price to sales ratio
THOMSON REUTERS CORP. $28 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 827.5 million; Market cap: $23.2 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) has suspended its plan to sell its health-care business, which sells data and software that helps hospitals, clinics and medical professionals lower their costs and cut fraud. This division supplies 3% of Thomson Reuters’ total revenue.
The company put the health-care division up for sale in June 2011, but there was limited interest due to uncertainty over the global economy. Holding onto it until conditions improve makes sense.
Thomson Reuters is a buy.
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The company put the health-care division up for sale in June 2011, but there was limited interest due to uncertainty over the global economy. Holding onto it until conditions improve makes sense.
Thomson Reuters is a buy.
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CANADIAN TIRE CORP. $65 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.4 million; Market cap: $5.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) faces strong competition from U.S.-based department store operator Target, which plans to open around 135 stores in Canada in 2013.
The company’s experience competing with big U.S. retailers, like Wal-Mart and Home Depot, will help it prepare for Target. As well, Canadian Tire has recently added to its automotive products and services. That will give it an edge over Target, which will focus more on clothing and household goods.
Canadian Tire is a buy.
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The company’s experience competing with big U.S. retailers, like Wal-Mart and Home Depot, will help it prepare for Target. As well, Canadian Tire has recently added to its automotive products and services. That will give it an edge over Target, which will focus more on clothing and household goods.
Canadian Tire is a buy.
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FINNING INTERNATIONAL INC. $23 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 171.6 million; Market cap: $3.9 billion; Price-to-sales ratio: 0.7; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.finning.com) saw its sales jump 26% in the first nine months of 2011. That’s because higher commodity prices spurred demand for heavy equipment, such as bulldozers and trucks, from oil-exploration and mining companies.
However, Finning expects its 2012 sales to rise by just 5%, as slower growth in China and India could dampen resource prices. However, based on its strong order backlog, the company expects its sales to rise by 10% in both 2013 and 2014. As well, Finning expects its earnings to rise faster than its sales as it continues to expand its repair and service businesses. In the third quarter of 2011, Finning got 39% of its revenue from selling product-support services.
Finning is a buy.
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However, Finning expects its 2012 sales to rise by just 5%, as slower growth in China and India could dampen resource prices. However, based on its strong order backlog, the company expects its sales to rise by 10% in both 2013 and 2014. As well, Finning expects its earnings to rise faster than its sales as it continues to expand its repair and service businesses. In the third quarter of 2011, Finning got 39% of its revenue from selling product-support services.
Finning is a buy.
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BANK OF MONTREAL $58 (Toronto symbol BMO; Conservative Growth Portfolio, Finance sector; Shares outstanding: 639.0 million; Market cap: $37.1 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.bmo.com) currently pays quarterly dividends of $0.70 a share.
The bank will now let shareholders reinvest their dividends in additional shares at a 2% discount to the market price. Previously, it did not offer a discount. As well, shareholders can buy up to $40,000 of additional common shares at the market price directly from the bank each year.
Bank of Montreal is a buy.
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The bank will now let shareholders reinvest their dividends in additional shares at a 2% discount to the market price. Previously, it did not offer a discount. As well, shareholders can buy up to $40,000 of additional common shares at the market price directly from the bank each year.
Bank of Montreal is a buy.
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EMERA INC. $33 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 122.2 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 4.1%; TSINetwork Rating: Average; www.emera.com) gets most of its revenue from Nova Scotia Power Inc., which is Nova Scotia’s main electricity supplier. The rest comes from its investments in pipelines, power plants and wind-power projects in the U.S. and Caribbean.
The company is using its steady cash flow to invest in new projects that will spur its long-term growth. The biggest is a joint venture with the Newfoundland government to transmit power from a proposed hydroelectric plant at Muskrat Falls on Labrador’s Churchill River to Newfoundland. Emera will pay $600 million for 29% of this business.
Emera will also spend $1.2 billion to build an undersea cable which will transmit 20% of the Muskrat Falls plant’s power to Nova Scotia. Emera will own 100% of this cable. The entire project should begin operating around 2016.
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The company is using its steady cash flow to invest in new projects that will spur its long-term growth. The biggest is a joint venture with the Newfoundland government to transmit power from a proposed hydroelectric plant at Muskrat Falls on Labrador’s Churchill River to Newfoundland. Emera will pay $600 million for 29% of this business.
Emera will also spend $1.2 billion to build an undersea cable which will transmit 20% of the Muskrat Falls plant’s power to Nova Scotia. Emera will own 100% of this cable. The entire project should begin operating around 2016.
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TRANSCONTINENTAL INC. $13 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 81.0 million; Market cap: $1.1 billion; Price-to-sales ratio: 0.5; Dividend yield: 4.2%; TSINetwork Rating: Average; www.tctranscontinental.com) is the largest commercial printer in Canada and the fourth-largest in North America. It also publishes newspapers and magazines.
Transcontinental also has over 1,000 websites, which supply 16% of its total revenue. These websites will become more important to its growth in the next few years as advertisers spend more on the Internet than print products.
The company recently swapped its printing plants in Mexico for six facilities in Canada. If you exclude the contribution from the Mexican plants and other unusual items, such as goodwill writedowns, Transcontinental earned $161.7 million, or $2.00 a share, in its 2011 fiscal year (which ended October 31, 2011). That’s up 3.7% from $155.9 million, or $1.93 a share, in fiscal 2010. Sales rose 0.8%, to $2.04 billion from $2.03 billion.
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Transcontinental also has over 1,000 websites, which supply 16% of its total revenue. These websites will become more important to its growth in the next few years as advertisers spend more on the Internet than print products.
The company recently swapped its printing plants in Mexico for six facilities in Canada. If you exclude the contribution from the Mexican plants and other unusual items, such as goodwill writedowns, Transcontinental earned $161.7 million, or $2.00 a share, in its 2011 fiscal year (which ended October 31, 2011). That’s up 3.7% from $155.9 million, or $1.93 a share, in fiscal 2010. Sales rose 0.8%, to $2.04 billion from $2.03 billion.
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CAE INC. $10 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 257.6 million; Market cap: $2.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.cae.com) earned $38.4 million in the quarter ended September 30, 2011. That’s down 1.8% from $39.1 million a year earlier. Earnings per share were unchanged at $0.15 on more shares outstanding.
If you exclude costs to integrate Medical Education Technologies, Inc. (METI), which CAE recently purchased for $130 million U.S., CAE would have earned $41.1 million, or $0.16 a share, in the latest quarter. METI makes medical simulators and other products for training paramedics and medical students.
Revenue rose 11.7%, to $433.5 million from $388.0 million. METI contributed $7.1 million to the increase. In addition, demand for CAE’s flight simulators and pilot-training services continues to rise as airlines replace their aging planes with newer models.
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If you exclude costs to integrate Medical Education Technologies, Inc. (METI), which CAE recently purchased for $130 million U.S., CAE would have earned $41.1 million, or $0.16 a share, in the latest quarter. METI makes medical simulators and other products for training paramedics and medical students.
Revenue rose 11.7%, to $433.5 million from $388.0 million. METI contributed $7.1 million to the increase. In addition, demand for CAE’s flight simulators and pilot-training services continues to rise as airlines replace their aging planes with newer models.
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DUNDEE CORP. $24 (Toronto symbol DC.A; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 51.7 million; Market cap: $1.2 billion; Price-to-sales ratio: 6.6; No dividends paid; TSINetwork Rating: Average; www.dundeecorp.com) is buying the 51% of Dundee Capital Markets Inc. (Toronto symbol DCM) that it does not already own. This business sells investment-management and brokerage services.
This purchase will cost Dundee roughly $89 million, which is slightly more than the $88.6 million, or $1.29 a share, that it earned in the three months ended September 30, 2011. Taking full control will let Dundee lower this business’s administrative and other costs. The deal needs shareholder and regulatory approvals, but it should close in the first half of 2012.
Dundee is a buy.
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This purchase will cost Dundee roughly $89 million, which is slightly more than the $88.6 million, or $1.29 a share, that it earned in the three months ended September 30, 2011. Taking full control will let Dundee lower this business’s administrative and other costs. The deal needs shareholder and regulatory approvals, but it should close in the first half of 2012.
Dundee is a buy.
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GENNUM CORP. $5.95 (Toronto symbol GND; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 35.5 million; Market cap: $211.2 million; Price-to-sales ratio: 1.5; Dividend yield: 2.4%; TSINetwork Rating: Average; www.gennum.com) designs chips and other electronic equipment that lets television broadcasters store, edit and transfer video signals.
The company is now expanding into chips that speed up the flow of data in computer networks. In April 2011, it paid $35.9 million for U.K.-based Nanotech Semiconductor Ltd., which designs chips for communications networks (all amounts except share price and market cap in U.S. dollars).
In its third quarter, which ended August 31, 2011, Gennum’s sales rose 6.6%, to $36.7 million from $34.4 million a year earlier. The gain mainly reflects the contribution from Nanotech.
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The company is now expanding into chips that speed up the flow of data in computer networks. In April 2011, it paid $35.9 million for U.K.-based Nanotech Semiconductor Ltd., which designs chips for communications networks (all amounts except share price and market cap in U.S. dollars).
In its third quarter, which ended August 31, 2011, Gennum’s sales rose 6.6%, to $36.7 million from $34.4 million a year earlier. The gain mainly reflects the contribution from Nanotech.
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NORDION INC. $9.02 (Toronto symbol NDN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 62.4 million; Market cap: $562.8 million; Price-to-sales ratio: 2.0; Dividend yield: 4.5%; TSINetwork Rating: Extra Risk; www.nordion.com) supplies medical isotopes for cancer detection and research. It also makes products that sterilize surgical tools and food.
In its 2011 fiscal year, which ended October 31, 2011, Nordion’s revenue rose 23.5%, to $274.0 million from $222.0 million in fiscal 2010 (all amounts except share price and market cap in U.S. dollars).
Revenue at Nordion’s sterilization equipment division (which supplies 40% of its overall revenue) rose 4.9% in 2011, mainly because the company raised the prices of these products and benefited from favourable exchange rates.
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In its 2011 fiscal year, which ended October 31, 2011, Nordion’s revenue rose 23.5%, to $274.0 million from $222.0 million in fiscal 2010 (all amounts except share price and market cap in U.S. dollars).
Revenue at Nordion’s sterilization equipment division (which supplies 40% of its overall revenue) rose 4.9% in 2011, mainly because the company raised the prices of these products and benefited from favourable exchange rates.
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