Thursday, September 6, 2012

Stewart Enterprises Ain't Dead Yet

Stewart Enterprises (STEI) reported solid 3Q'12 results yesterday (02012.09.05) after the markets closed. I liked the following from the company's press release.
"Generating operating cash flow of $30.3 million, or an increase of 22 percent, and free cash flow of $26.7 million, or an increase of 41 percent."

I also liked this...

"During the third quarter we repurchased 1 million shares of our common stock for an average price of $7.26 per share, resulting in a more than 5 percent decrease in total shares outstanding in the last twelve months. Over the last three years, we have increased our quarterly dividend by more than 60 percent, resulting in a return of approximately $36 million in dividends to our shareholders over the same time period. Even after the significant deployments of cash flow, our balance sheet and liquidity remain strong with $79 million in cash and marketable securities on hand with no amounts borrowed on our $150 million credit facility."

STEI closed yesterday (02012.09.05) at $7.61. 52-week range: $4.92 - $7.78.

[update::02012.09.06] A few minutes after I posted this I took a peek at STEI's SIR (Short Interest Ratio). Finance.Yahoo.com is reporting it being a whopping 45.3. 27% of STEI shares are closely held and "institutions" own 72% of the shares. STEI has to be above $10 before I consider selling any of our shares.

[update::02012.09.06 (after market closed)] STEI hit a new 52-week high of $8.38 before closing at $7.98, up almost 5% for the day. Volume was 1.23 million vs. trailing-3-month avg. of 0.3 million.

No comments:

Post a Comment