Today, Alex Ruus and Stockchase Insights commented about whether RSI-T, MGA-N, TCN-T, LNR-T, LIF-T, ON-Q, CJT-T, LSPD-T, RNW-T, ATS-T, CPG-T, CHR-T, WCP-T, MGA-N, KEY-T, SBUX-Q, BIR-T, CTS-T, GSY-T, SU-T, TOU-T, PIF-T, EFN-T, ENB-T, FRU-T are stocks to buy or sell.
TCN has $5.6B in debt, certainly an amount that can be considered high vs cash flow.
TCN has managed debt well. $3.8B of its debt is fixed rate.
It has collars and caps on its floating rate debt, and its effective interest rate last year was 3.36%.
This will increase somewhat, but because of its hedging it is less vulnerable to rates than others.
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MG has a decent enough balance sheet, with net debt about 1.6X annual cash flow.
Dividend payout is in the 25% range and we would not expect a cut.
Three years is a long forecast time, but analysts show close to $10 in EPS in 2026, so if that is realized the stock is very cheap and is likely to do better.
But it has had a series of bad announcements, and we would expect the company to be in the penalty box for at least several months now.
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EPS of 15c beat estimates of 12C. Revenue of $261M beat estimates of $246M.
EBITDA of $33.5M beat estimates of $28.9M.
Sales volume guidance was increased, with strong sugar demand and pricing.
The Maple segment is expected to do better as unfavourable conditions of last year subside.
These earnings are solid.
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Investing Behavioral Biases: Cognitive & Emotional. To simplify the classifications, a cognitive error can be defined as an information processing error (statistical and/or memory). It is often the result of faulty reasoning. Conversely, emotional biases are much harder to correct because they stem from impulse and/or intuition. Often an investor needs to first recognize these issues, then find a way to minimize the effects. One cognitive bias I see every day in the financial world is called anchoring bias or the anchoring effect. Anchoring bias can be defined as "relying too heavily on an initial piece of information offered when making decisions".
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Good Canadian company.
Will perform well over the long term.
Has out performed the market the past few years.
Automation demand growing.
Multiples a little high, but deserves success.