I can only guess people expect poor earnings to be announced.

 

don't know, don't care, long term holding (forever hopefully). each:

 

ya i guess it must be that, can't see any other news, moving back up a bit now

 

BEaver101....totally agree just was thinking of adding more and wanted to make sure I wasn't catching a falling knife

 

Held this small-cap for a couple years now ... went down right after I bought it but it recovered nicely plus collecting the dividends in the meantime. Can't come close to set it and forget it ... this industry (sugar-refinery) ain't going away anytime soon.

 

The Board just declared a special dividend of 36 cents per share to be paid to shareholders of record on February 8th, payable on or before February 28th

http://finance.yahoo.com/news/rogers-sugar-inc-interim-report-213000689.html

Sweet!

Get it...?

 

The stock will almost certainly rise at least 36 cents tomorrow to reflect the special dividend.

 

.. and I have no problem with that ... just surprising sweet news :encouragement: ... now I can go get a Big bag of gummies to last me for the next "special" dividend or a raise, hoo, hoo! ... or maybe not, if they implement a DRIP before that :biggrin:

Echo: ... Get it...?

... in my overexcitement, I forgot to post something for Echo for this headsup announcement so Thanks Echo! And cheers!

 

Wow...I thought sugar was having a hard time recently but a special dividend is always welcome.

 

What are the latest thoughts on this one? Price has come down a bit so I'm starting to think it could be a good time to get in. Need to take a look through the financials though. Dividend is also looking attractive.

 

Sweet, thanks for the alert. I'm taking out my grocery carts again on this one, time to load up. (I'm a lazy investor). :biggrin:

 

After EPS of $0.47 in 2012, they are on track for a lower EPS of $0.37 this year. In the last year, they made a big special dividend of $0.36 and maintained their quarterly dividend of $0.09 a share throughout, so a quick look at their book value shows a decrease in shareholder equity from $282M to $242M in the last 12 months. I don't see a huge opportunity here, the price could easily fall to 2011 levels when it traded around $5.00 to $5.15. A P/B of 2 would be $5.10 a share which would be a P/E of 13.7.

 

Not a big fan of this one...more like a penny stock....but very tempting to buy closer to $5.

 

... may I ask what's one's definition of a penny stock that one is not a fan of? A tempting price below $5 or above $5?

Eder: ... I don't think it will get there though.

... agree, a quick look up shows the last time this stock touched a $5 low was Oct. 11, 2011 (which I did not get - bought close to $6 around Christmas 2011).

 

I own a lot of this...income stock ...sugar is under pressure short term but I like 6% tax advantaged income...I think $5 or so is a great spot to load up...I dont think it will get there though.

 

That's probably a bit severe, the penny stock moniker. I see RSI as a speculative stock, that's all, but I suppose most smaller cap stocks are like that.

I'd like to buy more larger caps before smaller caps. Got my eye on more CPG, COS, TD and NA.

 

RSI is speculative small cap? Yikes, I got them in my RRSP ... mabye my next cart-load should go under a non-registered account to harvest the tax advantage as pointed out by Eder.

Re those large caps, I own none of them. But then that's me, different strokes for different folks.... cheers! eaceful:

 

Considering adding to my position here but I'm a little worried about such a high dividend. They had that special dividend earlier in the year. Are they likely to chase that with cut?

 

Its payout has been ~100% the past couple years and free cash flow is down quite a bit compared to last year. I wouldn't go as far to say I am certain the dividend will be cut, but signs are present.

 

They also issued a release that the EU free trade deal opens up some markets for them.That was a week or 2 ago and the stock rebounded a bit.

 

Article here to help you decide (I own a ton of this)

http://seekingalpha.com/article/1851791-will-rising-sugar-prices-be-sweet-news-for-rogers-sugar

 

Eder, do you hold it for the income or are you bullish on sugar prices / this specific company?

 

I hold this for income. Sugar use per capita seems to be declining long term and markets are very protected.

 

Before jumping in, I would take a close look at the trade deal to be sure there were no negatives. Rogers benefits from import tariffs as they process everything in Canada. Not sure if they are a "low cost" producer or how they stack up against international companies.

 

If I'm not mistaken, most sugar processed in NA is from sugar beets.

 

Nope....only about 10% of Rogers production comes from beets....rest from processed cane imported.

 

If this is the case, RSI would BENEFIT from struggling emerging market currencies.
Eder, where's your info from?

 

My statement is probably still true, given the tariffs the US places on sugar imports.

I always thought that refined sugar is always produced close to market because:
-raw sugar (cane or beets) is bulk cargo and cheap to store and transport
-refined sugar is heavy and relatively low value, and costlier to store and transport

Same kinds of reasons that cement is usually produced close to where it is used.

 

I just looked up the sugar yields from beets vs canes and they're very comparable. Why wouldn't RSI use more beets in its production? Building off andrewf's comment, wouldn't transportation costs and tariffs outweigh the cost savings of labour in the sugar cane countries?