
TSE:RSI
This summary was created by AI, based on 3 opinions in the last 12 months.
Rogers Sugar Inc. (RSI-T) operates within an oligopolistic market, which provides it with a measure of security; however, the emergence of a new competitor poses potential risks to the industry. Experts express concern regarding economic conditions such as stagflation and inflation, which may lead investors to consider higher-yielding alternatives, especially since the company hasn’t raised its dividends recently. Despite these concerns, Rogers has maintained a solid financial record with no annual losses since 2001 and a manageable debt. The company benefits from sugar quotas that currently appear secure, making it relatively insulated from economic fluctuations. Overall, while it may not be the most exciting investment, it offers a reliable 5% dividend, appealing to dividend-focused investors looking for stability rather than high growth.
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.