Here’s a Service Sector Buy

Article Excerpt

FIRSTSERVICE CORP. $29.58 (Toronto symbol FSV; SI Rating: Extra Risk) (416-960- 9500;; Shares outstanding: 28.6 million; Market cap: $846.0 million) reports 26.3% higher revenues in its third quarter ended December 31, 2006, to $374.8 million from $296.7 million a year earlier. (All figures except share price in U.S. dollars.) Earnings per share rose 30.4%, to $0.30 from $0.23. FirstService now expects earnings in the fiscal year ending March 31, 2007 in the range of $1.27 to $1.32 U.S. a share. That’s a price/earnings ratio of less than 20.0. FirstService operates in the rapidly growing service sector, providing services in the following areas: commercial real estate; residential property management; integrated security services; and property improvement services. It continues to expand profitably through acquisitions and internal growth. Both avenues still offer lots of potential for expansion in the fragmented service sector. FirstService is still a buy. buy…

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