I have been holding of Stella Jones for a while now and I am up 35% and not overweight in my portfolio. Since Stella Jones makes Ties for the railroad track and that CP and CN are down as well, is there any correlation between the three operations? If not why SJ is Down?
Q: SJ Down 5% today.Is there any specific news or because of a poor market?It has been a great performer reaching a $54 high in Dec.I bought it @ $27.50--thanks to your recommendation-,so should I take some profit now in this market,do nothing or buy more.It is about 3% of my portfolio & in my RSP a/c.Appreciate your normal great services & views.
h
Q: In a response to a prior comment on this stock you mention how SJ anticipated "the upswing in the spending cycle" I guess for poles and ties. Your April report forecasts a 1 year Revenue growth of 10.4% vs 5 year growth of 25% p.a. and a more recent (Nov.) TD report of forecast 18% growth for 2016, which I can assume is partly extraordinary FX gains to date and partly acquisition based since Apr. What I wonder about is just how cyclical is this business and what a decline in the spending cycle of utilities and railroads might look like. TD forecasts only 7% YOY Revenue growth of 2017 vs 2016 but does not take into account any M&A activity. When was the last downturn in this business and how long did it last? I note they grew EPS in 2008/9 but were a much smaller outfit then. Thanks, J.
"McCreath sees the supply of oil as being the key determinant as to whether the Canadian loonie hits US$0.65, taking stocks down with it, or a perceived recovery of oil prices into 2017 enables Canada to outperform." Your thoughts and to What CDN companies do you like most that are US currency friendly? I will find it even harder to invest in good US stocks for 2016 (i.e. Disney, Costco, Monster Bev etc) since we'll lose out on the currency rate this year.
Q: The 5-year chart on SJ is classic, and your report is positive, but it is expensive now. How much has the PE multiple expanded on this stock over the past 5 years, and what has been the rate of earnings growth? Has it kept up to the stock price?
Q: Just a note I recall reading approx. 1.5 years ago about SJ that came from SJ themselves.
SJ who makes hydro/telephone poles & railway ties out of wood said that the ~25 year life span of these items (my bad memory, but I think it was 25 years or it could have been a little longer) would need replacing starting in the next year or so, N.A. wide in general. This represented millions of pieces.
Since SJ is a major player in this industry SJ predicted , as could almost anyone who was aware of this scenario, that SJ would have increased volume and profits as a result for the next few years, which typically grows their stock price as we have started to see.
Ya, SJ.
Have a great day.
Also Loving the volatility of many stocks these last few days. Easy to make 5% to 15% in a few days with some extra cash based on technicals, for now rather safely.
Q: I am looking for solid Canadian dividend payers with a large proportion of their income/cashflow (40%+) from US and International operations.I already own BNS,PWF,SLF,GWO,TRP,EB,ENF,VET
BIP.UN,BEP.UN,BPY.UN and DH. I believe all of these fit the bill - do you agree and can you suggest some others. Many thanks
Q: Hi, Stella-Jones stock has been quite strong for past 2 weeks with all time intra day high of $52. I also noticed some fairly large block trades starting at $49.75 and recently at $51.50. Do you think there is some new institutional interest in the company? Ram Forest Group is engaged in supplying timber to US residential homes market. Is this a positive ? How is the valuation of stock, versus, growth prospects of various segments of its business, railway ties, poles, residential lumber etc? I have a 3% position and considering to build up to 5%. Should I wait for the stock to settle ? Thank You
Q: On Sep 28,You chose the following stocks for my risk aversed 27 yr old daughter:SJ(Investment a/c),POW,CGX & ATD.B(Rsp)& CSU,BIN,MG & GIL(Tfsa).Please advise if the selections are still effective & any changes.Is this a good time to star?.How much has the strong gain in October taken from November & the rest of the year? Appreciate your usual great services & views
Q: I just recommended the following to a niece who currently has ALL mutual funds . She wants some growth and income, but probably never wants to look at her investments . As she is likely to continue owning mutual funds, I suggested that she should start a brokerage account and buy the following bit by bit .
1. FINANCIAL BANKS ... BNS, TD or RY
2. FINANCIAL INSURANCE ... SLF or GWO
3. ETFs… XSP, CDZ in Canada , or VGG
Q: Both SJ & Byd.un are to be added to TSX composite.I understand your reply on the latter today. A question--Will it results in more volume temporiarly as there is a requirement for some to buy stock added to the composite?.Appreciate your normal great services & Views. P.S.Saw Ryan on BNN today
Q: I bought half a position on the recent dip but it seems to have recovered. Would you buy another half now or wait for another dip? I suppose this is one of those technical analysis questions and its probably like asking what the result of a coin toss is in advance but I thought you might have better insight than me on picking an entry point. I tend to be terrible at it.
Q: Good Morning. Is Stella Jones in Materials Sector. I typed in this question before, but don't see the 'your question has been sent' notice. If this is a repeat, please ignore. sarah