On june 30th 2015, Jason Donville had a new name on his top pick's list: Tucows (TC on the TSX or TCX on the NYSE).
I never heard the name of the company before. And, a year ago, I wasn't particularly interested in the name. Like a lot of people, it seems. Because nobody seems to be interested in that company wherever the funk I go on the web.
But, as many people, once Jason Donville says something about a company, I tend to remember.
What is Tucows? It's a business that offers Internet services to end users and business, including: domain names and mobile phone service. Pretty simple.
A couple of months ago, I remembered the name and I came to see how expensive it was. I was surprised to see a company not so expensive, with great numbers and a certain momentum.
In fact, in my last investment sheet (numbers gathered in april), Tucows ranks as one of the best investment ideas. See for yourself:
Performance last 5 years: 530%
Annual EPS growth last 5 years: 48%
Actual ROE: 37
ROE last 5 years: 23
Beta: 1
PE (2016): 14
Forward PE: 10-11
Buyback: About 30% of the shares have been bought back by the company over the last 5 years
Debt: Medium-high (8,5 times earnings)
The last results are out today. Check it out:
EPS: 0,42$ (US) compared to 0,25$ for the same quarter, last year
Price of the stock: 24$ (US)
It's probably my biggest conviction in the market right now.
I may be wrong.
I'm actually wrong in a very consistent way this year.
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