[Sherlock]

This is an engineering company based in Quebec. The bulk of their work is building things for the government.

The yield is over 7% but the shares are at a 52 week low right now.

I've been googling about it and the analysts' comments on it seem to be overwhelmingly positive, with the general consensus being that it's a very well-run company with good prospects.

 

[doctrine]

Their 12 month trailing earnings are $0.95 per share. The 12 month trailing dividends declared are $1.50 a share. That is why the stock price is low. Might be a good idea to keep an eye on it, there is only one bad quarter in there that really hurt them.

 

[HaroldCrump]

All construction and engineering companies are beaten down right now.
Look at Churchill (CUQ) and Aecon (ARE).
Stantec is about the only one holding its ground.

Any construction company with business in Quebec and Ontario should be handled with care these days.
We don't know if the corruption and kickbacks scandals are over yet.

Even the slightest hint of a corruption allegation against any of these companies will decimate their stock price.
Investors have very low pateince and tolerance these days.

 

[My Own Advisor]

@Harold,

All the more reason to initiate a position perhaps? Sector has been beaten up. Not much dividend history though:

http://www.dividendchannel.com/symbol/gnv.ca/

 

[humble_pie]

td securities rates only 3 companies out of its construction group Buy & of these 3 only genivar has a medium risk weighting. The other 2 buys - aecon & snc - are rated high risk.

re stability of GNV's dividend, perhaps it's worth reflecting that GNV used to be a unit trust that historically paid out a large special dividend at the end of each year, in addition to stable & regular monthly distributions throughout many years of history. That special year-end dividend stopped upon conversion to a corporation. However it's worth remembering that genivar's shareholders have been accustmed to large, stable & regular dividends, so the practice is probably one that the company will try to protect.

in recent months both the caisse de depot du quebec & the canada pension plan investment board bought more than 7,000,000 shares & each received stock dividends on these shares, to each hold more than 7,600,000 shares today. Neither have sold anything.

 

[doctrine]

http://www.theglobeandmail.com/glob...ppropriate-conduct-at-company/article8435335/

I would flee at a great rate of knots on this one.

 

[HaroldCrump]

I would flee at a great rate of knots on this one.

Stock is up $0.20.
We need more corruption.

 

[CanadianCapitalist]

I would flee at a great rate of knots on this one.

In some instances, that would be wise. But more often than not, is it not better to buy when the news surrounding a business is negative?

 

[doctrine]

Just saying, that I'd rather not be involved in case the cockroach theory applies (you find one, there may be more). Or, it could be okay. I was not a buyer anyway because of their low earnings and 150% payout ratio.