price to sales ratio
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....
TORSTAR CORP. $9.43 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 79.2 million; Market cap: $746.9 million; Price-to-sales ratio: 0.5; Dividend yield: 5.3%; TSINetwork Rating: Above Average; www.torstar.com) has agreed to buy 25% of privately held Blue Ant Media Inc., which owns three specialty TV channels that focus on music, comedy and travel. Blue Ant is also in the process of buying High Fidelity HDTV Inc., which owns four high-definition specialty channels, including Oasis HD (nature programming) and HIFI (music and arts programming). Blue Ant’s purchase of High Fidelity requires regulatory approval. After the deal closes, Torstar will invest $22.7 million in Blue Ant. To put that in context, Torstar earned $25.2 million, or $0.32 a share, in the three months ended September 30, 2011....
MANITOBA TELECOM SERVICES INC. $30 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 65.7 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 5.7%; TSINetwork Rating: Average; www.mtsallstream.com) has 1.3 million telephone and wireless customers in Manitoba. This business now accounts for 55% of the company’s revenue. The remaining 45% comes from its Allstream division, which provides integrated telephone, Internet and other communication services to businesses across Canada. Revenue fell from $1.9 billion in 2006 to $1.8 billion in 2010, largely because the Allstream division lost a big client. Strong competition from cable companies has also hurt demand for the company’s traditional phone services....
ANDREW PELLER LTD. $9.08 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.9 million; Market cap: $135.3 million; Price-to-sales ratio: 0.5; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.andrewpeller.com) has formed a joint venture with the winery owned by hockey star Wayne Gretzky. Peller feels it can use its marketing and distribution expertise to increase sales of Gretzky wines in Canada.
Meanwhile, Peller’s sales rose 1.4% in the three months ended September 30, 2011, to $70.0 million from $69.0 million a year earlier. That’s mainly because it is seeing strong demand for its new products and its more-profitable premium brands. Peller earned $3.4 million, or $0.24 a share, up 80.7% from $1.9 million, or $0.13 a share, a year earlier quarter. If you exclude gains on hedging contracts that the company uses to lock in foreignexchange rates, earnings would have risen 8.4%.
Andrew Peller is a buy.
...
Meanwhile, Peller’s sales rose 1.4% in the three months ended September 30, 2011, to $70.0 million from $69.0 million a year earlier. That’s mainly because it is seeing strong demand for its new products and its more-profitable premium brands. Peller earned $3.4 million, or $0.24 a share, up 80.7% from $1.9 million, or $0.13 a share, a year earlier quarter. If you exclude gains on hedging contracts that the company uses to lock in foreignexchange rates, earnings would have risen 8.4%.
Andrew Peller is a buy.
...
THE WESTAIM CORP. $0.53 (Toronto symbol WED, Aggressive Growth Portfolio, Finance sector; Shares outstanding: 581.2 million; Market cap: $308.0 million; Price-to-sales ratio: 0.9; No dividends paid; TSINetwork Rating: Speculative; www.westaim.com) owns Jevco Insurance Co., which sells insurance to high-risk drivers and owners of motorcycles and recreational vehicles.
Westaim earned $11.3 million, or $0.02 a share, in the third quarter of 2011. That’s down 48.5% from $22.0 million, or $0.03 a share, a year earlier. The year-earlier quarter benefited from an unusual tax gain. Premium revenue rose 5.5%, to $88.3 million from $83.6 million. However, Jevco’s focus on high-risk drivers adds risk.
Westaim is a hold, but only for highly aggressive investors.
...
Westaim earned $11.3 million, or $0.02 a share, in the third quarter of 2011. That’s down 48.5% from $22.0 million, or $0.03 a share, a year earlier. The year-earlier quarter benefited from an unusual tax gain. Premium revenue rose 5.5%, to $88.3 million from $83.6 million. However, Jevco’s focus on high-risk drivers adds risk.
Westaim is a hold, but only for highly aggressive investors.
...
IGM FINANCIAL INC. $45 (Toronto symbol IGM; Conservative Growth Portfolio, Finance sector; Shares outstanding: 257.5 million; Market cap: $11.6 billion; Price-to-sales ratio: 4.2; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.igmfinancial.com) reported that on November 30, 2011, it had $120.2 billion of assets under management. That’s down 4.3% from $125.6 billion a year earlier.
The company’s clients sold more investments in response to recent stock-market volatility, and share prices were lower than a year ago; these were main reasons for the drop.
IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages, so the company’s revenue and earnings suffer when the value of these assets falls. Still, low interest rates will probably spur investors to shift from fixed-income investments to equity-based mutual funds over the next few months.
...
The company’s clients sold more investments in response to recent stock-market volatility, and share prices were lower than a year ago; these were main reasons for the drop.
IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages, so the company’s revenue and earnings suffer when the value of these assets falls. Still, low interest rates will probably spur investors to shift from fixed-income investments to equity-based mutual funds over the next few months.
...
METRO INC. $53 (Toronto symbol MRU.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 100.7 million; Market cap: $5.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.metro.ca) plans to simplify its share structure. Right now, the supermarket operator has two classes of shares: 100.1 million class A subordinate-voting shares (one vote per share) and 577,440 class B multiplevoting shares (16 votes per share). Metro plans to convert the class B shares into class A shares on a one-for-one basis. After that, it will convert the class A shares into a single class of common shares.
Metro aims to complete this changeover in early 2012, following shareholder approval. Some pension plans and other institutions avoid companies with two share classes, so this move should make Metro more appealing to these investors.
Metro is a buy.
...
Metro aims to complete this changeover in early 2012, following shareholder approval. Some pension plans and other institutions avoid companies with two share classes, so this move should make Metro more appealing to these investors.
Metro is a buy.
...
RIOCAN REAL ESTATE INVESTMENT TRUST $25 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 263.4 million; Market cap: $6.6 billion; Price-to-sales ratio: 5.0; Dividend yield: 5.5%; TSINetwork Rating: Average; www.riocan.com) has purchased 80% of the Alamo Ranch shopping mall in San Antonio, Texas. Inland Western Retail REIT owns the remaining 20%.
This is RioCan’s first acquisition in San Antonio. The mall is 88% occupied, and has well-known anchor tenants, such as Target. These factors cut the risk of expanding into unfamiliar markets.
RioCan is a buy.
...
This is RioCan’s first acquisition in San Antonio. The mall is 88% occupied, and has well-known anchor tenants, such as Target. These factors cut the risk of expanding into unfamiliar markets.
RioCan is a buy.
...
AGRIUM INC. $73 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 158.0 million; Market cap: $11.5 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.1%; TSINetwork Rating: Average; www.agrium.com) makes fertilizers from natural gas. It sells its products to farmers and industrial users through its more than 1,200 stores in North America, South America and Australia. The company’s retail outlets cut its reliance on volatile fertilizer prices.
Agrium also owns 26% of a fertilizer plant in Egypt; the Egyptian government owns the rest. This plant recently suspended operations due to growing civil unrest in the country. However, this plant supplied just 2% of Agrium’s 2010 earnings, so there would be little impact if Agrium is forced to write down the value of this asset.
Meanwhile, Agrium’s earnings soared to $293 million, or $1.85 a share, in the third quarter of 2011, up from $61 million, or $0.39 a share, a year earlier (all amounts expect share price and market cap in U.S. dollars). That mainly reflects its December 2010 purchase of 300 stores in Australia. Sales rose 52.0%, to $3.1 billion from $2.1 billion.
...
Agrium also owns 26% of a fertilizer plant in Egypt; the Egyptian government owns the rest. This plant recently suspended operations due to growing civil unrest in the country. However, this plant supplied just 2% of Agrium’s 2010 earnings, so there would be little impact if Agrium is forced to write down the value of this asset.
Meanwhile, Agrium’s earnings soared to $293 million, or $1.85 a share, in the third quarter of 2011, up from $61 million, or $0.39 a share, a year earlier (all amounts expect share price and market cap in U.S. dollars). That mainly reflects its December 2010 purchase of 300 stores in Australia. Sales rose 52.0%, to $3.1 billion from $2.1 billion.
...
POTASH CORP. OF SASKATCHEWAN $44 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 856.5 million; Market cap: $37.7 billion; Price-to-sales ratio: 4.2; Dividend yield: 0.6%; TSINetwork Rating: Average; www.potashcorp.com) is a leading producer of potash, phosphate and nitrogen for use in fertilizers. Most of the company’s mines are in Saskatchewan, which has the world’s largest potash deposits.
The company sold 2.2 million tonnes of potash in the three months ended September 30, 2011. That’s up 13.7% from 1.9 million tonnes a year earlier. The average potash price rose 47.4%, to $451 a tonne from $306 (all amounts expect share price and market cap in U.S. dollars).
As a result, Potash Corp.’s earnings jumped 140.8% in the quarter, to $826 million from $343 million. Earnings per share rose 147.4%, to $0.94 from $0.38, on fewer shares outstanding. Sales increased 47.4%, to $2.3 billion from $1.6 billion.
...
The company sold 2.2 million tonnes of potash in the three months ended September 30, 2011. That’s up 13.7% from 1.9 million tonnes a year earlier. The average potash price rose 47.4%, to $451 a tonne from $306 (all amounts expect share price and market cap in U.S. dollars).
As a result, Potash Corp.’s earnings jumped 140.8% in the quarter, to $826 million from $343 million. Earnings per share rose 147.4%, to $0.94 from $0.38, on fewer shares outstanding. Sales increased 47.4%, to $2.3 billion from $1.6 billion.
...