
TSE:RSI
This summary was created by AI, based on 3 opinions in the last 12 months.
Rogers Sugar Inc. (RSI-T) operates within a unique niche characterized by an oligopolistic environment, making it a stable investment choice, though caution is advised due to emerging competition that could disrupt the industry. Experts highlight that the company has not faced annual losses since 2001 and maintains a manageable debt level with a low payout ratio. However, in an inflationary scenario, the stock may struggle as investors might favor higher-yielding alternatives, especially given the stagnation in dividend increases. Its operational resilience is indicated by minimal sales decline during economic downturns, as seen in 2008, while government quotas provide a layer of protection against market volatility. While it may not be the most exciting opportunity, it offers a steady dividend and may appeal to conservative investors seeking reliable income in uncertain economic conditions.
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.