Viking Posted March 22, 2010 Share Posted March 22, 2010 I have initiated a small position in Shaw (SJR-NYSE / SJR.B-TSE). The shares are trading (CAN $ details) at just over $20.00 - current dividend is $0.88/yr = 4.4% (payout ratio = 67%) - F2009 earnings = $1.19; P/E = 16.8 - F2010 earnings forecast = $1.45; P/E = 13.8 Shares have sold off recently due to Shaw's likely start up of wireless business at end of 2010 and the uncertainly around how much they will chose to spend. Reading through the quarterly report etc and it certainly appears that Shaw is a well run business. Management also looks to be very shareholder friendly with earnings (high dividend yield and share repurchases). similar to FFH, the shaw family has clear voting control. Their current businesses are performing exceptionally well and they have a very good historical return on equity. I believe Shaw management is calling for earnings to grow by 11% this year. Their main competitor out West is Telus; my personal experience is Telus' customer service is a train wreck. In cable/internet, Shaw also appears to have the much better technology. Bottom line, this stock looks to be a solid bet to deliver me 8 to 10% per year (between dividend and price appreciation). As I have said before I am looking to find a basket of these types of opportunities to hold in place of a portfolio of bonds... Anyone else have an opinion on Shaw? Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now