Thomson Reuters Corp.
Toronto symbol TRI, divides its operations into two divisions: Markets, which provides financial information products to banks and other financial institutions; and Professional, which sells specialized information to professionals in the legal, accounting, scientific and healthcare fields.
Hidden value is a key factor we look for in our stock recommendations. A good example of an underappreciated asset is a company’s brand name. Balance sheets often fail to assign any value to brands, even household names that have built up multitudes of loyal customers over the years.
These four companies own some of the best brands in their industries....
These four companies own some of the best brands in their industries....
The Successful Investor Hotline. Friday, December 14, 2012 Dear client,...
THOMSON REUTERS CORP. $28 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 825.9 million; Market cap: $23.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 56% of its revenue and 45% of its earnings by selling news and information to professionals in the banking industry. It also sells specialized information products to clients in the legal, accounting and scientific-research fields.
Slow economic growth and tighter regulations are prompting banks and brokerage firms to cut their spending on information products. Thomson Reuters is also spending more to improve the performance of, and add new features to, its Eikon desktop computer terminals, which deliver news and financial data to traders and portfolio managers.
As a result, the company’s earnings fell 1.8% in the three months ended September 30, 2012, to $445 million from $453 million a year earlier (all amounts except share price and market cap in U.S. dollars). Due to fewer shares outstanding, earnings per share were unchanged at $0.54.
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Slow economic growth and tighter regulations are prompting banks and brokerage firms to cut their spending on information products. Thomson Reuters is also spending more to improve the performance of, and add new features to, its Eikon desktop computer terminals, which deliver news and financial data to traders and portfolio managers.
As a result, the company’s earnings fell 1.8% in the three months ended September 30, 2012, to $445 million from $453 million a year earlier (all amounts except share price and market cap in U.S. dollars). Due to fewer shares outstanding, earnings per share were unchanged at $0.54.
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Consumers continue to rely more on online information sources and less on newspapers and magazines. In response, many publishers are finding new ways to sell their content on the Internet. These three are leading the way, thanks to their strong brands and profitable niche markets. That, along with their ongoing cost cuts, should help them offset lower revenue from their printed products. THOMSON REUTERS CORP. $28 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 825.9 million; Market cap: $23.1 billion; Price-to-sales ratio: 1.6; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 56% of its revenue and 45% of its earnings by selling news and information to professionals in the banking industry. It also sells specialized information products to clients in the legal, accounting and scientific-research fields. Slow economic growth and tighter regulations are prompting banks and brokerage firms to cut their spending on information products. Thomson Reuters is also spending more to improve the performance of, and add new features to, its Eikon desktop computer terminals, which deliver news and financial data to traders and portfolio managers....
ENBRIDGE INC., $39.86, Toronto symbol ENB, has finished repairing a leaking pipeline in Wisconsin. This line pumps crude oil from Western Canada to refineries in the U.S. Midwest. However, U.S. regulators have stopped Enbridge from restarting the pipeline until the company submits a new plan outlining its environmental and maintenance procedures. This delay is not likely to have a meaningful impact on Enbridge’s growth. Meanwhile, the company earned $277 million in the three months ended June 30, 2012. That’s up 7.4% from $258 million a year earlier. Earnings per share rose 5.9%, to $0.36 from $0.34, on more shares outstanding....
THOMSON REUTERS CORP. $29 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) is buying FX Alliance Inc. (New York symbol FX), which sells foreign exchange data to banks, portfolio managers and corporations. When the deal closes in the next weeks, it will strengthen Thomson’s electronic-data products.
The $625-million U.S. price is equal to 37% of the $1.7 billion U.S., or $1.98 U.S. a share, that Thomson earned in 2011.
Thomson Reuters is a buy.
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The $625-million U.S. price is equal to 37% of the $1.7 billion U.S., or $1.98 U.S. a share, that Thomson earned in 2011.
Thomson Reuters is a buy.
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THOMSON REUTERS CORP. $29 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.5%; TSINetwork Rating: Above Average; www.thomsonreuters.com) is buying FX Alliance Inc. (New York symbol FX), which sells foreign exchange data to banks, portfolio managers and corporations. When the deal closes in the next weeks, it will strengthen Thomson’s electronic-data products. The $625-million U.S. price is equal to 37% of the $1.7 billion U.S., or $1.98 U.S. a share, that Thomson earned in 2011. Thomson Reuters is a buy.
Media companies continue to look for ways to cut their costs in response to rising competition from free information on the Internet. In some cases, the reductions are drastic. Recently, Postmedia’s Ottawa Citizen, Edmonton Journal and Calgary Herald all dropped their Sunday editions. But one Canadian media stock with a more specialized clientele aims to remain profitable and maintain its dividend thanks to a major cost cutting measure. The company has also been expanding its presence in international markets....
THOMSON REUTERS CORP. $30 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 58% of its revenue and 48% of its earnings by selling news and information products to professionals in the banking industry and the legal (25%, 32%), accounting (10%, 11%) and scientific research (7%, 9%) fields.
Over 85% of the company’s revenue comes from products it sells under subscriptions and contracts. That gives it predictable revenue streams and cuts its risk. As well, more of its customers are switching from printed to electronic products; that’s lowering its printing and postage costs.
Thomson Reuters recently agreed to sell its health care business, which provides data and software that helps hospitals and clinics lower their costs and cut fraud. This business supplied 6% of the company’s revenue. Thomson Reuters will get $1.25 billion when the sale closes by the end of 2012 (all amounts except share price and market cap in U.S. dollars).
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Over 85% of the company’s revenue comes from products it sells under subscriptions and contracts. That gives it predictable revenue streams and cuts its risk. As well, more of its customers are switching from printed to electronic products; that’s lowering its printing and postage costs.
Thomson Reuters recently agreed to sell its health care business, which provides data and software that helps hospitals and clinics lower their costs and cut fraud. This business supplied 6% of the company’s revenue. Thomson Reuters will get $1.25 billion when the sale closes by the end of 2012 (all amounts except share price and market cap in U.S. dollars).
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These three media companies continue to cut their costs and streamline their businesses in response to rising competition from free information on the Internet. The resulting savings have kept them profitable and let them maintain—or raise—their dividends. They have also been making acquisitions, often at bargain prices. THOMSON REUTERS CORP. $30 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 829.2 million; Market cap: $24.9 billion; Price-to-sales ratio: 1.7; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.thomsonreuters.com) gets 58% of its revenue and 48% of its earnings by selling news and information products to professionals in the banking industry and the legal (25%, 32%), accounting (10%, 11%) and scientific research (7%, 9%) fields. Over 85% of the company’s revenue comes from products it sells under subscriptions and contracts. That gives it predictable revenue streams and cuts its risk. As well, more of its customers are switching from printed to electronic products; that’s lowering its printing and postage costs....