Tuesday, January 20, 2015

TELUS is Communicating a Higher Stock Price

TELUS (TU), based in Burnaby, British Columbia, is the largest telecom carrier in Western Canada. The company is a leader in wireless, landline, and Internet services for both voice and data, serving over 13 million customers north of the 49th parallel.
This company has several features which makes this a great investment, including rising sales, spiking earnings, an increase in the number of subscribers, and a hefty dividend that was recently raised. Let’s examine these features in detail, which can make this stock move higher.

Rising Quarterly Revenues and Adjusted Earnings
The company’s revenues and increasing earnings are two catalysts that will boost the stock price. For the first time ever, the quarterly revenues for the third quarter of 2014 exceeded $3.0 billion, jumping 5.4% from the same quarter for the prior year. [All numbers in Canadian dollars.]
In the last couple years, many telecom companies have falling revenues for landlines but make it up with wireless revenues. Not TELUS; the company has generated rising sales for both the landline and wireless sides of the business.

(C$ millions)
9/30/13
9/30/14
Increase
Revenues
2,874
3,028
5.4%
Adj. Net Income
365
387
6.0%

In regards to earnings, adjusted net income increased by 6.0% to $387 million. Basic earnings per share for the quarter went up by 3.6% to $0.58, and if you look at adjusted earnings, they improved to the tune of 10% to $0.64.

(C$)
9/30/13
9/30/14
Increase
Net income/share
0.56
0.58
3.6%

The stock trades at 18.9 times earnings, which is less than the industry average of 20.0.

Customer Growth and Retention
TELUS generated an incredible 136,000 net new customer connections, plus it produced outstanding record lifetime revenue per customer. In addition, the company has an extremely low record churn, the customer loyalty rate, of 0.9%, for postpaid customers.
The company has very strong customer focus, which helps the company obtain and retain customers. According to Darren Entwistle, the TELUS Executive Chair, “Complaints against TELUS have declined 53 per cent since 2011. Notably, this is the third consecutive year that TELUS has had the lowest number of complaints amongst Canada’s major carriers, reflecting the power of our customer first culture in action.”

Share Repurchase Program
One stalwart driver that can move a stock higher is a share buyback plan. It reduces the number of shares, making each share more valuable from a percentage ownership, plus the buying helps create a floor under the stock price. The company has a share repurchase program in place and completed its purchase of $500 million for 2014.
The company announced that it would accelerate the start of the 2015 stock buyback program by purchasing up to $500 million in additional TELUS shares.

Dividends
Here is something long-term investors would like, a high dividend, plus a rising dividend policy. Currently, the yield on the stock is 3.9%. The quarterly dividend was bumped up by 11.1% year-over-year to 40 cents per share, which is the eighth increase since May 2011.  The company has a policy of raising the dividend twice a year.

Conclusion
The growth of the company should continue, as long as economic growth continues in Canada, which should happen according to he Bank of Canada’s October 2014 Monetary Policy Report.  As a review, TELUS has generated significant growth in earnings and revenues, rising customer growth, a reasonable price to earnings ratio, and a high yield with a rising dividend guideline. The company management has a way of getting customers and keeping customers. All of this will filter down to the stock price, causing it to rise higher, making it a great buy for growth and income investors. If you are looking for other Canadian stocks, check out the free list of Canada stocks at WallStreetNewsNetwork.com.

Sunday, January 18, 2015

Debt Free Stocks Selling Below Cash per Share

For investors that want to reduce risk, finding debt free stocks trading below cash per share may be the way to go. Companies without debt are a safe bet; it's hard for them to go out of business unless they have an extremely high burn rate.

But if the company is trading for less than the amount of cash per share, it makes the stock a super buy. The cash per share is calculated by taking the total amount of cash and cash-like securities, divided by the number of shares. Here are a few stocks that meet this criteria.

BroadVision, Inc. (BVSN) closed at 5.56 a share on Friday, but has $8.22 per share in cash. This Redwood City, California company makes and sells enterprise portal applications. Plus the company is free of debt.

Ceres (CERE) produces and markets energy crops to produce renewable bioenergy feedstocks. The stock closed at 23 cents a share, with 45 cents a share in cash. The company does have a small amount of debt, approximately $55,000.

Deswell Industries (DSWL) is a Macau based company that makes and markets injection-molded plastic parts and components. The company has 2.38 in cash per share but closed at 1.88, plus it is debt free.

Ambassadors Group (EPAX) organizes and promotes worldwide educational travel programs for students. The stock is at 2.59, with 2.77 in cash per share. The company has no debt.

If you like stock lists like this, check out the numerous stock lists at WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Stocks Going Ex Dividend the Fifth Week of January


Here is our latest update on the stock trading technique called 'Buying Dividends,' also commonly referred to as 'Dividend Capture.' This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, and the yield.


Cal-Maine Foods CALM 1/26 3%
Clorox Co. CLX 1/26 3%
PNM Resources PNM 1/26 2.7%
Ames National Corp. ATLO 1/28 3%
Brookfield Canada Office Properties BOXC 1/28 5%
ConAgra Foods CAG 1/28 3%
Full Circle Capital Corporation FULL 1/28 17.7%
Lifetime Brands LCUT 1/28 1%
Pentair Inc. PNR 1/28 2%
Scholastic Corp SCHL 1/28 2%
STAG Industrial, Inc. STAG 1/28 5%
Student Transportation Inc STB 1/28 9%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WSNN.com. Most of the lists are free. 

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Book now available: Buying Dividends Revised and Expanded

Book now available: Stock Market Trivia Makes a Great Gift!

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

The Man in the High Castle

I am not a big fan of science fiction, either books, movies, or TV shows. However, one of the few science fiction books I have read is The Man in the High Castle, by Philip K. Dick. The story is about what would have happened if Germany and Japan had won World War II. Germany is in charge of the eastern United States and Japan is running the western states.

It is a fascinating story, and really interesting to read about how business, industry, customs, cities, and people would be totally different under a fascist leadership.

I had actually thought that this was a forgotten book. Many of my friends had never even heard of it. However, I happened to go on Amazon (AMZN) and saw that The Man in the High Castle is now a series as part of the Amazon Pilot program, whereby the first episode is produced, and Amazon viewers vote on which of the various proposed series they want to see more of.

The first episode has five stars from Amazon viewers and is rated 8.7 out of 10 on IMDb. I highly recommend the Amazon Prime pilot and the book. By the way, the book has an interesting twist with I haven't seen in the series yet. I don't want to write about it because I don't want to give any more away.

Get the book and watch the video; you won't be disappointed.

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