STOCKCHASE

Sugar in Canada is a duopoly. Their only 2 companies, and what's more, they are protected by a tariff wall against US companies and has 3 years to go. Their biggest input is natural gas, which is very cheap right now. Steady money-maker but not a big grower. For those that need income, it is pretty safe with a high yield.

2011-12-19

TOP PICK

5.120

2012 looks to be a better year so he thinks dividends will be increased. Benefit from low natural gas prices, which is their main input. Balance sheet has improved. Sugar prices have dropped, which is good for them, as a lot of times they have to buy sugar on the open market to meet demand. Yield of 6.6%.

2011-12-12

DON'T BUY

4.960

Benj Gallander

Looks at this one about once a year and then always decides it is not for him. Doesn't interest him at this time. Yield of 8%.

2011-10-04

BUY

5.150

A recession proof stock, especially because the business in Canada is a duopoly with tariff protection. As long as sugar continues to be in demand this company will be okay. Their main input is natural gas and they are able to lock in low natural gas prices. Current high sugar prices are very bad for them as they have to buy sugar when they cannot produce enough. Nice dividend at 6.6%.

2011-09-14

BUY

5.150

In the fortunate position of a duopoly in Canada and there is a tariff wall. Natural gas is used in the drying process and low price is a benefit. Income is not bad (6.6%), not a big growth stock.

2011-08-24

DON'T BUY

5.410

Prospects should be fantastic as the world continues a never-ending growth pattern of more sugar however are subject to higher operating costs, especially raw sugar prices. This has hurt them. Have a partial hedge as they have a major beet plant in Alberta giving them a source for sugar.

2011-07-14

Comment

5.160

Brooke Thackray

In the commodity sector which is coming to the end of its period now. Chart shows a descending triangle and it has broken down through it. Getting close to its $5.10 support very fast. Next level would be $4.80.

2011-05-05

PAST TOP PICK

5.050

(Top Pick Dec 2/09, Up 30%) The crop looks really good in 2011. Converting to corp. and leaving dividend where it is.

2010-12-07

TOP PICK

4.840

Convertible debenture (RSI.DB.B-T) due June 29/13. Yield of around 4.5%.

2010-09-28

Comment

4.860

Limits on how much beet sugar can be shipped to the US. Key input costs are Nat gas, which is working on their side. Prime market is Canadian.

2010-09-10

PAST TOP PICK

4.780

(Top Pick Dec 2/09, Up 19% total return) Play on income. Good quality yield, safe play. Have hedged inputs of Natural Gas for the next few years. They convert Nat Gas into sugar. Converting to corp. and cutting distribution to be same after tax. Little bit of upside.

2010-07-20

BUY

4.910

Slow growth. Manufacture sugar but don't sell it at spot prices. High sugar prices are not good as it encourages customers to switch. Distribution will be cut when they convert but for taxable accounts it doesn't matter since what you lose in distribution yield, you get tax dividend credit for it. Use natural gas, which is currently very cheap.

2010-03-24

DON'T BUY

4.960

Dean Orrico

Volatility in distributions through the years. Great performer in the last year because sugar prices have doubled. If you want a holding that gives steady income with some growth there are better places to be.

2010-01-20

BUY

4.770

Stock hasn't gone anywhere since 2001 but he has got $.40 a share in dividends every year. Sugar prices are at an 11-year high but this doesn't boost their bottom line. Will have to convert in 2011 but the dividend looks pretty safe and he expects a good year in 2010.

2010-01-04

TOP PICK

4.250

10.8% distribution. Manufactures and distributes sugar. One of only two companies in Canada. Low natural gas prices to cook the sugar and higher sugar prices gave them a record year. Ran a flawless manufacturing this year. Can sustain the payout ratio when it converts to a corporation.

2009-12-02

HOLD

3.860

Jeff Parent B. Eng. FCSI

Yield of 12%. In a consolidation phase. Difficult to analyze technically. Not a lot of volume and what is there is spotty. Could possibly get up to $4.30. Use $3.60 as a Stop. Better opportunities available.

2009-01-05

Comment

4.380

Primary facility is in Alberta. Basically service domestic markets because of stringent export rules. Key input costs is natural gas. He is interested in looking at this one.

2008-08-13

Comment

4.490

Bill Carrigan

It is now back into support again. Not sure if high input costs caused it to drop. You are probably okay to buy it here. In a market like this, he would prefer a trust that has infrastructure such as pipes, lines and utilities.

2008-07-03

BUY

4.900

(Market Call Minute.) Excellent small income trust. Distribution has gone up. Their trade protection was renewed. Pretty safe.

2008-02-19

Comment

4.830

(Market Call Minute.) Doesn't think it will go up with other agricultural stocks. No natural gas price has helped the stock.

2008-01-21

TOP PICK

4.940

Bill Carrigan

He looks on this as a hidden play on agriculture. It's a way to play soft commodities and is overlooked. It is trying to break out. Nice uptrend. Use $4.25 Stop.

2008-01-09

HOLD

4.790

Michael Sprung

Price has been relatively strong within the income trust market. Cash flow is fairly predictable. The one overhang is that we are getting closer and closer to 2011.

2007-12-10

HOLD

4.830

Chris Rankin, MBA, CFA

They are making more profit then they have historically. There is two sugar companies (Rogers and Atlantic) that have been able to effectively raise prices on refining which is pretty unusual. They have duopoly, which allows them to set the prices.

2007-10-19

BUY

4.350

Sugar processing. Currently there are restrictions on how much sugar can go into the US. Hedge natural gas for their input costs. Decent buy at this price.

2007-07-04

DON'T BUY

4.310

Andrew Guy, CFA

Like a lot of consumer income trusts, a lot of things are going against them. Did a good job of managing what they can control, but a lot of input costs have gone against them. Sugar is not a freely tradable commodity making it difficult to get into the US.

2007-06-27

BUY

4.350

Andrew Guy, CFA

US is closed and most of their sugar comes from beet farmers in the Southeast US. Roger’s can take advantage of this through their large beet farms in Alberta. Have large part of their quota in a US. Takes a lot of energy. Has a little too much debt for his purposes.

2007-05-25

HOLD

4.350

Ian Nakamoto

Thinks that next year and the year after they will raise their distributions. Have been buying back units.

2007-05-14

Comment

3.970

Chris Rankin, MBA, CFA

Doesn't feel they will benefit from the ethanol cycle.

2007-02-09

DON'T BUY

4.040

Andrew Guy, CFA

For large part of their business, there are trade barriers to get into the US that makes it difficult for them. Have had high input costs, particularly natural gas. Have started to turn this around by taking costs out of their system. Have high debt.

2007-02-08

HOLD

3.780

There are only two sugar refineries in Canada. It will profit from lower energy prices in the short run. Doesn't have very terrific growth prospects and is now faced with a tax situation on income trusts. Feels the distribution is very solid at 11.1%.

2007-01-10

DON'T BUY

3.720

Michael Sprung

This company has been clobbered. Sugar has always been a very cyclical business. Wood questioned why they became an income trust.

2007-01-05

BUY

3.610

Part of the impact costs that affect them is natural gas. The lower gas price is favourable to them. They have hedged some of this. Good price.

2006-11-03

DON'T BUY

4.340

Robert Lauzon

Seems to be in a pretty good situation with natural gas being down. However, there is no assurance that gas will stay cheap. Has a healthy amount of debt. Gas weighted.

2006-10-20

TOP PICK

4.300

This company refines sugar. It is a screaming buy. There is little downside risk.

2006-09-28

BUY

4.190

Thinks the fair value of it is probably $4.75/$4.80. They raised the distribution. Sugar prices are high and with natural gas down, their production costs are lower.

2006-06-06

WEAK BUY

4.220

They are benefiting from lower natural gas prices. World sugar prices could rise, but Canadian prices are protected so there is not much upside is there would be in raw commodity sugar.

2006-06-01

DON'T BUY

4.000

Sugar prices globally have been rising, but the prices in Canada are controlled. The prospects going forward are pretty flat. Have had a new competitor open up about 18 months ago.

2006-05-19

WATCH

4.300

global sugar prices have been quite strong, however Roger's Sugar is selling within the Canadian Regime, so their prices are controlled. Their top line revenue has not increased that much, but their cost line has been hurt by natural gas prices. 6 years ago they converted one of their plants from coal to natural gas, which at the time looked good, but now natural gas has become more expensive. Should be watched but it all depends on the price of natural gas.

2006-02-25

HOLD

4.400

Kevin Hall BComm, CFA

An OK story. Fundamentals are improving in terms of sugar prices.

2006-02-17

DON'T BUY

3.730

Robert Lauzon

Have a new CEO, got a favorable tariff ruling and is recommended by several banks, but is still backing off. One of the main problems is that its main input is natural gas therefore, input costs are rising. They are under margin pressure because they can't pass the costs on.

2005-12-23

BUY

3.750

Has been a lousy performer this year. Got government antidumping protection for 3 years. Sugar prices are very strong globally. No indication that the distribution will be cut. 10/11% yield. Stock price should appreciate modestly.

2005-12-19

WEAK BUY

3.830

Bill Carrigan

As far as the business enterprise trusts are concerned, the only ones he is interested in are the recovery candidates. In this one, you can see a low at the end of 2003 and a higher low currently. Maybe, it is a recovery candidate. If you buy, make sure you have a stop on it.

2005-11-28

DON'T BUY

4.640

Patrick Kim

A trust that should only be held by those with a high appetite for risks. Essentially a commodity trust. A lot of exposure to unregulated pricing for their inputs as well as to the US$.

2005-06-10

DON'T BUY

4.330

Greg Guichon

The good news over the last couple of years is that the company has built themselves into a pretty good financial position and their balance sheet is in very good shape. The bad news is they still have a lot of competition. A big US producer pushes out a lot of subsidized sugar.

2005-05-20

PAST TOP PICK

4.300

(A Top Pick Jan 25/05. Down 10%.) A duopoly. with only 2 sugar companies, this and Redpath. Likes the yield. Will buy more at this price.

2005-03-29

DON'T BUY

4.400

Greg Guichon

His criteria is for a trust to have a market dominance in what they do and as little competition as possible. This trust does not fit his model at all.

2005-02-11

TOP PICK

4.790

Sugar's a duopoly in Canada with only 2 companies, Redpath and Rogers. Industry is protected by a tarrif wall. Making pretty good margins. A nice yield.

2005-01-25

TOP PICK

4.600

Ian Nakamoto

Distribution is about 9%. Feels there is a real upside in capital appreciation.

2005-01-05

DON'T BUY

4.050