Canadian Dollars Blog

For the fiscal year ended June 26, 2010, Danier Leather (TSX: DL) reported year earnings of $1.58 per share. As their business is seasonal, a quarterly loss of 0.14 per share was recorded. This was down significantly from the same quarter last year in which they lost 0.47 per share. Although there has been quite a run up in the last several months, this one is still a very compelling buy. Here are some reasons why we continue to believe this one to be a hold. 1. Increasing sales and earnings From 2009 to 2010, EBITDA more than tripled to $15.2 million from $4.3 million last year. Despite the sluggishness of Canadian retail, this brand has still managed to increase sales by a decent 4%. 2. Share repurchase Management continues to believe that the stock is undervalued, in the last fiscal year, the company has repurchase 28.9% of the prior year's outstanding subordinate voting shares. Specifically, 1,352,700 voting shares were repurchased. This is nothing to sneeze ...

My first sell within my TFSA: bought: SINA at 37.56 sold: SINA at 43.17 I plan to deploy the cash into a high dividend stock. This stock wasn't intended for a long term hold either. With the recent run up in Danier Leather shares, I am considering trimming my position as well. With the stock up 78% year to date, I may consider taking 1/3 off the table and deploying for another use. Will report further.

Let's look at some numbers shall we: Shares outstanding at end of quarter: 4,794,269 Cash: $32,307,000 or $6.738 /share Shareholder Equity: $57,379,000 or $11.968 /share The stock is currently trading at 8.20. The business is profitable. Last quarter the EPS was 0.48 diluted. Subtract the cash in the balance sheet and you have a stock that is ridiculously cheap. Surprised nobody else is noticing this one. Disclosure: I initiated a position at 6.50 and am currently still holding. This one has much more to climb. Glad to have this as a holding in my TFSA.