It’s only natural that many investors, especially those who are new to the game, prefer to buy shares in ‘sexy’ stocks with a good story, even if those businesses lose money. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Firm Capital Apartment Real Estate Investment Trust (CVE:FCA.U). While that doesn’t make the shares worth buying at any price, you can’t deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital – but unlike such a sponge they do not always produce something when squeezed.
How Fast Is Firm Capital Apartment Real Estate Investment Trust Growing Its Earnings Per Share?
Over the last three years, Firm Capital Apartment Real Estate Investment Trust has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don’t think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Over twelve months, Firm Capital Apartment Real Estate Investment Trust increased its EPS from US$0.81 to US$0.87. That’s a modest gain of 6.8%.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Not all of Firm Capital Apartment Real Estate Investment Trust’s revenue this year is revenue from operations, so keep in mind the revenue and margin numbers I’ve used might not be the best representation of the underlying business. The good news is that Firm Capital Apartment Real Estate Investment Trust is growing revenues, and EBIT margins improved by 50.0 percentage points to 54%, over the last year. That’s great to see, on both counts.
You can take a look at the company’s revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
Firm Capital Apartment Real Estate Investment Trust isn’t a huge company, given its market capitalization of CA$46m. That makes it extra important to check on its balance sheet strength.
Are Firm Capital Apartment Real Estate Investment Trust Insiders Aligned With All Shareholders?
Like standing at the lookout, surveying the horizon at sunrise, insider buying, for some investors, sparks joy. That’s because insider buying often indicates that those closest to the company have confidence that the share price will perform well. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
We haven’t seen any insiders selling Firm Capital Apartment Real Estate Investment Trust shares, in the last year. With that in mind, it’s heartening that Sandy Poklar, the CFO & Director of the company, paid US$12k for shares at around US$6.78 each.
Should You Add Firm Capital Apartment Real Estate Investment Trust To Your Watchlist?
One important encouraging feature of Firm Capital Apartment Real Estate Investment Trust is that it is growing profits. Not every business can grow its EPS, but Firm Capital Apartment Real Estate Investment Trust certainly can. The icing on the cake is that an insider bought shares during the year, which inclines me to put this one on a watchlist. Before you take the next step you should know about the 5 warning signs for Firm Capital Apartment Real Estate Investment Trust that we have uncovered.
The good news is that Firm Capital Apartment Real Estate Investment Trust is not the only growth stock with insider buying. Here’s a list of them… with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Foreign Investment in UK Finance Set to Drop on Covid, Brexit – BNN
(Bloomberg) — Big financial services firms are set to avoid investing in British businesses next year, discouraged by the uncertainties of Brexit and the Covid-19 pandemic.
Only 10% of of global financial services firms are planning to establish or expand operations in the U.K. in the coming year, down from 45% in April, according to a report by consultancy EY published Monday.
“U.K. financial services entered the pandemic in a very strong position, having led the rest of Europe in attracting overseas investment over the past 20 years,” said Omar Ali, U.K. financial services managing partner at EY.
The decline in appetite suggests the sector’s absence from the European Union trade talks “may have started to affect investor sentiment,” Ali said, while Covid-19 has made government support and infrastructure more important for those looking to invest.
The poll of 220 decision-makers painted a rosier picture in the medium term, with 53% expecting the U.K. to be more attractive for foreign direct investment in three years’ time.
©2020 Bloomberg L.P.
COVID-19 Investment Warning: The CRA Can Tax Your TFSA! – The Motley Fool Canada
A lot of Canadians weren’t actually that great at saving before the pandemic. Many lived during the last decade in relative ease, knowing that we had a strong economy that was only getting stronger. However, what we probably weren’t aware of was the increasing debt that both our country and others racked up.
Then the pandemic hit, bringing the Canadian government’s debt up another $15 trillion between January and September for a grand total of $272 trillion as of writing. We’re actually leading the charge in debt, ahead of countries like Japan, the United States, and the United Kingdom.
So, Canadians started to get their affairs in order, and that included their cash. In many cases, it meant opening up or taking advantage of a Tax-Free Savings Account (TFSA). With another TFSA contribution limit on the way in January, many are looking for another opportunity during perhaps another market crash. But before you do, the Canada Revenue Agency (CRA) has a word of warning.
The TFSA can be taxable
The TFSA can be taxed, but only under certain conditions. The TFSA is meant to get Canadians investing in Canadian business. So, the first problem is if Canadians are investing in companies outside Canada. If so, you’re subject to taxation on those returns. This can be a serious problem, as with a market crash, there were tons of great companies that saw the share price plummet. Just make sure those shares are Canadian. This also means making sure you’re investing in a company on the Canadian market, as many companies are listed on both the TSX and NYSE, for example.
Second, you can be subject to tax if you go beyond the TFSA contribution limit. If the TFSA was limitless, you could invest any time you wanted, as much as you wanted, and potentially make a killing! The CRA doesn’t want to miss out on those taxes. So, it creates a limit year by year. That way, if there’s a huge initial public offering (IPO), you only have a couple thousand to invest, rather than a hundred thousand.
You also can’t use your TFSA like a business. This happens if you’re making huge trades, trading too often, or making too much money basically. This is a bit of a grey area, so you must be careful. It seems the number right now the CRA is going off of is $250,000. If you make that much in returns, the CRA will want to take a closer look at how you’re making that money.
Finally, beware the TFSA contribution limit! Yes, I already mentioned this, but there’s another problem. You have $69,500 worth of contribution room this year. But let’s say during the pandemic ,you took out $20,000 to help with bills. Now, you’ve made that money back and want to put it back in your TFSA. Not so fast!
If you’ve already reached the TFSA contribution limit for the year, you cannot put money in your TFSA again, or it will be subject to taxes. You have to wait until next year, and then check out MyAccount on CRA or call CRA to see how much room you have available. Don’t mess it up!
The TFSA is an excellent tool to use during the pandemic, but be careful. You don’t want to take full advantage and then fall under these categories. If you do, it’ll make that TFSA contribution limit basically worthless.
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Ontario government increasing investment in video surveillance systems – The Review Newspaper
The Ontario government is investing $1.6 million in Closed-Circuit Television (CCTV) systems to help 18 police services across the province better detect, investigate and prevent criminal activity. Funding through the new Ontario CCTV Grant will help police services and their municipal partners install new or additional surveillance cameras in areas where gun and gang violence and other criminal activity are most prevalent.
“By strengthening CCTV surveillance systems across the province, Ontario’s police services will be better equipped to prevent criminal activity, identify and apprehend offenders,” said Solicitor General Sylvia Jones. “This expansion will support the local fight against guns and gangs while deterring other crimes such as drug and human trafficking, street racing and stunt driving. The use of CCTV cameras will also help hold criminals accountable by providing important visual evidence to support investigations and the prosecution process.”
The Ontario CCTV Grant, which was announced in August 2020, is providing police services with a total of $6 million over three years to expand CCTV systems in their communities and improve public safety.
The CCTV grant builds on the province’s approximate $106 million investment to combat gun and gang violence, with the support of the federal government, through Ontario’s Guns, Gangs and Violence Reduction Strategy.
“Improving the technology and information available to Ontario’s frontline police is critical to deterring unlawful activity and holding offenders accountable in our communities,” said Minister Jones. “Ontarians need to feel safe in their homes and their businesses without fear of crime as communities recover from the impacts of COVID-19.”
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