DH Corporation (DH.TO)

DON'T BUY
They make cheques for banks. More electronic banking is being done so you have to wonder that when this changes into a corporation will there be any growth.
BUY
Bad news of a distribution cut because of the conversion in 2011 is already built into the stock. This will become a high dividend yielding equity. 13.1% yield.
HOLD
Have a relatively steady cash flow that is pretty dependable, which would be attractive to a lot of potential buyers.
BUY
Originally did cheque printing but have supplemented this with various other businesses such as software for mortgage brokerages. Good management. Yielding of about 13% will probably be reduced when they convert to a Corp.
HOLD
Some people would argue that bank cheques are a declining industry. Recently acquired a business processing services company. Extremely well managed. 14.7% yield. Fairly high payout ratio.
BUY
(Market Call Minute) Going to do some good things with their cash flow going forward. Good stead-eddy company.
BUY ON WEAKNESS
Very stable industry over the years. Have some exposure to the mortgage market through a subsidiary. Has added to his holdings on dips. He'll continue to own this through their conversion to a corporation.
TOP PICK
Dominant cheque provider for the major Canadian banks. Cheque business is declining but this is a mature business and generates a lot of free cash flow. Paid down debt and diversified into mortgage software. Expecting a rebound into 2010. 12% yield should be sustainable.
COMMENT
Cheque business is a steady cash flow type of business. Have hung in relatively well compared to their peers. 12% yield.
STRONG BUY
Cheques are their core business. This would have been his 4th Top pick. Good balance sheet. Payout ratio of about 82%.
BUY
(Market Call Minute.) Just came out with very strong results. Likes the business. Fairly recession resistant.
TOP PICK
Dominant supplier of cheques to Canada's leading financial institutions. The selloff in February was overdone. Recommends a Partial Buy now and if it sells off more, add to it.
COMMENT
Cheque printing, etc. Steady growth. In this kind of market, this is the kind of business you want to be in. Just took a big drop but he doesn't know why.
PAST TOP PICK
(A Top Pick Dec 15/06. Up 35.7%.) 8% yield. A safe, stable business. Cheque volumes have been quite high in Q2 and Q3. Also acquired an acquisition mortgage brokerage services. Doesn't feel the growth in 2007 is sustainable in the long term and the company is targeting a 3% to 5% growth rate. Still likes.
PAST TOP PICK
(Up 10.8% since September 2006) When he had picked it they had just made a substantial acquisition, in the mortgage brokerage services. Since then the market has softened.
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