recent acquisitions
AutoCanada Inc., $32.33, symbol ACQ on Toronto (Shares outstanding: 24.5 million; Market cap: $822.8 million; www.autocan.ca), has 49 franchised car dealerships in eight provinces. The company sells numerous brands, including Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick, Cadillac, Nissan, Hyundai, Subaru, Audi, Volkswagen and BMW. However, Chrysler vehicles (including Dodge, Jeep, Ram and Fiat) supply around 70% of its revenue. In 2014, AutoCanada’s dealerships sold roughly 57,000 vehicles and processed about 786,000 service and collision-repair orders in their 822 service bays....
AGT FOOD & INGREDIENTS $29.79 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (306-525-4490; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $684.0 million; Dividend yield: 2.0%) earned $0.44 a share in the three months ended June 30, 2015, up 2.3% from $0.43 a year earlier.
Revenue gained 5.1%, to $378.2 million from $359.8 million. The gains came from recent acquisitions and higher processing activity.
AGT continues to benefit from its plan to focus on more-profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed.
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Revenue gained 5.1%, to $378.2 million from $359.8 million. The gains came from recent acquisitions and higher processing activity.
AGT continues to benefit from its plan to focus on more-profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed.
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APPLE INC., $124.50, Nasdaq symbol AAPL, reported better-than-expected quarterly results this week. However, concerns about slowing iPhone demand and uncertainty surrounding sales of its new Apple Watch caused the stock to fall 4%. In its fiscal 2015 third quarter, which ended June 27, 2015, Apple sold 47.5 million iPhones, up 35.0% from 35.2 million a year earlier, mainly due to strong demand in China. Even so, the latest total missed the consensus forecast of 48.8 million, probably because users are waiting for the company to release a new version later this year. Earnings jumped 37.8% to $10.7 billion from $7.7 billion. Per-share profits gained 44.5%, to $1.85 from $1.28, on fewer shares outstanding. That beat the consensus estimate of $1.81....
AGT FOOD & INGREDIENTS $32.29 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231- 1100; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $719.3 million; Dividend yield: 1.9%) buys and processes a range of pulses—which include peas, beans, lentils and chickpeas—as well as other specialty crops. Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa. In the three months ended March 31, 2015, the company’s revenue gained 23.7%, to $385.2 million from $311.3 million a year earlier. Before one-time items, earnings jumped 162.5%, to $0.42 a share from $0.16. The increases came from recent acquisitions and higher processing activity. A big part of AGT’s success has come from its shift to more profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed. The stock trades at 15.7 times the $2.06 a share AGT is expected to earn in 2015. It yields 1.9%....
TRANSCONTINENTAL INC. $15 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Average; www.tctranscontinental.com) saw its earnings rise 13.7% in the quarter ended April 30, 2015, to $39.1 million, or $0.50 a share, from $34.4 million, or $0.44, a year ago. The gain largely came from two recent acquisitions: in May 2014, the company bought U.S.-based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.5 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec. Revenue rose 2.7%, to $490.5 million from $477.5 million. Contributions from acquisitions offset lower revenue from printing flyers, particularly after Target closed its 133 Canadian stores....
TRANSCONTINENTAL INC. $15 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $1.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.5%; TSINetwork Rating: Average; www.tctranscontinental.com) saw its earnings rise 13.7% in the quarter ended April 30, 2015, to $39.1 million, or $0.50 a share, from $34.4 million, or $0.44, a year ago. The gain largely came from two recent acquisitions: in May 2014, the company bought U.S.-based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.5 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec. Revenue rose 2.7%, to $490.5 million from $477.5 million. Contributions from acquisitions offset lower revenue from printing flyers, particularly after Target closed its 133 Canadian stores....
Our take on how blue chip stock Fortis seeks to balance the risks and of growth by acquisition and keep its dividend rising.
AGT FOOD & INGREDIENTS $32.29 (Toronto symbol AGT; TSINetwork Rating: Extra Risk) (604-231- 1100; www.alliancegrain.com; Shares outstanding: 23.1 million; Market cap: $719.3 million; Dividend yield: 1.9%) buys and processes a range of pulses—which include peas, beans, lentils and chickpeas—as well as other specialty crops.
Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa. In the three months ended March 31, 2015, the company’s revenue gained 23.7%, to $385.2 million from $311.3 million a year earlier. Before one-time items, earnings jumped 162.5%, to $0.42 a share from $0.16. The increases came from recent acquisitions and higher processing activity.
A big part of AGT’s success has come from its shift to more profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed. The stock trades at 15.7 times the $2.06 a share AGT is expected to earn in 2015. It yields 1.9%.
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Saskatchewan-based AGT owns 13 processing plants in Canada, nine in Turkey, four in Australia, two in the U.S., one in China and one in South Africa. In the three months ended March 31, 2015, the company’s revenue gained 23.7%, to $385.2 million from $311.3 million a year earlier. Before one-time items, earnings jumped 162.5%, to $0.42 a share from $0.16. The increases came from recent acquisitions and higher processing activity.
A big part of AGT’s success has come from its shift to more profitable products, such as ingredients and packaged foods, as opposed to simply cleaning, splitting and bagging bulk crops. Food makers use these ingredients in products such as baked goods, soups and beverages, as well as pet food and animal feed. The stock trades at 15.7 times the $2.06 a share AGT is expected to earn in 2015. It yields 1.9%.
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FORTIS INC. $36 (Toronto symbol FTS; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 277.5 million; Market cap: $10.0 billion; Price-to-sales ratio: 1.7; Dividend yield 3.8%; TSINetwork Rating: Above Average; www.fortisinc.com) began supplying electricity to St. John’s, Newfoundland, in 1885. The company is now the main power utility in Newfoundland and PEI.
In the past decade, Fortis has used acquisitions to expand to other parts of Canada. In May 2004, it paid $1.5 billion for regulated power companies in Alberta and B.C. In May 2007, it added Terasen (now called Fortis BC Energy), which distributes natural gas to nearly one million customers in B.C. Fortis paid $3.7 billion for this business.
The company is also buying utilities outside Canada. In June 2013, it paid $1.5 billion U.S. for CH Energy Group, which delivers electricity to 300,000 clients in New York State’s Mid-Hudson River Valley. CH doesn’t own power plants; instead, it buys power from other producers. It also distributes natural gas to 77,000 users.
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In the past decade, Fortis has used acquisitions to expand to other parts of Canada. In May 2004, it paid $1.5 billion for regulated power companies in Alberta and B.C. In May 2007, it added Terasen (now called Fortis BC Energy), which distributes natural gas to nearly one million customers in B.C. Fortis paid $3.7 billion for this business.
The company is also buying utilities outside Canada. In June 2013, it paid $1.5 billion U.S. for CH Energy Group, which delivers electricity to 300,000 clients in New York State’s Mid-Hudson River Valley. CH doesn’t own power plants; instead, it buys power from other producers. It also distributes natural gas to 77,000 users.
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TRANSCONTINENTAL INC., $16.06, Toronto symbol TCL.A, fell 12% this week after reporting lower-than-expected earnings. In its 2015 second quarter, which ended April 30, 2015, the company’s earnings rose 13.7%, to $39.1 million, or $0.50 a share. That fell short of the consensus estimate of $0.54. A year earlier, Transcontinental earned $34.4 million, or $0.44 a share. The gain largely came from two recent acquisitions: in May 2014, the company bought U.S.-based Capri Packaging, a maker of plastic bags and pouches for cheese and other dairy products, for $146.5 million. And in June 2014, it paid Sun Media $78.8 million for 74 weekly newspapers in Quebec....