
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 logistics space and has recently faced significant challenges, including a drastic 18% drop in share prices following disappointing earnings results. The company's dependency on weather patterns for propane, which is considered more volatile than natural gas, poses a risk due to seasonal pressures on margins. While there have been positive signals, such as a new data center contract in the US and recent acquisitions into compressed and renewable natural gas sectors, questions remain regarding management's credibility and the effectiveness of their efficiency programs. Despite the potential for growth in alternative energies, erratic earnings and long-term returns have left investors cautious, leading to a yield of approximately 2.5%. The general sentiment suggests that while the business provides some stability, it has struggled to deliver consistent shareholder value over time.
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.