Stockchase Opinions

Sandy McIntyre Data Group Ltd. DGI-T DON'T BUY Dec 10, 2012

High-yield is always dangerous. It is indicative of a structural problem. This is not a growth industry. 29% yield and the market is telling you not to believe it.

$2.200

Stock price when the opinion was issued

paper products business forms
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BUY
Had a good 1stquarter. Have a high payout ratio. About 12% dividend yield and even if they had to cut this, it would still be an attractively priced stock.
COMMENT

Feels this is a long-term hold, primarily because of the 14.7% dividend, which seems to be stable. Business overall in the general economy has been slow coming in from new directions. Doesn't have great expectation of rising stock price on growth.

HOLD

Small company. Cash Cow. Accidentally high yield with high payout ratio. Not a barnburner of a recommendation. The assets have value.

SELL

Stock has been trading, with one exception, below a falling 200 day moving average. There are better stocks out there. If you own, consider selling and taking a tax loss.

COMMENT

Were probably sensible to cut their yield. Hasn’t any expectation of a rising stock. He is still Holding his shares.

HOLD

If you own, you are getting a really healthy dividend of about 15%. He owns it, but it is under review and he doesn’t know what he is going to do with it.

SELL

(Market Call Minute.) Hard to tell where this is going to go. Looks really cheap but it is hard to sell if there is an obsolescence issue in their business.

SELL

Thinks their business is being made obsolescence by technology. Less and less stuff is being done by hard paper and more and more is being done through the Internet. If you own, he would suggest you take your lumps, get your capital loss and move on. 22% dividend yield.

COMMENT

Sold his holdings quite some time ago. It recently made some noises about embarking on a restructuring program and cutting costs.