
TSE:RSI
This summary was created by AI, based on 3 opinions in the last 12 months.
Rogers Sugar Inc. operates within a stable oligopoly in the sugar sector, although recent competition from a new player raises concerns. Experts point to the potential negative effects of stagflation or inflation, as investors might favor higher-paying investments, which could diminish Rogers' appeal due to its stagnant dividend growth. Nevertheless, the company boasts a strong historical performance with no annual losses since 2001 and a manageable debt level, supporting a payout ratio under 30%. While some describe the stock as too boring, it's viewed as a solid option for dividend investors seeking stability rather than high growth. The consistency of its dividends and protection from government-imposed sugar quotas further reinforce its position in the market.
They were allowed to export sugar this year and have export tariff protection. Going forward they will not be able to export a lot of sugar. There will be little growth. Raised dividend this year. Little earnings growth in 2013, but free cash flow is growing and we may see another dividend increase next year. 6% now.
One of the reasons this company has done so well is that their main input is natural gas. Has a tariff protection until 2015. Have been able to sell sugar outside of Canada because there has been a shortage in the US and Mexico. No longer a Buy. Will probably do some selling if the stock goes any higher.
Was some very strong resistance at around $6.70. Recent low has not taken out the last low so you can’t say it is in a downtrend. Seems to be forming a top which could be a double top. He would not own this one now as there are some signs of danger.