Transcontinental Stock is my first buy of 2019!
I finally put my money where my mouth is. I’ve been talking about Transcontinental’s stock a LOT!. It started in the summer – It was one of the top stocks that screened in my Summer Stock Screen
I then wrote another article in October about how cheap it was. You can read that post HERE
Lastly, TCL was the stock I chose in RoadMap2Retire’s stock picking contest as well earlier this year. Needless to say – I’ve been thinking about this company for a while.
I actually had a buy order in for TCL on Friday, at a price of 21.03 but it never got filled, so when I saw the price had dipped again this morning, I put in another offer – this time at $20.93 – and it got filled right away!
I purchased 125 shares at a cost of 20.93 (plus commission).
I’ve already written a few times about the company, and why I thought it would be a great addition to my portfolio, so I won’t do a huge write up today. You can click the links above if you want more info. I WILL however, just point out a few things:
- Trading at a 36% discount to it’s 52 week high,
- Current P/E of 8.1
- TTM EPS of 2.62
- 4% dividend yield
- Increased dividend every year since 2001
- Low payout ratio
While this wouldn’t be considered a huge growth stock by any means, the value seemed too good to pass up. I’ll happily sit and collect a 4% yield while waiting for the price to bounce back.
This purchase of 125 shares will add $105.00 to my annual dividend income, and more importantly, it allows me to DRIP 1 new share each quarter.
Do you own TCL? Let me know what you think of this purchase.
Cheers!
P.S – I was really close to purchasing Andrew Peller instead – and if the price stays low, I expect ADW to be my next purchase.
nice Jordan
Im up 6.5% since i bought them. Seems like it makes some big swings in price. Glad you got some on this dip.
keep stacking those divs
cheers
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Rob, I forgot that you had picked up shares of TCL. Great minds think a like i guess 😛
I had the cash in my RRSP from random DIV’s/partial drips all year – it was accumulating, and I was waiting until I had a big enough chunk to make a purchase…
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Really glad I came across your site bookmarking it for sure! Very helpful post. Hope to see any other future buys as well!
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Jordan –
Nice job on the massive purchase. Excited for you to start collecting those divvies!
-Lanny
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Thanks Lanny! Hoping this one pays off long term
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Looks interesting, Jordan. I did look into this stock a bit looked interesting. Seems like the valuation is pretty low and looks attractive. Any idea why the market is pricing it so low? Are the expectations depressed.
R2R
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I touched slightly on that in my previous post. Basically Investors seem to still be valuing this as a printing company, when in fact, more than 50% of revenues now come from the packaging business.
Revenue has been somewhat flat – but they have become more efficient – and raising the dividend. Like I said – not a huge growth play – i’d consider it more like a bond with a bit of capital appreciation
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Hey Jordan,
Great buy to start the year, but I have mixed feelings about the company. The whole printing business is on they way out. Even flyers will eventually disappear. Companies are trying to connect clients with their apps to further promotions. Less and less businesses use traditional advertising. The food packaging business is tough due to big competition. I would prefer they would focus on digital marketing, media production, and app development. Hope you make a quick profitable trade there.
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