I am continuing my review this stock (TSX-TRI, NYSE-TRI, LSE-TRIL) today as I have not yet reviewed it and the 2008 year end annual statement has came in. I also own this stock. I bought this stock in 1985. I have made a return of 7.4% per year, including dividends. This stock has gone though a lot of changes since I first bought it. Note that this company is sold on the Toronto, New York and London stock exchanges.
Now, first I will look at the Insider Buying and Insider Selling information. This information seems to say that insider sold $20M net in shares. What actually happened was that the company sold TRI shares and bought the same number of TRIL shares. Because of the price differential, they made $30M and retained the same stake in the company. The UK shares were simply cheaper. Both TRI and TRIL shares are treated the same by the company. So the bottom line is that what appears to be high net selling is not and is not a problem.
I had updated my spreadsheet for the 2nd quarterly report of this company. All my ratios are based on CDN currency. This company has done better in US currency. For 2009, I have a P/E of 18 based on earnings estimates. Others have it around 16 based on earnings over the last 12 months. Both of these P/E ratios are lower than the 5 year average of 22 or 5 year low average of 19. The dividend yield 3.5% is higher than the 5 year average of 2.5%. The Price/Book Value ratio is only 55% of the 10 year average. The current stock price is about the Graham Price.
All the above items point to a relatively good current price. The other good thing is the Accrual Ratio is negative. This Ratio is currently -1.4%. This particular ratio does not depend on the currency, as it is the same no matter what currency you use.
In looking at the charts, this stock has not done as well as the TSX over the long term. The problem, as I mentioned yesterday was it had not recovered from the last bear market, let alone this one. It never boomed as the TSX did starting in 2002. It also never fell as much as the TSX did starting in 2008. It also has not recovered as well as the TSX has recently.
Now, I shall go on to the analysts’ recommendations. There are a lot of analysts following this stock, both here and in the US. However, their recommendations are spread over the 5 categories of from Strong Buy to Sell. So the mean recommendation would be a Hold. (See my site for information on analyst ratings.) But it is very obvious from looking at the recommendations that there is a very wide divergent of views on this company. Personally, I am current going to hold on to my shares, but I am keeping an eye on this stock.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. They combine industry expertise with innovative technology to deliver critical information to leading decision-makers. Through more than 50,000 people in over 100 countries, they deliver this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world’s most trusted news organization. They derive the majority of our revenues from selling electronic content and services to professionals, primarily on a subscription basis. Thomson and Reuters amalgamated in 2008. Its web site is www.thomsonreuters.com . See my spreadsheet at www.spbrunner.com/stocks/tri.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.
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