Group is still a buy.
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Due to problems with the website, the U.S. government will not renew CGI’s contract when it expires in February 2014. Even so, the revenue from the renewal—about $90 million U.S.—is small next to the company’s annual revenue of $10 billion. Moreover, the website issues should have little long-term impact on the company’s reputation.
CGI Group is still a buy.
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SHAWCOR LTD. $39 (Toronto symbol SCL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 60.0 million; Market cap: $2.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 1.3%; TSINetwork Rating: Average; www.shawcor.com) expects its earnings to fall about 50% in the fourth quarter of 2013, compared to the third quarter.
That’s mainly because it completed most of a major pipeline-coating contract in Asia in the third quarter. As well, the operators of new pipeline projects in the North Sea and Brazil have delayed their start-up. As a result, ShawCor will now begin work on these contracts in the first quarter of 2014.
ShawCor is still a buy....
That’s mainly because it completed most of a major pipeline-coating contract in Asia in the third quarter. As well, the operators of new pipeline projects in the North Sea and Brazil have delayed their start-up. As a result, ShawCor will now begin work on these contracts in the first quarter of 2014.
ShawCor is still a buy....
BLACKBERRY LTD. $9.36 (Toronto symbol BB; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 524.6 million; Market cap: $4.9 billion; Price-to-sales ratio: 0.6; No dividends paid; TSINetwork Rating: Speculative; www.blackberry.com) has sold an additional $250 million worth of convertible debentures (all amounts except share price and market cap in U.S. dollars) to its largest shareholder, Fairfax Financial Holdings (Toronto symbol FFH).
Fairfax now holds $500 million of these debentures, which it can convert into BlackBerry common shares at $10.00 a share. If it did, Fairfax would own 17.6% of the total shares outstanding.
The extra cash should help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce and focusing on corporate and government clients. However, the stock will remain volatile until its revenue and earnings improve.
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Fairfax now holds $500 million of these debentures, which it can convert into BlackBerry common shares at $10.00 a share. If it did, Fairfax would own 17.6% of the total shares outstanding.
The extra cash should help the smartphone maker complete its restructuring, which includes cutting 40% of its workforce and focusing on corporate and government clients. However, the stock will remain volatile until its revenue and earnings improve.
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AGRIUM INC. $104 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.5 million; Market cap: $15.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.2%; TSINetwork Rating: Average; www.agrium.com) makes nitrogen-based fertilizers from natural gas. That could weaken its earnings growth, because the particularly cold North American winter has pushed up gas prices.
However, Agrium uses hedging contracts to lock in gas prices, which cuts its risk. Moreover, it gets 70% of its revenue by selling seeds and fertilizers to farmers through its 1,250 stores in North America, South America and Australia. That further reduces its gas-price exposure.
Agrium is a buy....
However, Agrium uses hedging contracts to lock in gas prices, which cuts its risk. Moreover, it gets 70% of its revenue by selling seeds and fertilizers to farmers through its 1,250 stores in North America, South America and Australia. That further reduces its gas-price exposure.
Agrium is a buy....
CANADIAN TIRE CORP. $98 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 80.2 million; Market cap: $7.9 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www. canadiantire.ca) recently sold 16.9% of CT Real Estate Investment Trust (Toronto symbol CRT.UN) through an initial public offering. CT REIT holds 72% of Canadian Tire’s real estate assets, including 255 stores and one distribution centre. The company received $279.3 million for these shares.
Meanwhile, Canadian Tire earned $145.5 million in the three months ended September 28, 2013, up 10.7% from $131.4 million a year earlier. Earnings per share gained 11.2%, to $1.79 from $1.61, on fewer shares outstanding. Sales rose 4.5%, to $3.0 billion from $2.8 billion.
Strong demand for automotive and kitchen products pushed up same-store sales by 2.0% at the company’s 491 Canadian Tire stores. Same-store sales rose 6.3% at its 415 sports outlets, partly due to the Pro Hockey Life chain, acquired in August 2013. Same-store sales at the 386-store Mark’s clothing chain gained 4.3%.
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Meanwhile, Canadian Tire earned $145.5 million in the three months ended September 28, 2013, up 10.7% from $131.4 million a year earlier. Earnings per share gained 11.2%, to $1.79 from $1.61, on fewer shares outstanding. Sales rose 4.5%, to $3.0 billion from $2.8 billion.
Strong demand for automotive and kitchen products pushed up same-store sales by 2.0% at the company’s 491 Canadian Tire stores. Same-store sales rose 6.3% at its 415 sports outlets, partly due to the Pro Hockey Life chain, acquired in August 2013. Same-store sales at the 386-store Mark’s clothing chain gained 4.3%.
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