
TSE:RSI
This summary was created by AI, based on 3 opinions in the last 12 months.
Rogers Sugar Inc. operates within an oligopoly, which provides it some level of market stability; however, the emergence of a new competitor raises concerns about potential disruption in the sugar sector. Experts caution that rising inflation or stagflation could negatively impact the company's appeal as investors might search for higher-yield alternatives, particularly since Rogers hasn't increased its dividends recently. Despite these risks, the company has maintained a solid performance with no annual losses since 2001, and its manageable debt with a payout ratio below 30% indicates a certain level of financial resilience. The company benefits from protected sugar quotas that seem secure for now, making it a reasonable option for dividend investors seeking steady returns, though expecting significant growth would be inappropriate.
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.