Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

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shmenge
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Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by shmenge » 28 Jun 2009 07:38

I couldn't find a thread on this fund.

Current yield = 12.64%
Dividend = 0.46
P/E = 15.32
52 wk high/low = $4.60/ 2.84
Latest close = $3.63

Would you buy this fund for income in a non-reg portfolio?
ISTM a steady-eddie performer. What about the long term prospects for sugar?
Does anyone own it and care to comment?
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Nemo2
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Post by Nemo2 » 28 Jun 2009 07:49

TDWH says that the payout ratio is 192%, which, from my limited knowledge viewpoint, might indicate that the distribution is precarious, but WDIK.......better minds will surely provide superior input.
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Post by Shakespeare » 28 Jun 2009 09:00

It has a bad history somewhere, but I don't remember the details.

Another $10 offering that had to slash its distribution perhaps?
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Post by TrueMrP » 06 Jul 2009 21:47

sweet duopoly

http://www2.macleans.ca/2009/03/23/bitt ... -in-sugar/

I have a small position. Got in 3 years ago. Trailing 12 month results worry me now:
http://investdb.theglobeandmail.com/inv ... _id=165785
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Post by bindexit » 06 Jul 2009 23:31

My average cost is $4 (excluding distributions). I dripped all units received and trimmed off some units once.

Rationale to purchase: the 'duopoly' and product thats needed. The article referred to anti-dumping law for US and Europe. My worry is the removal of the barrier to entry and South America. The article did not refer to SAS. If I recall, Canada signed an agreement with one of SA countries and wondered if the sugar industry would eventually be impacted.

I did not realize the 12 month distributions significantly exceed EPS. It is a good thing I have a small portion. I will continue to hold because of only 2 major players in competition.

BTW If you refer to the website Canadian Insider, Belkin Entreprises has been buying.

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Re: Rogers Sugar Income Fund (Symbol-RSI.UN)

Post by kcowan » 19 Mar 2010 12:53

They just completed an IPO on Convertibles:
5.7% pa
$6.5 conversion price
April 30, 2013 earliest redemption if 125% of above price until April 30, 2015
April 30 2017 matures

Paying off $50 million Convertible at 6% due June 29, 2012 on June 29, 2010.
For the fun of it...Keith

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Re: Rogers Sugar Income Fund (Symbol-RSI.UN)

Post by Serenity » 21 Mar 2010 10:15

kcowan wrote:They just completed an IPO on Convertibles:
5.7% pa
$6.5 conversion price
April 30, 2013 earliest redemption if 125% of above price until April 30, 2015
April 30 2017 matures

Paying off $50 million Convertible at 6% due June 29, 2012 on June 29, 2010.
I hold a big chunk of the June 2012 convertible debentures in my wife's RRSP. Does the $50 million early redemption cover all the June 2012 convertibles or just a portion? It seems to me that there exists a general trend of companies refinancing debt now or extending the maturity to avoid presumably higher costs in the future. Surely, for investors that implies taking the opposite position - stick to reinvestment in short term GICs and debentures so as to benefit from higher rates in the near future?

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Re: Rogers Sugar Income Fund (Symbol-RSI.UN)

Post by kcowan » 21 Mar 2010 12:07

Serenity wrote:...Does the $50 million early redemption cover all the June 2012 convertibles or just a portion? It seems to me that there exists a general trend of companies refinancing debt now or extending the maturity to avoid presumably higher costs in the future...
You would have to check the wording of yours. (I think you will lose your conversion privilege but I have not read the wording.)
For the fun of it...Keith

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Post by BRIAN5000 » 21 Mar 2010 20:48

Nemo2 wrote:TDWH says that the payout ratio is 192%, which, from my limited knowledge viewpoint, might indicate that the distribution is precarious, but WDIK.......better minds will surely provide superior input.
Payout Ratio 0.7x From TDW ???
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little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by marty123 » 28 Mar 2011 10:43

I got into this one last week, mostly as a way of diversifying.

- Mature and stable market
- Protected from US dumping by tariffs that get renewed every 5 years (last time in Nov 2010)
- Duopoly with little competitive activity, huge barriers to entry (assuming tariffs stay, which they should due to US’ very aggressive protection of their industry)
- Recently changed from income trust to dividend yielding company
- Little to no correlation to the market. Although the stock price fluctuated in the 2008-09 crash, sales and income were unaffected by economic market conditions.
- Boring business, little risk, little investor interest. It should be hard for management to take large risks
- Payout ratio as a trust was <80% over the past several years, and it is being reduced since corporate conversion
- Retained earnings being used to pay off debt, while the rest is getting refinanced with lower interest rates
- US sugar prices are up significantly, which may result in additional import quotas being allocated for 2011

The dividend yield is at 6.3%.

Downsides:
- Based on the above, it’s hard to consider RSI having potential to significantly grow its business, except in the less-protected sweetener market
- Commodity prices may reduce contribution margin. However, sugar price at retail levels is less elastic. A wholesale risk exists, but that’s the price of being uncorrelated to the commodity stocks in my portfolio
- Competition has deep US pockets, and may eventually seek a price war (Loblaws example). However, deleveraging by RSI will make it less appealing for Redpath to cannibalize its own margin.
- Healthy eating habits may cause demand to go down (although there has been no downtrend in the past few years), but a partial shift to higher-margin sweeteners (also sold by RSI) is likely to be seen.
- Increasing FTAs between Canada and Latin American countries expose the domestic industry to more competition
- Use of convertible debentures for financing reduces the upside potential (which is already limited by the size of the market).

Not a perfect stock, but I really like that it’s uncorrelated to the rest of my portfolio. It almost feels like holding a perpetual preferred, where a large portion of the interest risk is traded for business risk.

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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by Spidey » 16 Dec 2011 07:52

Anyone take a look at this one lately? Seems to have a nice and seemingly stable dividend of 6.6%. PE seems reasonably at 6.58 and forward PE of 11.11. Debt to shareholder equity, also not bad at 1.15. PB at 1.57. (This all according to Globe and Mail; TD has slightly different results.) And although there was insider selling earlier in the year, all of the recent insider purchases since late March have been buys. As an extra little bonus this one goes ex dividend at the end of this month.

Not a growth story, but the company seems to have a long history of providing a stable dividend. What do you think?
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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by kcowan » 16 Dec 2011 09:18

I bought their Dec 2018 convertible for my fixed income: 5.75% nominal currently yielding 5.85%
For the fun of it...Keith

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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by Profit not Prophet » 06 Dec 2016 12:34

Saw this mentioned over in the what did you buy thread. Looked it up on the globe for fun and it's an interesting chart. If you plot it 10 years against the sp500 you say wow fantastic beats the market. If you chart it five years you tear away the hero medal and call it a bum. Shows how your dates are important. It seemed to have a bit of trouble winter of 2013 and then again jan 2014 to jan 2016.

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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by kcowan » 16 Jul 2017 17:27

They intend to retire their 5.75% debentures due Dec 31/18 with an issue for 5.0%. Placed an expression of interest and got 33% fill. I can convert at $7.20 so I will take a pass. The new offering converts at $8.26 compared to the current $6.05 price. Since they are raising the money to get into the maple sugar business, there might be some price upside.

Unfortunately the holding will be a smaller part of the FI portfolio after this. So will be looking to buy other solid companies. It makes the top five ranking according to this blog.
For the fun of it...Keith

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Re: Rogers Sugar Inc (Symbol-RSI)(formerly RSI.UN)

Post by Dvorak » 11 Aug 2017 18:06

I'm trying to find a news release or some other confirmation that the 5.75% debentures RSI.DB.D will be paid out but have been unsuccessful. Could you provide the details of your source? I seen the 5.7% debentures were paid out May 1, 2017, and the prospectus indicates proceeds are for the new aquisition. Thanks

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