
TSE:SPB
This summary was created by AI, based on 5 opinions in the last 12 months.
Superior Plus Corp (SPB-T) operates primarily in the propane market, which exhibits considerable volatility largely influenced by weather conditions and seasonal fluctuations. Recent earnings reports have raised concerns, resulting in an 18% drop in share price and suggesting potential management credibility issues. The company’s operations extend into logistics for propane and other fuels across North America, but guidance has shifted from an optimistic 10% growth outlook in the U.S. to a more concerning negative 5%. Although the company has entered the compressed natural gas and renewable natural gas sectors with recent acquisitions, its historical earnings have been erratic, with a decade-long compounded shareholder return of just over 1% and a minimal 0.5% return over 20 years. While the business appears stable and generates consistent income, experts are cautious about its volatility and future growth prospects.
Pull back is about “the herd” and is not stock specific. With their margins improving, their comp annual growth rate over the next couple of years and reduced leverage, there is a good shot they can increase their dividends up to 50% over the next 3 years. They say they can grow their business 7% -10% over the next few years. Margins are improving. Payout ratio is safe. 5.4% dividend yield.
Debentures (SPG.DB.G) maturing Oct 31/16 and callable Oct 31/14. Should I Sell, convert to common shares or hold to maturity? All convertibles seem to be very expensive these days so you should look at converting them. (You can email him at [email protected])
Stock has been on a real tear. On a “sum of its parts” basis, he thinks it is worth $13 so has more upside. Feels investors are responding to their improving balance sheet, a more sustainable dividend, higher propane prices and higher US demand for propane. Market also likes their 2 other businesses. 4.8% yield.
(Top Pick Jan 24/13, 5.28%) Pretty good dividend. He recently bought more. Recently had a setback that will delay some growth. He would still own this. Dividend is safe. Could see dividend move up in 24 months.