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Taiga Building Products Ltd T.TBL

Alternate Symbol(s):  TGAFF

Taiga Building Products Ltd is a Canada-based independent wholesale distributor of building products in Canada and the United States. The Company operates within two reportable geographic areas, Canada and the United States. It owns and operates four wood preservation plants that produce pressure treated wood products. Its product categories include composite decking, engineered wood, fencing, flooring, insulation, lumber, moldings, panels, preserved wood, roofing, and siding. The Company offers a selection of engineered wood products and related accessories. It provides a range of lightweight, easy-to-install fencing products for home or commercial use. It produces and distributes a variety of luxury vinyl and laminate flooring products, along with essential supplies and accessories. It also specializes in distributing eastern and western Canadian dimensions of various wood, including Spruce, Pine, Fir (SPF) lumber, Douglas fir lumber, and fir/larch in less than carload (LCL) volumes.


TSX:TBL - Post by User

Bullboard Posts
Comment by jbsbillon Oct 28, 2010 10:11am
396 Views
Post# 17623463

RE: RE: RE: Expect dividend soon

RE: RE: RE: Expect dividend soonYou are much too optimistic here with your 9 cent semi annual prediction.  Taiga specifically said they'd pay 25% of earnings out in dividends and would pay dividends semi-annually.  They earned around 37 cents last year and paid out 9.24.

I expect Taiga to again earn between 35 and 40 cents this year (solid, but no gain because of the recession and because a strong Canadian dollar hurts their earnings). [Why is this stock selling for only $1 with 35-40 cents worth of earnings????  That's a question for another day.] 

That would put them on track to pay another 9 cents or a little more this year.

But you forgot that their earnings are seasonal.  They make lots of money in the 2nd and 3rd calendar quarters (their 1st and 2nd fiscal quarters) and sort of tread water the rest of the year (break even to slightly positive).  Taiga's 17 cent 2Q earnings are completely consistent with my 35-40 cent annual prediction. 

That's why I expect them to pay out somewhere around 4.5 cents now and another 4.5 cents plus or minus a little at the end of the fiscal year (which ends March 31). 

If you're looking for 9 cents in this coming dividend you will likely be disappointed and I don't want you running around, blaming the company, calling them liars, and selling off, just because you haven't been thinking about seasonality.
Bullboard Posts