I am critiquing this stock (TSX-SC) today as I have not reviewed it since January 2009 and the 2008 season 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% come back.
I find that the quantity of Insider Selling is a concern. This selling is by the CFO and other Officers. The CEO does not look like offering, but he owns few stocks. The Directors, who own a more substantial amount of shares, do not appear to be selling either.
A lot of the selling is of options. Insiders appear to own a lot of options and little amounts of shares. There is absolutely no Insider Buying whatsoever. calendar year 15 Million within the last. I know of traders who would make investments in any company with insider selling never. I realize that you understand insiders feel confident in a stock these are buying and you also never know why people are selling. People sell stocks and shares for a lot of reasons that may be unconnected to the stock.
- RBI’s Role in Economy
- Guide to Insurance
- As a occupied executive, I appeared for an extended established monitor record
- Patrick Dorsey, CFA, Director of Equity Research, Morningstar, Inc
They could just need the money. However, with this stock, you got to question if the insiders have any confidence in the foreseeable future of the company when they are available so much. Using the insider offering being dealt with, I want to look at what the spreadsheet ratios and the Graham Price is telling us. The existing price is more than 30% greater than the Graham Price.
On growth stocks, 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 ever. With this stock, the difference between your stock price and the Graham Price is significantly less than usual, so that it points to a good price relatively, but not a truly good price.
The only proportion that appears good is the Price/Book Value Ratio. This ratio is about 85% of the 10 year average. I believe a buy signal would show this proportion at 80% of the 10 calendar year average, but 85% is not bad. The other thing is with that the Accrual Ratio for the next quarter is now negative and this is a good sign. I believe that all this stuff points to a reasonable stock price. However, it does not point to a great stock price.
When I take a look at analysts’ suggestions, the consensus is a Buy. There are quite a few analysts that follow this stock. There are plenty of Strong Buys and Buys and some Holds on this stock. No experts’ reviews I reviewed portrayed concern with the quantity of insider selling going on.
If you look at the charts, this stock did as well as or much better than the TSX index in intervals of 5 years and less. Plus you would get just a little extra using their dividend. If you look at the 8 years that stock has been around the TSX, it did much better than the TSX. I am keeping my stock for as soon as.
This purchase was to try out this stock and since it was for my TFSA account, I did not buy much. I am concern about the quantity of insider selling still. ONCE I put additional money in to the TFSA in 2010 2010, I will have to produce a decision on this stock.