{"id":542,"date":"2008-07-21T20:34:38","date_gmt":"2008-07-22T00:34:38","guid":{"rendered":"\/blog\/?p=542"},"modified":"2013-09-23T00:25:46","modified_gmt":"2013-09-23T05:25:46","slug":"priszm-q2-2008","status":"publish","type":"post","link":"https:\/\/www.holypotato.net\/?p=542","title":{"rendered":"Priszm Q2-2008"},"content":{"rendered":"

Well, I mentioned that a distribution cut was priced into QSR.UN<\/a>, and now that their Q2 results have been released that’s indeed what has happened. The cut was towards the steeper end of what I figured, down to $0.60\/year going forward (5 cents per month), and 90 cents for 2008 (including the 63 cents already paid for the year) even that is still at about a 90% payout ratio, so the cashflow looks to be managed. The stock jumped ~5% on the news, but closed up just 2% after a fall in the last minute or two of trading. At $3.50, that’s still a yield of 17%, and I think it will probably <\/em>move up over the next few days on the news, and my new price target is $4 (going to a yield of 15%). I’m somewhat tempted to buy more, especially if it stays down at $3.50 tomorrow. It would be over-concentrating in a mediocre company to an uncomfortable degree, but I think it could possibly jump 10% or more in a few days as the news percolates out — and if not, I can live with a 17% yield; the question being of course, how sustainable that will be going into the future.<\/p>\n

There are some big questions raised here. The world does not look to be ending for Priszm, and the fundamentals, from what I see, indicate that it is a value at this price. However, there is an issue of trust and faith in the management raised now. Just a few months ago they were fairly bullish in raising their distributions back up to $1.20\/year — to a level that was immediately recognized by the analysts as being unsustainable. Then they cut it down, to about a 50% payout, far beyond what the analysts were calling for and what the cash flow would dictate, surprising investors. They over-promised, and under-delivered.<\/p>\n

We’ll see what the analysts have to say in the morning.<\/p>\n","protected":false},"excerpt":{"rendered":"

Well, I mentioned that a distribution cut was priced into QSR.UN, and now that their Q2 results have been released that’s indeed what has happened. The cut was towards the steeper end of what I figured, down to $0.60\/year going forward (5 cents per month), and 90 cents for 2008 (including the 63 cents already […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"_links":{"self":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts\/542"}],"collection":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=542"}],"version-history":[{"count":0,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=\/wp\/v2\/posts\/542\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.holypotato.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}