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TSE:MSI

Morneau Shepell Inc (MSI.TO)

32.25
+0.10 (0.31%)
as of May 19, 2021, 8:00:00 pm Market Open.
62 watching
0
HOLD

Has been going sideways because there is not a lot of growth in this. That happens by the economy growing or be acquired. He is happy to own it. Yield is 6%.

PAST TOP PICK

(A Top Pick Oct 24/11. Up 43.98%.) Pension fund and benefits consultant company. Not really economically sensitive. Nice yield. Not a great bargain here because it has had a great run. Hold.

BUY
Consulting company for pension funds. Good, safe yield of 6%+. It is fairly illiquid so today’s spike is probably just more buyers than sellers. Well-managed company. At levels not seen since 2008.
TOP PICK
Human resources, outsourcing, pension fund, benefit administration, etc. 8.4% payout, which is reasonably safe. Some growth. Can see it getting back to the $10.50+ area.
PAST TOP PICK
(A Top Pick July 09/10. Up 13.17%.) Good steady income if you are looking for income.
COMMENT
Consultants in the financial industry, which is a growth area. Over time they will do well. Recently converted from an income trust so distribution has been impaired and will take awhile to grow back to where it was. Have been gaining market share.
COMMENT
Recession resistant and had fairly consistent numbers during the pull back in the economy. Would prefer names that have more influence in terms of the actual recovery.
DON'T BUY
Pension benefits consulting. Long term contracts. Good customer retention. Debt level is about 2.9X debt to EBITDA. Have to come down to 2.5X by June 30/11.
BUY
Pension consulting and employee assistance services. Some of the run company. Like that long-term but short-term is a matter of getting momentum in quality of earnings and performance.
HOLD
Would continue to hold. More recent results disappointed market. Are a significant and growing player in the financial services sector. Distribution will have to be tax adjusted when they convert.
PAST TOP PICK
(A Top Pick June 8/09. Up 13.22%.)
TOP PICK
Largest Canadian owned/based benefits and actuarial company. Help companies manage pension benefits, HR issues, health issues, etc. Very profitable business. When they convert to a corporation, they will cut their distribution in such a way that the after-tax amount will be the same.
PAST TOP PICK
(Top Pick Jun 8/09, Up 10.78%)
PAST TOP PICK
(A Top Pick March 30/09. Up 46.94%.) Still a buy.
DON'T BUY
Pension benefits consulting and healthcare plans for big 500 Fortune companies. Big acquisition ruined their balance sheet so growth is going to be constrained, as they have to pay off their debt. Will have to cut distributions when they convert and doesn't know if there'll be a lot of money left over.
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