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Rogers Sugar Inc. (RSI.TO)

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#81 ·
RSI is now under $4 (closed at 3.99) with a dividend yield of 9.02%

Their income is certainly declining. The "nine months ending in June" as per their financial statements is down -43% from last year. That's a huge decline in net income and I'm surprised the share price isn't even lower. The stock is only down -8% from a year ago, adjusted for dividend.

Tough to buy a company with such weak earnings.
 
#82 ·
Trans Pacific Partnership is pretty good news for Rogers. The US will have to allow some sugar imports tariff free to Rogers as they are the only sugar producer in Canada. Looks like 19200 metric tonnes additional. Of course the US is famous for ignoring NAFTA rules so TPP agreement may be just smoke.
 
#83 ·
RSI has been totally unaffected by the TSX selloff since December. This is very interesting because RSI's yield is over 8% and most high yielding things have been just hammered since December.

What I'm reading into that is that there is no "hot money" in RSI. By that I mean, skittish speculators piling in due to yield chasing or return chasing -- they don't seem to be in RSI. Even the volume has been very normal.

I'm kind of surprised by this, and it's good news. It probably means the nervous speculators were washed out earlier during the earlier price plunge.
 
#84 · (Edited)
I still don't own any, though.

The main reasons I can't buy the stock are: (1) net income is still declining even though natural gas is at multi-year lows and (2) they have a ton of goodwill on their balance sheet, and I have no idea what this represents or how they arrived at that number. It's nearly half the assets on their balance sheet so this absolutely requires a better explanation, yet it's not described in the audited financial statements.

The risk with the massive goodwill item on the balance sheet is that if it suddenly gets revised downward, it will have an enormous effect on book value. I'm always wary of companies with large goodwill lines. Typically goodwill would be around 10% of assets. With Rogers it's 42% of assets.

The goodwill line 229,952 has been unchanged since 2006. I find it hard to believe that this line can stay constant for 10 years without any adjustments. It's just such a huge part of their valuation, yet not described anywhere. I don't like this part of the balance sheet.
 
#85 ·
They have been buying back shares pretty steady over the last year.
Hopefully they think the share price is under valued.


Jan 20/16 Jan 20/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 11,500 $4.04
Jan 20/16 Jan 19/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 5,500 $4.04
Jan 19/16 Jan 18/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 11,500 $4.05
Jan 18/16 Jan 15/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 11,000 $4.07
Jan 15/16 Jan 14/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 13,600 $4.06
Jan 14/16 Jan 13/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 15,000 $4.08
Jan 13/16 Jan 12/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 11,800 $4.05
Jan 12/16 Jan 11/16 Rogers Sugar Inc Direct Ownership Common Shares 38 - Redemption, retraction, cancellation, repurchase 14,700 $4.08
Jan 5/16 Jan 4/16 Belkin, Alton Stuart Direct Ownership Common Shares 10 - Acquisition in the public market 1,400 $4.20
Jan 5/16 Jan 4/16 Belkin, Alton Stuart Direct Ownership Common Shares 10 - Acquisition in the public market 162 $4.21 - See more at: https://www.canadianinsider.com/company?menu_tickersearch=RSI | Rogers Sugar#sthash.ivfbaCw4.dpuf

https://www.canadianinsider.com/company?menu_tickersearch=RSI | Rogers Sugar
 
#91 · (Edited)
More tonnes of sugar sold.
Cheaper cost of beets.
3 mill more profit last quarter yr/yr
forward PE of 14 while paying a huge dividend.

Its a sweet stock! (disclaimer....sugar has been shown to contribute to obesity & diabetes as well as volatility to investors...consume & purchase in moderation)
 
#92 · (Edited)
Eder said:
Well they're up 35% since this post plus a dividend...52 week high today.
Click to expand...
Total return since 2016-01-22 is approx 42%. Then again the TSX small cap index (XCS) is up 37% in that period, for context.

If you read the thread you will see I have some concerns based on fundamentals:
http://canadianmoneyforum.com/showt...m/showthread.php/13344-Rogers-Sugar-Inc-(RSI-TO)?p=979914&viewfull=1#post979914

I'd be willing to buy the equity, but not until I understand more about what I'm buying and have a better understanding of those issues. I like to know what I'm buying.
 
#93 · (Edited)
Not bad for a small value stock...(value is another name for low growth....common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio....different from general small cap) so in context it has been the Donaldson & Biyombo of value,
 
#94 ·
Eder said:
More tonnes of sugar sold.
Cheaper cost of beets.
3 mill more profit last quarter yr/yr
forward PE of 14 while paying a huge dividend.

Its a sweet stock! (disclaimer....sugar has been shown to contribute to obesity & diabetes as well as volatility to investors...consume & purchase in moderation)
Click to expand...
... I'm not so sure about the latter as greed is good in America (or Canada in this case) when it comes down to stocks but you do have an excellent disclaimer! :rugby:
 
#96 ·
^ Wouldn't that be inside information? Anyhow, quoting from latest (June 6, 2016) stock news:

BRIEF-Rogers Sugar reaches deal with workers union
June 6 (Reuters) - Rogers Sugar Inc :

* Says bargaining agreement ratified at Lantic Inc's montreal refinery

* Says all production activities will resume ,expects a return to normal activities as soon as possible

* Reached a deal with union of Montreal refinery and will be returning to work within next few hours

Source text for Eikon:

Further company coverage: (Bengaluru Newsroom)
Click to expand...
Now moving along ...
 
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