I am reviewing this stock (TSX-SC) today as I have not reviewed it since January 2009 and the 2008 calendar year end annual statement emerged in later. I bought this stock for my new Tax Free CHECKING ACCOUNT (TFSA) in January 2009. To day, including dividends, I have made some 24% return.
I find that the quantity of Insider Selling is a concern. This offering is by the CFO and other Officers. The CEO will not seem to be selling, but he has few shares. The Directors, who own a more significant amount of stocks, do not seem to be selling either.
A lot of the offering is of options. Insiders seem to own an awful lot of options and little amounts of shares. There is no Insider Buying at all. 15 Million within the last season. I understand of traders who would make investments in any company with insider offering never. I recognize that you know insiders feel confident in a stock they are buying and also you never know why people are available. People sell shares for a lot of reasons that can be unconnected to the stock.
- RBI’s Role in Economy
- Guide to Insurance
- As a busy executive, I appeared for an extended established monitor record
- Patrick Dorsey, CFA, Director of Equity Research, Morningstar, Inc
They could just need the amount of money. However, with this stock, you have to question if the insiders have any self-confidence in the future of the company when they are available so much. With all the insider offering being handled, I want to look at the actual spreadsheet ratios and the Graham Price is telling us. The existing price is more than 30% greater than the Graham Price.
On growth stocks and shares, which this is, the Graham Price is quite less than the stock price often. On growth stocks the stock price seldom, if hits the Graham Price. With this stock, the difference between your stock price and the Graham Price is less than usual, so that it points to a comparatively good price, but not a truly good price.
The only proportion that appears good is the Price/Book Value Ratio. This ratio is approximately 85% of the 10 calendar year average. I think a buy transmission would show this percentage at 80% of the 10 year average, but 85% is not bad. The other thing has been that the Accrual Ratio for the 2nd quarter is now negative and this is a good sign. I believe that all this stuff points to an acceptable stock price. However, it generally does not indicate a great stock price.
When I take a look at analysts’ suggestions, the consensus is a Buy. There are very a few experts that follow this stock. There are plenty of Strong Buys and Buys and some Holds with this stock. No analysts’ reports I reviewed portrayed concern with the amount of insider selling happening.
If you look at the charts, this stock has done as well as or much better than the TSX index in intervals of 5 years and less. Plus you’ll get a little extra with their dividend. In the event that you look at the 8 years that this stock has been around the TSX, it has done much better than the TSX. I am keeping my stock for the short minute.
This purchase was to test this stock and since it was for my TFSA accounts, I did so not buy much. I am concern about the quantity of insider offering still. WHILE I put more money into the TFSA for 2010 2010, I’ll have to produce a decision with this stock.