Topic: How To Invest

Stock Pickers Digest Hotline – Friday, May 19, 2017

Article Excerpt

DOREL INDUSTRIES INC., $33.88, symbol DII.B on Toronto, makes a range of items: ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, toddler beds and cribs; and bicycles and other sporting goods. In the first quarter ended March 31, 2017, sales rose only slightly, to $646.7 million from $645.9 million a year earlier (all figures except share price in U.S. dollars). However, Dorel’s earnings, excluding one-time items, climbed 15.4%, to $22.7 million, or $0.70 a share, from $19.7 million, or $0.61. The gains came from improved profit margins at Dorel Home and Dorel Sports. The company’s Juvenile business has also performed well in Brazil and Australia, where Dorel is now a market leader. Still, its operations in Brazil carry above-average currency and political risk. That includes the company’s 70% stake in Caloi, one of Brazil’s biggest bicycle makers. In addition, Dorel gets a high 30% of its overall revenue from Wal-Mart, which also carries risk. However, the company continues…