price to sales ratio
BCE INC. $42 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.6 million; Market cap: $32.5 billion; Price-to-sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) is joining a consortium of investors, including the Ontario Teachers’ Pension Plan, to buy privately held Q9 Networks Inc., which provides data-storage and web-hosting services to businesses across Canada. Q9 has 11 data centres in Ontario, Alberta and B.C.
This investment will help BCE take advantage of growing demand from business clients for reliable cloud-computing services. BCE already operates six data centres. It will open a seventh later this year.
BCE will pay $180 million for a 30% stake in Q9 when the deal closes, probably by the end of 2012. The purchase price is equal to 31% of the $580 million, or $0.75 a share, that BCE earned in the three months ended March 31, 2012.
...
This investment will help BCE take advantage of growing demand from business clients for reliable cloud-computing services. BCE already operates six data centres. It will open a seventh later this year.
BCE will pay $180 million for a 30% stake in Q9 when the deal closes, probably by the end of 2012. The purchase price is equal to 31% of the $580 million, or $0.75 a share, that BCE earned in the three months ended March 31, 2012.
...
TELUS CORP. (Toronto symbols T $59 and T.A $58; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 325.0 million; Market cap: $19.2 billion; Price-to-sales ratio: 1.8; Dividend yield: 4.1%; TSINetwork Rating: Above Average; www.telus.com) has won a contract to help more pharmacies in Newfoundland connect to an electronic drug database....
AGRIUM INC. $84 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 158.0 million; Market cap: $13.3 billion; Price-to-sales ratio: 0.8; Dividend yield: 1.2%; TSINetwork Rating: Average; www.agrium.com) has raised its semi-annual dividend by 122.2%, to $0.50 a share (all amounts except share price and market cap in U.S. dollars) from $0.225. The new annual rate of $1.00 yields 1.2%.
Meanwhile, some farmers have objected to the company’s $1.65-billion purchase of 232 of Viterra Inc.’s (Toronto symbol VT) 258 retail stores in western Canada, which sell seed, fertilizer and other agricultural products. However, Agrium’s competitors would still control twothirds of this market.
The deal also includes Viterra’s 17 stores in Australia, plus its 34% stake in a fertilizer plant. The deal should close in the next few weeks.
...
CANADIAN IMPERIAL BANK OF COMMERCE $71 (Toronto symbol CM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 404.9 million; Market cap: $28.7 billion; Price-to-sales ratio: 1.8; Dividend yield: 5.1%; TSINetwork Rating: Above Average; www.cibc.com) continues to profit by focusing on retail banking, which accounts for 76% of its business. That cuts its reliance on its more-volatile corporate-lending and securities-trading divisions.
In its fiscal 2012 second quarter, which ended April 30, 2012, the bank earned $766 million, or $1.90 a share. That’s up 6.1% from $722 million, or $1.80 a share, a year earlier. Without unusual items, such as losses on securities that CIBC holds, earnings per share would have risen 9.3%, to $2.00 from $1.83. Revenue rose 2.3%, to $3.1 billion from $3.0 billion.
CIBC is a buy.
...
In its fiscal 2012 second quarter, which ended April 30, 2012, the bank earned $766 million, or $1.90 a share. That’s up 6.1% from $722 million, or $1.80 a share, a year earlier. Without unusual items, such as losses on securities that CIBC holds, earnings per share would have risen 9.3%, to $2.00 from $1.83. Revenue rose 2.3%, to $3.1 billion from $3.0 billion.
CIBC is a buy.
...
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $40 and TPX.B $40; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.1 million; Market cap: $7.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.3%; TSINetwork Rating: Average; www.molsoncoors.com) hopes to spur sales this summer with Coors Light Iced T, a new beer mixed with tea and lemon.
Innovative products like this should help the company compete with makers of flavoured vodka and wine drinks. Molson also aims to attract more consumers who don’t typically drink beer, particularly women.
Molson Coors is a buy. The class B shares are the better choice.
...
Innovative products like this should help the company compete with makers of flavoured vodka and wine drinks. Molson also aims to attract more consumers who don’t typically drink beer, particularly women.
Molson Coors is a buy. The class B shares are the better choice.
...
IGM FINANCIAL INC. $39 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 257.5 million; Market cap: $10.0 billion; Price-to-sales ratio: 3.7; Dividend yield: 5.5%; TSINetwork Rating: Above Average; www.igmfinancial.com) is Canada’s largest independent mutual fund company, with $117.0 billion of assets under management.
Falling stock markets continue to hurt mutual fund sales. As a result, IGM’s earnings fell 5.5%, to $199.7 million, in the three months ended March 31, 2012. A year earlier, it earned $211.2 million. Earnings per share fell 3.7%, to $0.78 from $0.81, on fewer shares outstanding. Revenue declined 5.4%, to $673.1 million from $711.4 million.
To help spur sales and compete with other fund companies, IGM is cutting the management fees on most of the mutual funds it sells through its Investors Group subsidiary. It is also changing the way it pays its salespeople, which will result in savings that will help offset the lower fee income.
...
Falling stock markets continue to hurt mutual fund sales. As a result, IGM’s earnings fell 5.5%, to $199.7 million, in the three months ended March 31, 2012. A year earlier, it earned $211.2 million. Earnings per share fell 3.7%, to $0.78 from $0.81, on fewer shares outstanding. Revenue declined 5.4%, to $673.1 million from $711.4 million.
To help spur sales and compete with other fund companies, IGM is cutting the management fees on most of the mutual funds it sells through its Investors Group subsidiary. It is also changing the way it pays its salespeople, which will result in savings that will help offset the lower fee income.
...
GREAT-WEST LIFECO INC. $21 (Toronto symbol GWO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 949.8 million; Market cap: $19.9 billion; Price-to-sales ratio: 0.7; Dividend Yield: 5.9%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) is Canada’s largest insurance company, with $523.0 billion of assets under administration. It also sells mutual funds, as well as retirement-planning and wealthmanagement services. Canada accounts for 53% of the company’s earnings, followed by Europe (31%) and the U.S. (16%).
In the three months ended March 31, 2012, Great-West’s earnings rose 8.7%, to $451 million, or $0.48 a share. A year earlier, it earned $415 million, or $0.44 a share. Revenue rose 3.9%, to $6.5 billion from $6.3 billion.
The gains mainly came from its European division, which earned $141 million, up 64.0% from $86 million a year earlier. That’s because it set aside $75 million in the year-earlier quarter to cover claims related to the earthquakes in Japan and New Zealand. Earnings fell 1.2% in Canada and 14.8% in the U.S.
...
In the three months ended March 31, 2012, Great-West’s earnings rose 8.7%, to $451 million, or $0.48 a share. A year earlier, it earned $415 million, or $0.44 a share. Revenue rose 3.9%, to $6.5 billion from $6.3 billion.
The gains mainly came from its European division, which earned $141 million, up 64.0% from $86 million a year earlier. That’s because it set aside $75 million in the year-earlier quarter to cover claims related to the earthquakes in Japan and New Zealand. Earnings fell 1.2% in Canada and 14.8% in the U.S.
...
ANDREW PELLER LTD. $9.93 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.9 million; Market cap: $148.0 million; Price-to-sales ratio: 0.5; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer, after Vincor Canada. Peller operates wineries in B.C., Ontario and Nova Scotia. It also imports wines and sells home-winemaking kits.
In its 2012 fiscal year, which ended March 31, 2012, Peller’s sales rose 4.3%, to $276.9 million from $265.4 million in fiscal 2011.
That’s because the company continues to launch new wines, particularly higher-priced premium wines. Its sales also benefited from a new joint venture with Wayne Gretzky Estate Winery and a recently purchased home-winemaking business.
...
In its 2012 fiscal year, which ended March 31, 2012, Peller’s sales rose 4.3%, to $276.9 million from $265.4 million in fiscal 2011.
That’s because the company continues to launch new wines, particularly higher-priced premium wines. Its sales also benefited from a new joint venture with Wayne Gretzky Estate Winery and a recently purchased home-winemaking business.
...
CENOVUS ENERGY INC. $32 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 755.6 million; Market cap: $24.2 billion; Price-to-sales ratio: 1.4; Dividend yield: 2.8%; TSINetwork Rating: Extra Risk; www.cenovus.com) has received regulatory approval to develop its Narrows Lake oil sands project in northern Alberta; U.S.-based ConocoPhillips (New York symbol COP) owns 50% of this property.
Narrows Lake could begin operating in 2017. When it reaches full capacity, it should produce 130,000 barrels per day (Cenovus’s share is 65,000 barrels). To put that in context, Cenovus produced an average of 156,850 barrels per day in the first quarter of 2012. Narrows Lake’s reserves should last 40 years.
The company plans to use a new technique, called a solventaided process, to extract the oil from Narrows Lake. This approach will add to the project’s construction and development costs, but it should let the partners recover up to 15% more oil than current methods.
...
Narrows Lake could begin operating in 2017. When it reaches full capacity, it should produce 130,000 barrels per day (Cenovus’s share is 65,000 barrels). To put that in context, Cenovus produced an average of 156,850 barrels per day in the first quarter of 2012. Narrows Lake’s reserves should last 40 years.
The company plans to use a new technique, called a solventaided process, to extract the oil from Narrows Lake. This approach will add to the project’s construction and development costs, but it should let the partners recover up to 15% more oil than current methods.
...
BANK OF NOVA SCOTIA $52 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.1 billion; Market cap: $57.2 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.2%; TSINetwork Rating: Above Average; www.scotiabank.com) has agreed to sell Scotia Plaza, its 68-storey office building in downtown Toronto.
Under the terms of the deal, Dundee REIT (Toronto symbol D.UN) and H&R REIT (Toronto symbol HR.UN) will pay Scotia $1.3 billion for the building when the sale closes, probably by June 30, 2012. Dundee will own two-thirds of the property, and H&R will own the remaining third. The bank will remain as the anchor tenant.
Meanwhile, Bank of Nova Scotia earned $1.5 billion in the three months ended April 30, 2012. That’s up 16.1% from $1.3 billion a year earlier. Earnings per share rose 8.5%, to $1.15 from $1.06, on more shares outstanding. Revenue rose 1.4%, to $4.7 billion from $4.6 billion. Strong gains at its international operations offset slower growth at its Canadian retail banking division.
...
Under the terms of the deal, Dundee REIT (Toronto symbol D.UN) and H&R REIT (Toronto symbol HR.UN) will pay Scotia $1.3 billion for the building when the sale closes, probably by June 30, 2012. Dundee will own two-thirds of the property, and H&R will own the remaining third. The bank will remain as the anchor tenant.
Meanwhile, Bank of Nova Scotia earned $1.5 billion in the three months ended April 30, 2012. That’s up 16.1% from $1.3 billion a year earlier. Earnings per share rose 8.5%, to $1.15 from $1.06, on more shares outstanding. Revenue rose 1.4%, to $4.7 billion from $4.6 billion. Strong gains at its international operations offset slower growth at its Canadian retail banking division.
...